Steak n Shake is a fast-casual restaurant specializing in steakburgers and milkshakes. The franchise offers a variety of burgers, sandwiches, and shakes with a nostalgic diner atmosphere.
Key Insights
- Steak n Shake began as a classic American drive-in restaurant, built on a foundation of quality burgers and hand-dipped milkshakes. It has evolved to offer a familiar and accessible dining experience, serving a menu of popular diner-style food in a welcoming atmosphere that has resonated with customers for generations.
- The franchise operates a streamlined service model, combining counter service for quick, casual meals with table service for a more relaxed dining experience. This dual approach caters to a broad range of customer needs and preferences throughout the day.
- The business operates within the quick-service restaurant industry, a segment characterized by consistent consumer demand for convenient and value-driven food options. This industry segment continues to demonstrate resilience and opportunities for growth.
Franchise Fee and Costs to Open
Exploring the financial picture of Steak n Shake gives insight into both the upfront commitment and the potential revenue opportunity. According to FDD Item 7, opening this franchise typically involves an investment in the range of $1,207,909 - $2,695,052, along with a franchise fee of $25,000 - $25,000.
Financial Performance and Revenue
Yearly gross sales of $1,516,553 and estimated earnings of $181,987 - $227,483 show the potential financial performance of this franchise. These figures are crucial for prospective franchisees as they help to project revenue and profitability. They offer insight into the business's ability to generate income and can be used to compare its performance against other investment opportunities. The Franchise Payback Period of 10.0-12.0 provides an estimation of the time it might take for an owner to recover their initial investment. This metric is a key consideration for anyone evaluating the financial viability of a franchise, as it relates directly to the speed at which the business can become profitable. A shorter payback period can indicate a faster return on capital, which is a significant factor in making an informed decision about a franchise investment.
Training and Resources
Steak n Shake provides comprehensive initial training for new franchisees. This program offers an immersive experience over four to six weeks, primarily at their training facility in Indianapolis, Indiana. Resources cover all facets of restaurant operation. Steak n Shake recommends franchisees actively participate in all training modules to best understand brand standards.
Legal Considerations
Legal considerations for a Steak n Shake franchisee are outlined in the Franchise Disclosure Document (FDD) and the Franchise Agreement. Note that this franchise discloses lawsuits and/or bankruptcy information in its FDD, which may impact your evaluation. Subscribe now to access more details and be sure to consult a qualified attorney before proceeding.
Challenges and Risks
A franchisee operating a Steak n Shake model might encounter considerations like navigating a local market with established burger and shake competitors, managing the operational demands of a full-service menu with breakfast, lunch, and dinner offerings, and ensuring consistent product availability through the brand's established supply chain. These factors represent areas requiring careful planning and execution for successful business management.
Franchise Datasheet
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