Many resources say that the franchise business is one of the safest ways of making a profit. However, not all franchise has high profitability.
Some have low potential while others have high; it all depends on the business structure, brand and investment cost, and expenses.
So before investing in any franchise, check all the significant aspects. This article is all about this quick-service restaurant known as Steak’ N Shake.
Here we will discuss the facts like how much does a Steak’ N shake franchise owner make and its investment cost, profitability, fees, requirements, and so on. So, let’s begin.
What Is Steak’ N Shake?
Steak “N Shake is an American quick-service restaurant known for its three premium items: steak burgers, milkshakes, and fires.
In 1934, Steak’ N Shake was founded in Illinois by Gus Belt. He came up with the concept of premium burgers and shakes.
For almost 8 Decades, they served their burgers and milkshakes to customers.
They have started offering a business opportunity to investors without making a significant financial investment.
Steak ‘N Shake also provides a training program, but they also have some requirements for ideal candidates.
Moreover, they also give 15% off on the initial franchise fee as a venture discount only for eligible candidates.
How Much Does A Steak’ N Shake Franchise Owner Make?
As per records, the average sales of Steak’ N Shake is approximately $939,990,000 sales per year.
An individual Steak’ N Shake franchise owner’s sales is around $1,027,000. But this profit ratio varies on the locations and which type of franchise you own.
Moreover, the profit margin is a bit low. As per records, an individual franchisee can earn only $161,079 as a profit.
What Is Steak’ N Shake Known For?
Steak’ N Shake serves classic fast food. But their burger and shakes are much better than any other fast-food stand.
They always serve premium quality products with good taste. The aim of Steak’ n Shake is to serve premium quality burgers and shakes, and they have achieved success in their aim.
Currently, they have locations in 28 states. And the most important thing is that their burger includes no preservation, antibiotics, or hormones and is always crafted from high-quality meat.
These are the following items for which Steak ‘N Shake is known:
- Original Double’ n Cheese Steakburger.
- Bacon Cheese Fries.
- White Truffle Prime Steakburger.
- Patty Melt.
- Classic Steak Frank.
- Frisco Melt.
- Jalapeno Crunch Steakburger.
- Chicken Sandwich.
Pros & Cons Of Steak’ N Shake Franchise
Pros Of Steak’ N Shake Franchise
- High potential for growth
- Provide Training
- On-going corporate support
- Guaranteed $100,000 salary to new franchisee in the first year
- Great marketing and advertisement strategies.
Cons Of Steak’ N Shake Franchise
- Does not have 100% ownership rights
- Not a passive investment opportunity
- Not Sustainable
- Not healthy
- Low-profit margin
Is Steak’ N Shake A Profitable Franchise?
Steak’ N Shake franchise is one the lowest-investment cost franchise as compared to other fast-food restaurants franchise.
If we talk about profitability, so yes, it has the potential to make a decent amount of profit.
However, the profit margin is low, but due to high sales, you can generate good revenue.
Subsequently, Steak’ N Shake has a high potential for growth because of its good and premium quality of food.
Moreover, the franchisor also guarantees to provide a $100,000 salary to the new franchisee in the first year to motivate the business. To conclude, Steak’ N Shake is a profitable franchise.
As we discussed above, Steak’ N Shake is a fast-food restaurant. It is the best option for those who are willing to invest in a fast-food restaurant but has a low budget.
If we compare another fast-food restaurant with Steak’ N Shake, then the cost of a franchise is low.
However, Steak’ N Shake never require any experience but still have some condition for ideal franchise candidates.
So there are some downsides you might face while buying this franchise, but on the other hand, the franchise has the potential to earn a decent profit.
Read: Top 50 Franchise
Frequently Asked Question
How much profit does the Steak 'N Shake franchise make?
An individual Steak’ N Shake franchise owner can make around $161,079 as a profit.
How many Steak' N Shake franchises are there?
Steak ‘N Shake has more than 600 units across the U.S.
How much does it cost to own the Steak' N Shake franchise?
An initial investment required to open the Steak’ N Shake Franchise is $1,476,250 to $2,420,500.
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.