Steak ‘n’ Shake isn’t fooling around with its refranchising plans. The company announced August 13 it’s looking to deal its 400-plus company units (there were 401 in 2017), to “would-be entrepreneurs who want to be hands-on, single-unit owner-operators” for a paltry initial investment of $10,000. For comparison, the initial franchise fee for a Taco Bell operator is $45,000. It’s $30,000 at Blaze Pizza. Per franchise disclosure documents, the initial investment for a classic Steak ‘n’ Shake runs between $1.6–$2.6 million. “I started my company with $15,000 and built a thriving enterprise,” said Sardar Biglari, CEO of Biglari Holdings, owner of Steak ‘n Shake, in a statement. “I want to provide an opportunity to other entrepreneurs who are highly motivated to excel but lack the financial means. What will be important to become a franchisee is not great capital but great ability. We are seeking to harness the power of entrepreneurs and to create a company of owners.” Steak ‘n’ Shake added that the offering to buy into the company as a franchise partner requires operators to successfully complete a six-month training program. The franchise partner would then get 50 percent of the restaurant’s profits. This is a partnership, shared-profit deal similar to the system Chick-fil-A deploys. Steak ‘n’ Shake is looking to quickly shift its business model from a heavy corporate-owned structure to a system run mostly by single-unit franchisees. The company said this would “achieve operational uniformity by marshaling the efforts and strengths of entrepreneurs.” Founded in 1934 in Normal, Illinois, Steak ‘n’ Shake had 110 franchised units and 401 company-run stores in 2017, which was a total decline of 57 from the previous year. The company posted average-unit volumes of $1,839.51 (in thousands) and had total system-wide sales of $939.99 (in millions). The year before, Steak ‘n’ Shake had 568 total units (415 company-run) after adding 17 restaurants from the previous year. It also had higher AUV ($1.9M), and, naturally with more stores, increased system-wide sales of $1,027 (in millions). – Source: QSR.com.
- Who We Are
Our Mission:
"…to be the highest quality provider of human capital to our clients.”
- What We Do
Human Captial Management Solutions That Work
Being Better often requires assistance from others who can help get your there.
- Employers
Welcome Job Seekers
Our #JobSquad has assembled everything Job Seekers need, to beBetter.
- Job Seekers
Welcome Employers
Our #JobSquad has assembled everything Employers need, to beBetter.
- Blog
Ways for you to beBetter
Tips, tools and perspectives for job seekers, employers as well as general information on ways to beBetter.
- Connect
Get Connected:
Connect easily with our Corporate Office or with any of our Franchise locations.Corporate Office, Coral Springs, FL
(954) 493-9200 info@ariteam.com
Atlanta, GA
(770) 433-2220 iphillip@ariteam.com
Chicago, IL
(312) 780-7510 cwilson@ariteam.com
Dallas - Ft. Worth
(469) 922-2096 eroshan@ariteam.com
Davie, FL
(954) 990-4545 frankc@ariteam.com
Manchester, NH
(603) 825-5520 van@ariteam.com
Simpsonville, SC
(864) 900-2144 matt@ariteam.com
(864) 900-2144 grace@ariteam.com
- Search Jobs
Featured Jobs
- Director of National AccountsDIRECTOR National Accounts -- Commercial Foodservice E&S We need a hard-charging, service-the-heck...
- SALES MANAGER -- FOODSERVICE EQUIPMENT NEW ENGLANDSALES MANAGER -- FOODSERVICE EQUIPMENT NEW ENGLAND We seek a highly motivated...
- LEAD SERVICE TECHNICIAN - MACHINE BUILDERLead Service Technician As a Lead Service Technician, you will collaborate...
- Director of National Accounts
Leave a Reply
You must be logged in to post a comment.