Famous For The Original Steakburger & Hand-Dipped Milk Shakes!
Steak 'n Shake has developed tremendous brand strength and an extremely loyal following since its founding in Normal, Illinois, 1934. Today, this 77 year-old classic American brand which pioneered the concept of premium Steak Burgers and hand-dipped milkshakes recently revitalized its franchising program and is seeking single and multi-unit operators to expand its network of nearly 500 QSR locations, in 22 states.
Building upon its current best-in-class string of 10 consecutive quarters of positive same store sales growth despite the Great Recession, Steak 'n Shake offers potential franchisees a wide range of investment and best-in-class aesthetic design options, including Steak 'n Shake Signature, a new smaller-footprint format, well-suited for shopping centers. Steak 'n Shake Signature offers a low investment option, and a more simplified operation.
Territories in the Western, upper Midwestern, Southern and Northeastern states are mostly or completely available. The company is actively seeking single and multi-unit operators, continually adding new stores across the United States as well as internationally.
Company History
Steak 'n Shake was founded in February, 1934 in Normal, Illinois. Gus Belt, Steak 'n Shake's founder, pioneered the concept of premium burgers and milkshakes.
For over 75 years, the company's name has been symbolic of its heritage. The word "steak" stood for Steakburger. The term "shake" stood for hand-dipped milkshakes. Gus was determined to serve his customers the finest burgers and shakes in the business. To prove his point that his burgers were exceptionally prime, he would wheel in a barrel of steaks (including round, sirloin, and T-bones) and grind the meat into burgers right in front of the guests. Hence arose the origin of their famous slogan,
"In Sight It Must Be Right."
After 77 years, Steak 'n Shake continues their tradition of serving the country's best, freshest, and tastiest burgers and shakes.
Steak 'n Shake posted one of the strongest sales performances in the restaurant industry during 2010. In addition, it was the recipient of NRN's Golden Chain Award. With an average unit volume approaching $1.6 million, the company posted an increase in same-store sales of 7.5% which was on top of a 4.1% increase in 2009. Steak 'n Shake has clearly become the dominant brand in the premium burger and milkshake segment.
| Total Number of Units: |
489 |
| Franchised Units: |
76 |
| Year Established: |
1934 |
| Franchising Since: |
1939 |
| Awards: |
NRN's Golden Chain Award 2010 |
Benefits of Owning Your Franchise
Steak 'n Shake, under the ownership of Biglari Holdings, have succeeded in attaining exceptional, industry-leading financial results.
This commitment to quality spawned Steak 'n Shake's now famous slogan - "In Sight It Must Be Right." Following in Gus' unique footsteps, Steak 'n Shake continued to showcase the high-quality ingredients of his famous Steakburgers, hand-dipped milkshakes and shoestring fries for all guests to enjoy.
For more than seven decades, the Steak 'n Shake brand has built a cult following with IMPRESSIVE RESULTS:
- More than 275,000 guests served daily
- 100 million Steakburgers served annually
- 50 million milkshakes enjoyed each year
If you are interested in investing and operating the best premium burger and milkshake brand, Steak 'n Shake is the business for you! Actively seeking single and multi-unit operators.
What's Offered:
- Brand strength and longevity
- A range of investment options
- Strong unit economics
- Unmatched systems and support
- Striking new designs and high-performing operations
- Extraordinary customer value and quality
Steak 'n Shake achieved exceptional results -
one of the best in the restaurant industry -
in fiscal 2010.
- Increase in company same-store sales of 7.5%
- Company revenues of nearly $700 million
- Company average unit volume of nearly $1.6 million
Franchise Requirements:
Steak 'n Shake has two alternatives to build out a new restaurant, each spotlighting a range of investment options and floor plans:
1) Free Standing Building:
- Square Footage - 3,400 square feet with drive-thru
- Land - Approximately one acre
Dining Area and Menu:
- Dining area of 94 seats plus a quick serving drive-thru
- Open 24 hours, seven days a week, with full menu
2) Steak 'n Shake Signature
A new format that provides prospective franchisees with the opportunity to own a Steak 'n Shake at a less costly investment, smaller footprint, and a more simplified operation centered on signature menu items - This new rapid counter service model is ideal for shopping centers:
- In-Line 2,000 square feet / Signature menu with more than 50 seats
- Non-Traditional 500-800 square feet / Signature menu with common area seating (E.g. food court, airport)
Financial Investment
Steak 'n Shake is seeking qualified single and multi-unit operators. They are selective in awarding franchisee agreements to those with specific qualifications:
- A passion for excellence - fanatical about pleasing customers
- Commitment to high performance and to delivering quality products
- Dedication to superior guest service
| Investment Range |
Classic
Free Standing |
Steak 'n Shake Signature |
Steak 'n Shake Signature Non-Traditional |
| Total Initial Investment: |
$1.2 million-
$1.75 million |
$650K-$1.1 million |
$450K-$800K |
| Franchise Fee: |
$40K |
$25K |
$25K |
| Liquid Capital Required: |
$500K |
$200K |
$200K |
| Net Worth Required: |
$1 million |
$400K |
$400K |
| Financial Assistance: |
No |
No |
No |
| Start-Up Capital: |
$42K-$200K |
$42K-$200K |
$42K-$200K |
Training and Support
With an extremely disciplined business plan and a talented
management team, Steak 'n Shake have created staunch,
workable systems to assist franchisees in managing and operating their restaurants. Specifically, these systems and tools make it easier for franchisees to run and manage their restaurants, to create greater efficiency and to assist the owners in selecting and training team members.
The Steak 'n Shake Support Center team is ready to work with you, as you begin your journey opening your first restaurant.
Steak 'n Shake Offers Franchisees:
- In-restaurant training with seasoned staff
- Support for ongoing, field-based operations
- Proprietary operations and administration tools
- Real estate selection assistance
- Creative and powerful marketing
Prior to opening a Steak n' Shake restaurant, franchisees and up to five of their managers are provided with 12 weeks of restaurant training, which will take place at the certified Steak 'n Shake training restaurant.
During Initial Training Franchisees Will Learn:
- Guidance on hiring and training employees
- Ordering initial inventory and testing equipment
- Day-to-day operations of Steak 'n Shake restaurants
Steak n' Shake operations will also provide pre-opening and opening support of all new Steak n' Shake restaurants. This includes designating a field-based operations manager to consult each franchisee on their Grand Opening and day-to-day operations. Once a new Steak 'n Shake restaurant is up and running, franchisees will continue to receive ongoing support through the duration of their franchise agreement.
| Does Corporate Assist in Site Selection: |
Yes |
| Does Corporate Provide Advertising and Marketing (Local, National): |
Yes |
| Does Corporate Provide Continued Training: |
Yes |
Steak 'n Shake Classic Restaurant Site Condition/Location Requirements:
Model 1: Typically 3300-3600 square footage
Model 2: Typically 2000-2500 square footage
Electrical, Gas Service, Telephone, Plumbing, Fire Sprinklers, Fire Alarm, Domestic Water Service, Sewer Lines
Top 35 Target Market Areas:
|
Alabama |
Connecticut |
Kansas |
Nebraska |
North Carolina |
South Carolina |
Virginia |
|
Arizona |
Delaware |
Louisiana |
Nevada |
Oklahoma |
Tennessee |
Washington |
|
Arkansas |
Florida |
Maine |
New Jersey |
Oregon |
Texas |
Washington DC |
|
California |
Georgia |
Minnesota |
New Mexico |
Pennsylvania |
Utah |
West Virginia |
|
Colorado |
Iowa |
Mississippi |
New York |
Rhode Island |
Vermont |
Wisconsin |
Testimonials:
"Opening a Steak 'n Shake restaurant in a shared building will allow us to manage costs more effectively. The Menu of Venues provides us with unprecedented flexibility to be more creative in our site selection while reducing our overhead."
- Phillip McIntosh; Franchisee - Oklahoma City, OK
"The training provided by Steak 'n Shake was fantastic. Managers were sent to training prior to the store opening and if they felt they needed more education, the company sent managers to other stores for extra experience."
- Wayne Robinson - Rome, GA
"The Steak 'n Shake training and support team is fantastic. They jumped in when we needed assistance or additional training and backed off when we were able to move forward on our own within the system. There are always challenges in opening a new restaurant, but with each hurdle, we felt strong support from the Steak 'n Shake brand. Overall, our organization has been ecstatic with the Steak 'n Shake process."
- Joe Mangano - Fredericksburg, VA
"By becoming part of the Steak 'n Shake franchise system, I am aligned with a brand that helps franchisees secure their future and I do not worry about the turmoil of the future economy. My son and other family members have also joined the company to secure their own futures. I have always had an entrepreneurial spirit and working with Steak 'n Shake has helped me to accomplish my goal of owning my own franchise."
- Paul Ledgard - Kansas City, KS