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How Much Does It Cost to Open Steak and Shake Franchise?

Do you want to start a restaurant by buying Steak & Shake franchise? If YES, here is how much it cost to open a Steak and Shake franchise and the requirement. Steak ‘n Shake Operations, Inc. (doing business as Steak ‘n Shake) is an American casual restaurant chain concentrated primarily in the Midwestern United States with locations also in the South, Mid-Atlantic and Western United States, Europe, and the Middle East.

Typical restaurant locations have sit-down, drive-thru and front-window service, resulting in a hybrid of fast-food to-go service and diner-style sit-down service. Many Steak ‘n Shake restaurants are open 24 hours a day, seven days per week. The menu features primarily burgers and hand-dipped milkshakes, though other entrees, side items, and drinks are also available.

Today, Steak ‘n Shake restaurants are located in Alabama, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Mississippi, Missouri, Nebraska, Nevada, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, Washington DC, and West Virginia.

Types of Steak and Shake Franchises Available

Please note that Steak ’n Shake® has alternatives to build out a new restaurant franchise, a range of investment options and floor plans: conversions, existing in-line space, and full ground up construction are all ways to build your new successful restaurant.

  • Steak ‘N Shake Classic Franchise

The new Steak ‘n Shake design entertains guests by providing the theater to showcase the production of their famed made-to-order Steakburgers and tasty hand-dipped milkshakes. Conversion opportunities exist to develop a Classic restaurant franchise location.

Square Footage:

  • Building – 3,315 – 3,800 square feet with drive-thru
  • Land – .7 acres – 1 acre
  • Dining Area & Menu:
  • Dining area of 99 seats plus a quick serving drive-thru
  • Open 24 hours, seven days a week, with full menu

Limited-Menu, In-Line Burger Franchise Concept

This new format provides prospective franchisees with the opportunity to own a Steak ’n Shake restaurant franchise at a less costly investment, smaller footprint, and a more simplified operation centered on limited menu items. This new more rapid counter service model is ideal for lifestyle centers, universities, shopping centers and urban centers.

Square Footage:

  • In-line: 2,000 – 2,500 square feet
  • Dining Area & Menu:
  • In-line: Limited menu with 40+ seats
  • Drive-Thru: If possible

Non-Traditional Restaurant Franchise Development

Unique restaurant franchise development opportunities exist to serve captive audiences in airports, train stations, toll plazas, casinos, and other venues where there are hungry Steak ‘n Shake lovers.

Square Footage:

  • Non-Traditional: 500 – 800 square feet
  • Drive-Thru: If possible
  • Dining Area & Menu:
  • Non-Traditional: Limited menu with common area seating shared by other shops or fast food franchises (e.g. food court or airport)
  • Drive-Thru: If possible

Financial Requirements and How Much It Cost to Buy Steak and Shake Franchise

The estimated investment required to open a Steak n Shake Franchise is between $672,000-$1,835,000. There is an initial franchise fee of ,000-,000 which grants you the license to run a business under the Steak n Shake name.

Individual Unit Costs

  • Initial Investment: $672,000-$1,835,000
  • Initial Franchise Fee: $25,000-$40,000
  • Royalty Fee: 5.5%
  • Advertising Fee: N/A

Steak ‘n Shake Classic Restaurant Franchise: $1,375,000 – $2,135,000

Limited-Menu, In-Line Burger Franchise In-Line: $475,000 – $1,385,000

Non-Traditional Franchise: $250,000 – $750,000

How to Apply and Get Steak and Shake Franchise

If you are cool with the requirements and finance involved in acquiring this franchise, then you need to follow these steps;

  • Fill the application at the website for opening a store. You need to include your name, address, city and state. You will need a phone number and email address. Then choose the amount of capital you have to invest.
  • Wait for the email that confirms that your application was received and is being reviewed. This email will tell you if you will be approved for the location. It will also go into more specifics regarding the financing. You will be asked to schedule a time for an associate to call you and talk more.
  • Ensure to have your financial papers ready when you have your phone conversation. This is when you will find out if you have enough money to open the store or if you will need financing. Please note that for a total investment of $10K, selected franchisees (who they call Franchise Partners) are granted the rights to operate a franchised Steak ‘n Shake restaurant business. This opportunity requires that the individual be free of any other active business ventures and operate the restaurant on a full-time hands-on basis.
  • If you need help with financing, you can apply for an SBA prequalified loan through the website.
  • Note that approval is expected to be quick once you meet the requirements. You should already have a building with all the hookups. After you are approved, the organization will start sending fixtures and merchandise to your building.
  • You will then be mandated to attend a workshop at the headquarters before the opening of your store. Steak ‘n Shake Franchise Partners must successfully complete an extensive, multi-week training program prior to taking over their business. With robust franchise support available, Steak ‘n Shake Franchise Partners are equipped to handle decisions and reap the rewards of achieving the American Dream.

Benefits You Stand to Gain When You Purchase a Steak and Shake Franchise include;

  • Support

Unparalleled Operations Support – A Steak n Shake Manager of Field Operations will help you open your restaurant and will be available for consultation with day-to-day operations. To help ensure a smooth restaurant opening experience, Steak n Shake will provide your first training hours via seasoned Steak n Shake trainers/staff.

You will also receive their Operating Standards System, Manager-in-Training and Management Development Programs. Through your Manager of Field Operations, you will have the multi-functional resources of the Steak n Shake Company working on your behalf.

  • Marketing

World Class Marketing – The Steak n Shake marketing is directed toward building brand loyalty and is not price-driven or reliant on low price discounting. Steak n Shake’s television and print marketing are product-benefit directed, showing why Steak n Shake is superior to fast food alternatives with a fun, irreverent, tongue-in-cheek humorous approach.

Sample television spots are available on this website for your viewing pleasure. The Marketing System is user-friendly and designed for the success of Franchisees. Other benefits are;

  • Proven Concept – The Steak n Shake concept has withstood all types of economic circumstances and continually emerged stronger and stronger.
  • Growing – Since 1996, Steak n Shake system-wide sales have grown from $268 million to $549 million. In the past decade, the chain has doubled in size.
  • Huge, Untapped Development Potential – Steak n Shake currently operates over 490 restaurants in just 20 states. Looking ahead, we forecast that Steak n Shake has the potential to develop over 1,000 units nationwide.
  • Unique Niche Positioning – There is no single offering that is a head-on alternative to their restaurant concept. Steak n Shake serves a distinct niche in the mid-scale, casual dining segment of the restaurant industry.
  • Core Products that Generate a Strong Loyal Following – The core of the Steak n Shake menu includes STEAKBURGERS, thin and crispy French Fries, Chili, and Hand-dipped Milk Shakes.
  • Product Development – Steak n Shake has a pipeline of new products that build on core products consumers love. Recent innovations have included new Side-by-Side Milkshakes and Sippable Sundaes.
  • Future innovations will include more milkshake innovation, burger news, and health conscious offerings.
  • Oversee all aspects of a 24-hour restaurant
  • Ensure that their patrons are served the highest quality burgers and shakes along with extending them great service
  • Are a “hands on” leader
  • Are a results-oriented self-starter
  • Have a servant heart committed to improving the lives of others
  • Become a Franchise Partner with minimal investment
  • Earn 50% of restaurant profits
  • Guaranteed Minimum $100k First Year*
  • Established Company Restaurants
  • Guaranteed Minimum $100k First Year*
  • Turnkey system to assist new and seasoned restaurant Operating Partner franchisees in managing and operating their restaurants
  • On the job extensive training
  • Day-to day operations of Steak ‘n Shake Restaurant prior to becoming a franchisee
  • Support for ongoing, field-based operations
  • Proprietary operations and administration tools
  • Creative and powerful marketing support