Are you looking for a Food Venture? Do you want to be your own boss? Steak ‘n Shake makes it possible for you to start your food and beverages business without having to do it alone. Introducing Steak and Shake, a franchise designed for your success.
Do you possess a successful track record in business leadership with proven positive results? Steak ‘n Shake is seeking entrepreneurial Franchise Partners like you with a vision, passion, and an unwavering desire to take hold of the American Dream.
In this article, we’ll dive deep into the Steak and Shake business with capital requirements, fee, profit, and step-by-step guidelines to get this franchise – and answer some common questions about the chain.
- Franchise Fee: $25,000
- Franchise fee: for $10,000(Company-operated restaurant)
- Royalty Fee: 5.5%
- Ad Royalty Fee: 3%
- Training Expenses: $16,000 – $55,000
- Building or Leasehold Improvements: $621,000 – $762,860
- Total Initial Investment: $1,208,000 – $1,687,000
Table of Contents
Overview of Steak and Shake Franchise
Steak ‘n Shake is one of the renowned and rapidly growing food and beverages chains, founded in February 1934 in Normal, Illinois by Gus Belt 1934. The franchise caters to a range of fast-food items and has pioneered the concept of premium burgers and milkshakes.
Having its franchise network and more than eight decades of expertise, the company has become a symbol of its heritage. The word “steak” stood for STEAKBURGER. The term “shake” stood for hand-dipped MILK SHAKES. It is a subsidiary chain of Biglari Holdings Company.
Now, are you excited to become a part of Steak and Shake Food joints and want to explore the potential opportunity in this industry? Let’s dive in more;
Please continue reading if you are passionate about the F&B Industry & this little snippet about the Steak and Shake chain excites you.
We will offer comprehensive and well-researched information regarding the Steak ‘n Shake chain, along with its price, fees, profit margin, and—most importantly—the reason “Why“ you need it.
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Why consider owning a Steak and Shake Franchise?
- Proven business model:
- The franchise backs its owner with its expertise of over eight decade in food industry.
- Well known for its quality and best-in-class menu range and services.
- Investment of $10,000 for Franchise Partner:
- One needs to require an initial investment of US$10,000 to become a Steak and Shake restaurant partner and earn 50% of restaurant profits.
- Extensive training programs:
- The franchise offers and expects its partner to complete their training programs to ensure better operation and services at their outlet.
- Well established operating systems:
- Steak and Shake provide Franchise Partners with turnkey systems to help them run their restaurants.
- All-round support:
- Interested prospects may get Support for field-based operations.
- Administrative services (payroll, accounting, etc.)
- Creative and powerful marketing support:
- One may certainly leverage their world-class creative and powerful marketing strategies and support.
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How much does a Steak and Shake Franchise Cost?
The franchise cost for a Steak ‘n shake depends on several factors. The chain offers multiple models, and one can take up this franchise depending on their financial budget.
Nonetheless, to start a Steak and Shake franchise, one would at least require an initial investment of from $1,208,000 – $1,687,000 for a free-standing Quick Service restaurant. This initial investment does cover the franchise fee, marketing fee, and other necessary expenses.
Steak and Shake Partner Program – Company-Operated Restaurants
The Steak ‘n Shake franchise partner program offers applicants a chance to own and operate a restaurant franchised by Steak ‘n Shake and earn 50% of the restaurant’s profits.
Cost for other models:
- In-Line Quick Service Format: $454,000 – $1,371,000
- Non-Traditional: $316,000 – $715,000
- Roadside Format: $705,000 – $1,199,497
What is the Steak and Shake Franchise Fee?
The franchise fee for the Steak ‘n Shake is $25,000. Furthermore, to qualify financially, franchise candidates and their partners/investors need to have a minimum net worth of $5,000,000 with available liquidity of $2,000,000.
|Type of Fee||Cost & Other details|
|Construction Management / Fee||$0 – $35,000|
|Building or Leasehold Improvements||$621,000 – $762,860|
|Furniture & Fixtures, Equipment & Signage||$303,500 – $400,640|
|Pre-Opening Expenses||$5,000 – $10,000|
|Inventory and Supplies for Opening||$10,000 – $15,000|
|Training Expenses||$16,000 – $55,000|
|Architectural, Civil Engineering &|
Other Professional Fees
|$35,000 – $78,000|
|Impact and Tap Fees||$5,000 – $78,000|
|Grand Opening Marketing Expenses||$0 – $25,000|
|Extension Fee||$0 – $10,000|
|Additional Funds for 3 months||$15,000 – $20,000|
|Total||$1,208,000 – $1,687,000|
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Additional Cost for Steak n Shake franchise
Typically, to run and maintain a Steak ‘n Shake outlet, one must adhere to their standards and are liable to pay a few additional costs such as Royalty fee, advertisement fee, maintenance fee, and a few other investments.
The ongoing royalty fee for Steak and Shake Franchise is 5.5% & the ad royalty fee is 3% of Gross Receipts weekly and can be waived for nontraditional locations.
Is Steak and Shake Franchise Profitable?
Considering the Steak ‘n Shake founder’s expertise of over 8 decade, a proven business model, extensive training support, best-in-class marketing strategies, and a Nationwide network for raw materials suppliers, one may anticipate earning an impressive profit margin.
However, we would advise you to do the proper market research and business analysis and discuss with at least five franchisee owners before owning a Steak ‘n Shake company outlet.
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What does it require to Own a Steak ‘n Shake?
- First and most important – One should have the required funding to own a Steak ‘n Shake, that is one should be ready to invest at least $10000 as a Franchise partner fee.
- Franchisee owner should be capable of running the day-to-day business, with no absentee ownership.
- A passion for excellence — fanatical about pleasing customers.
- One shouldn’t be involved in additional business ventures.
- Commitment to high performance and to delivering quality products.
- Interested applicants must undergo and complete the 6 months on-the-job training program offered by the franchise.
- Dedication to superior guest service.
Location Available for Steak and Shake Franchise
Here are the list of Steak and Shake franchise locations available;
How to Get Steak and Shake Franchise?
Steak and Shake chains require relatively low investment and can return impressive profits with low risks.
Nevertheless, the Steak and Shake chain may offer several benefits, and interested candidates can take up franchise outlets locally and expand through their expertise and endless support systems further.
Please fill in the details like Name, Phone Number, Email, Experience, Interested area, and other required information.
Started in 1934 by Gus Belt, Steak ‘n Shake is one of the renowned and rapidly growing food and beverages joints that caters to a range of menus such as Burgers, Fries, Shakes, Ice Cream, Hot dogs, and other soft beverages. Currently, It boasts more than 500 franchise partners on board -Pan US.
However, Its expertise of over 8 decades, a proven model, the network of vendors, professional training, low investment(For partner program), and bulk purchasing power aids an extra advantage for the new franchisee unit holder.
With an Initial investment of US $10,000 for Company-operated franchise chains, Steak ‘n Shake chain may offer an outstanding profit margin to its stakeholders.
The Bottom line – In case you are interested in the Food and beverage industry and have got all the necessary things required for this chain, then Steak ‘n Shake is for you. With its immense legacy, expertise, and robust supply chain, one may experience stable and steady growth in their entrepreneurial journey.
So, what are you waiting for? Go and start your entrepreneurial journey with Steak ‘n Shake
Good Luck!! Happy Franchising!!
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How much does it cost to start a Steak ‘n Shake franchise?
Ans: To become an approved Steak ‘n Shake Outlet owner, one would at least require an initial investment of $1,208,000 – $1,687,000 for a free-standing Quick Service restaurant. There are some other costs involved and a few of them are listed below;
Franchise Fee: $25,000
Construction Fee: $0 – $35,000
Franchise fee: $10,000(Company-operated restaurant)
Royalty Fee: 5.5%
Ad Royalty Fee: 3%
Training Expenses: $16,000 – $55,000
Building or Leasehold Improvements: $621,000 – $762,860
Total Initial Investment: $1,208,000 – $1,687,000
How much does a Steak and Shake franchise owner make?
Ans: The profitability of any franchised outlet may vary depending on its geographical location. However, the low investment cost of $10000 to operate a franchised Steak ‘n Shake outlet can make up earn 50% restaurant’s profit.
Is Steak and Shake profitable?
Ans: The pandemic has caused Steak and Shake chains to lose money and close outlets over the past few years. Nevertheless, according to a recent media report, Steak and Shake has generated positive cash flow and has garnered attention from several media houses.