Steak ‘N Shake Franchise Cost, Fees & Requirement 2024

Steak and Shake is a popular American fast-food restaurant chain that has been serving classic diner-style meals since 1934. It’s known for its wide selection of premium burgers, steak sandwiches, and hand-spun shakes.

As a franchise, Steak and Shake have been around since the 1940s. The company offers potential franchisees the chance to run their own business while selling delicious food. As a franchisee, you will be able to control your own hours, menu selection, and customers.

If you’re thinking of investing in a Steak and Shake Franchise, there are some things you’ll need to consider first. Read on to learn everything you need to know about the franchise.

Steak 'N Shake Franchise

About the History Of Steak N Shake 

Steak and Shake is a classic American fast-food chain that offers delicious, diner-style meals. It is best known for its premium burgers and hand-spun milkshakes.

As a Steak and Shake franchisee, you’ll have the opportunity to run your own business while selling tasty food to hungry customers. You’ll have control over your hours, menu selection, and customer base.

At Steak and Shake, you will find traditional diner-style favorites like steakburgers, hot dogs, grilled cheese sandwiches, chicken tenders, and more. All their burgers are made from 100% beef with no fillers or preservatives added – just delicious beef patties cooked to perfection with your choice of toppings. They also offer fresh salads and side dishes such as French fries, onion rings, and coleslaw.

Their signature milkshakes come in dozens of different flavors ranging from classic vanilla to more exotic options like peanut butter cup and Oreo cookie crunch. All of their shakes are hand-dipped and made with ice cream produced by local creameries throughout the United States.

Steak and Shake franchises not only serve delicious food but also provide an inviting atmosphere that makes customers feel welcome twenty-four hours a day, seven days a week. All this adds up to a franchise opportunity that’s hard to beat.

Steak and Shake Franchise History

Steak and Shake Franchise History

Steak ‘n Shake is one of the most iconic restaurant chains in America, with a rich history that dates back to 1934. Founded by Gus Belt in Normal, Illinois, the chain began as a combination gas station and roadside diner.

While Belt’s original vision was to serve hot dogs and hamburgers, Steak’ n Shake quickly evolved and began offering steakburgers and milkshakes, thus giving the restaurant its iconic name. 

After the restaurant achieved tremendous success, Belt acquired a set of Goal Post restaurants in central Illinois and converted them to Steak’ n Shakes. He also included curb service, which was very popular at the time.

The franchise was purchased by Biglari Holdings in 2008, and under their ownership, the chain has continued to expand throughout the United States and beyond. Today there are over 550 Steak ‘n Shake restaurants across 28 states, with more locations opening every year.

With its delicious food, friendly atmosphere, and rich history, the Steak ‘n Shake Franchise is an excellent opportunity for entrepreneurs looking to start their own businesses.

Steak ‘N Shake Franchise Model 

Cost Or FeesAmount
Investment$1,476,250 to $2,420,500.
Franchise fee $25,000
Royalty fee 5.5%
Area RequirementN/A
Total Outlets600

How Much Does It Cost To Open a Steak and Shake Franchise?

If you’re looking to invest in a Steak and Shake franchise, then you’ll need to consider the cost associated with setting up your business.

The initial franchise fee for a Steak and Shake restaurant is $25,000. This will cover the cost of training and other related expenses to get your business off the ground.

Depending on the format of your restaurant (quick in-line service, non-traditional, or roadside format), the total initial investment can range from $454,000-$1,199,497. This cost includes everything from the franchise fee to rent, training, and equipment.

In addition to the initial franchise fee and investment, you’ll also be expected to pay a 5% royalty fee as well as a 3% advertising fee every month. These fees are used to help promote your business and advertise the brand as a whole.

Steak and Shake offers a special deal for a few select franchisees (also known as Franchise Partners) that will reduce the total investment to just $10,000. To qualify for this opportunity, you’ll need to prove that you have no other active business ventures and commit to being a full-time, hands-on operator of your restaurant.

Steak and Shake Franchise Requirements

To become a Steak and Shake franchisee, you must have the right combination of skills and passion.

Potential franchisees must undergo 6 months of on-the-job training to gain familiarity with operational procedures, safety standards, and customer service etiquette. This training is designed to ensure that all franchisees have the skills and knowledge necessary to run a successful business.

In addition, all franchisees must be capable of running day-to-day operations and monitoring performance standards. Most importantly, potential franchise owners need to possess a passionate attitude towards excellence in customer service and commitment to high-performance goals.

Once you meet these requirements, you can be eligible to become a Steak and Shake franchise owner and all the profit it owns.

Steak and Shake Franchise Training And Support

Steak and Shake Franchise Training And Support

Steak and Shake provide comprehensive training and support to franchisees who are looking to open a restaurant.

All franchisees must complete 6 months of on-the-job training before their Steak and Shake restaurant is open for business. This training consists of both classroom and on-the-job experience that will help the franchisee gain familiarity with operational procedures, safety standards, customer service etiquette, and more.

In addition to the initial 6 months of training, Steak and Shake offer ongoing support from field-based operations and administrative services teams. This includes dedicated business consultants who can help franchisees create custom plans to achieve their goals and objectives. The consultants will also help analyze financials and provide objective advice when needed.

Steak and Shake Franchise Terms Of Agreement & Renewal

The Steak and Shake Franchise terms of agreement and renewal are designed to ensure that franchisees continue to operate their business at the highest level of quality while also providing them with long-term stability.

The initial term is 20 years, with a renewable option if the franchisee is performing as expected. In order to be eligible for renewal, franchisees must meet all the requirements laid out by Steak and Shake, such as maintaining high standards of customer service and operational excellence.

If a franchisee meets all the criteria for renewal, they will be required to pay a renewal fee equal to 50% of the initial franchise fee ($12,500). This fee covers the costs associated with training new workers and updating equipment to provide customers with the same excellent experience they have come to expect from Steak and Shake restaurants.

Steak and Shake Franchise Obligations And Restrictions

Franchisees are responsible for providing a safe, clean, and healthy environment in which customers can enjoy their meals. This includes regular restaurant inspections to ensure that all operational procedures are followed according to Steak and Shake’s high standards.

In addition, franchise owners must abide by the company’s pricing policy and maintain an appropriate inventory of food, beverages, and supplies. They must also adhere to local health codes and regulations regarding food safety, sanitation, and hygiene.

Finally, franchise owners are only allowed to sell and advertise Steak and Shake products. They are not allowed to sell any other type of food, beverages, or merchandise under the Steak and Shake brand name unless they have received explicit permission from the company.

Steak and Shake Franchise Financial Assistance

Steak and Shake do not provide direct financial assistance to franchisees, nor does it guarantee any form of loan or financing.

However, the company does have a few options that may help franchisees finance their business.

For example, select franchisees, known as Franchise Partners, have the opportunity to invest only $10,000 in order to take part in the company’s ownership program. This is a significant saving compared to the typical $25,000 franchise fee, not to mention other start-up costs that go upwards of $1,000,000.

However, only a select few applicants are chosen to become Franchise Partners, so those looking to open restaurants should be prepared to pay the full franchise fee and other associated costs.

If opening a fast food franchise appeals to you, consider the Fatburger Franchise, Shake Shack Franchise, Quizno’s Franchise, Slim Chickens Franchise, or Culver’s Franchise as viable options.

Steak N Shake Comparison

CompanySteak N Shake Five Guys Burgers
Founded In19341986
Initial Investment$1,476,250 to $2,420,500$306k to $641k
Total Outlet6001550
Annual Revenue$263.14 million$1.711 Billion

Frequently Asked Questions 

What is the annual revenue of a Steak 'n Shake franchise?

The corporation has an annual revenue of $939,990,000 on average.

What is the total number of franchise locations?

There is 183 franchised Steak ‘n Shake sites in the United States as per the 2020 Franchise Disclosure Document.

Does Steak' N Shake Offer a Franchise?

Steak ‘n Shake is a quick-serve restaurant serving premium products, and yes, it offers a variety of franchise opportunities to entrepreneurs.

How much does a Steak' N Shake Franchise Cost?

To buy a Steak’ n Shake franchise, you’ll require an investment of $1,476,250-$2,420,500 and $25,000 as an initial franchise fee.

Who is the owner of Steak N Shake?

The owner of Steak N Shake is Biglari Holdings Inc. The company was founded by Sardar Biglari in 2006 and is based in San Antonio, Texas. The parent company holds a majority stake in Steak N Shake, making it the primary owner. Before its acquisition by Biglari Holdings, Steak N Shake had been owned by various companies since its founding in 1934.

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