Are you in the market for a steakhouse franchise? If so, you’re in luck! There are many different steakhouse franchises to choose from. In this post, we’ll take a look at 20 different steakhouse franchises. So, which of these food franchises is right for you? Read on to find out!
What is a Steakhouse Franchise?
It’s a restaurant that specializes in serving steaks. Steakhouse restaurants usually have a wide variety of steak options, as well as other menu items such as seafood, salads, and sides.
The Steakhouse Restaurant Industry in 2022
The overall food industry is expected to reach $899 billion in sales by the end of 2022, providing a boost to the steak restaurant industry. With food as delicious as a bone-in steak or flame-grilled steaks, it’s no wonder the industry is expected to continue growing.
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Why You Should Consider a Steakhouse Franchise
There are many reasons to start a franchise like Great Steak. Here are five of them:
- Steak is a timeless classic. A steak restaurant like the Stoney River Steakhouse will always be in demand because steak is a classic dish that will never go out of style.
- Easy to operate. You don’t need to be a master chef to operate steakhouses and provide amazing service.
- Wide variety of steak options. There are many different types of steaks to choose from, so you can offer something for everyone.
- Flexible hours. Steakhouses are typically open for lunch and dinner, so you can operate your business around your schedule.
- Proven business model. Steakhouse franchises have a proven, successful business model that you can follow.
Top Steakhouse Franchises
Now that we’ve gone over some of the reasons why you should start one of the many steakhouse franchises, let’s take a look at 20 of the best opportunities for qualified franchisees:
1. Ruth’s Chris Steak House
With a laid-back atmosphere, beautiful restaurant design, delicious steaks, and garlic butter mashed potatoes, Ruth’s Chris Steak House is a high-end steakhouse chain with a total initial investment ranging from $2,539,500 to $5,932,500. The franchise fee is up to $150,000 and the royalty fee is 5.0%. The working capital required is $150,000 to $250,000 and you’ll need a net worth of $1 million.
2. Outback Steakhouse
Outback Steakhouse is famous for its Bloomin’ Onion appetizer, full-service bar, and bone-in steaks that are grilled to perfection. To open an Outback Steakhouse, you’ll need a total investment of up to $6 million. This includes the initial franchise fees, which range between $30,000 and $75,000, as well as the royalty fees, which are between 5% and 6% of gross sales. The cost to build a restaurant starts at $830,000.
3. Longhorn Steakhouse
Longhorn Steakhouse is a chain of restaurants owned by Darden Restaurants, Inc. that has an annual average sales volume of $3.3 million per restaurant. The company has over 520 locations and offers franchise opportunities in some areas. The franchise fees for Longhorn Steakhouse will vary depending on the market opportunity, unit-grow potential, and territory.
4. Texas Roadhouse
Texas Roadhouse can be found all around Texas in cities like San Antonio and offers great steak. Founded in 1993, the company requires a liquid capital investment of $200,000 and an investment of $1,600,000 – $3,000,000. The franchise fee for Texas Roadhouse is $40,000.
5. Bonanza Steakhouse
To open a Bonanza Steakhouse, you’ll need a net worth of at least $1.5 million and liquidity of at least $500,000. The initial franchise fee is $50,000 per location, and you’ll also be responsible for paying a 5% royalty fee on gross sales as well as a 2% advertising fee. Bonanza Steakhouse has been in business since 1963 and franchising since 1994.
6. Shula’s Steak House
If you’d like to open a Shula’s Steak House franchise from Don Shula, Hall of Famer and former head coach of the Miami Dolphins, you’ll need to have a total investment of at least $1,224,350. This includes the initial franchise fee of $150,000. You’ll also need to have a working capital of at least $210,000. The royalty fee is 9.0% of your gross sales.
7. Quaker Steak and Lube
Quaker Steak and Lube, founded in 1974, is a popular restaurant chain that began as a series of old gas stations. Opening a Quaker Steak and Lube franchise will cost you between $30,000 and $40,000 for the initial franchise fee. However, your total investment will range from $473,500 to $4,106,000 with a royalty fee of 5 percent and an advertising fee of 3 percent.
8. The Capital Grille
The Capital Grille is a high-end steakhouse chain that is now available for international franchising. With annual average sales per restaurant of $6.8 million, The Capital Grille has received multiple awards and recognitions. Franchisees are required to be well-capitalized to support investment funding.
9. Black Rock Bar and Grill
If you’re looking for a great franchise opportunity, Black Rock Bar and Grill is worth your consideration. With an initial franchise fee of only $50,000 and total investment costs ranging from $1.5 million to just under $3 million, Black Rock is a relative bargain compared to other franchise opportunities in the restaurant industry.
10. Ponderosa Steakhouse
To open a Ponderosa Steakhouse, you’ll need a net worth of $1.5 million and liquidity of $500,000. The franchise fee is $50,000 per location, and the royalty fee is 5% of gross sales. The advertising fee is 2% of gross sales. Your initial investment will be between $1,696,500 and $2,526,500.
More Great Steak Restaurant Franchises
Let’s continue this list with an iconic brand that offers delicious steaks:
11. Great Steak
Starting a franchise restaurant with this company is a great investment opportunity with high potential returns. The franchise fee is $5,600 – $30,000, and the total investment ranges from $132,500 to $593,300. To qualify for a franchise, you’ll need a credit score of 680 and a net worth of $250,000. You’ll also need liquid capital of $120,000. If you’re looking
12. Johnny’s Italian Steakhouse
If you’re looking to invest in a restaurant franchise, Johnny’s Italian Steakhouse is a great option. With a net worth of $5 million and liquidity of $1 million, you’ll have the financial backing you need to get started. The initial franchise fee is $75,000, and the total investment ranges from $1,275,000 to $4,000,000. The royalty fee is 5.0%.
13. Steak Escape Sandwich Grill
Steak Escape Sandwich Grill is a quick-service restaurant specializing in made-to-order steak and chicken sandwiches. It has a franchise fee of only $25,000 and royalty fees that are a low 6% of gross sales. Steak Escape is looking for individuals with a net worth of $400,000 and liquid assets of at least $200,000.
14. Charleys Philly Steaks
If you’re looking for a Philly cheese steak franchise, Charleys Philly Steaks is a great option with a low franchise fee of $24,500. The company has been franchising since 1991 and has an initial investment range of $251,637 to $1,002,700. Royalty fees are 6% and the net-worth requirement is $500,000. The liquid cash requirement is $175,000.
15. Freddy’s Frozen Custard & Steakburgers
Freddy’s Frozen Custard & Steakburgers is a franchisor that has been franchising since 2004. The initial investment necessary to open a Freddy’s franchise is between $641,000 and $2.1 million. The franchise fee is $25,000. Royalty fees are 4.5% of gross sales, and there’s also an ad royalty fee of .375%. Franchisees must have a net worth of at least $1 million and liquid assets of at least $400,000.
16. Keg Steakhouse & Bar
Starting a Keg Steakhouse & Bar franchise can be a lucrative business venture, with an initial investment of $75,000 and a total investment of $4 million to $5.5 million. As a franchisee, you’ll be responsible for paying a 6% royalty fee on gross sales and a 2% marketing fee. Your net worth must be at least $4 million to qualify for this franchise opportunity.
17. Glory Days Grill
If you’d like to open a Glory Days Grill franchise and offer delicious steaks and chicken wings, it’ll cost you between $1.7 million and $2.5 million. You’ll also need to have a net worth of at least $1.5 million and liquid assets of at least $750,000. The initial franchise fee is $50,000, and the ongoing royalty fee is 3%.
18. All American Steakhouse and Sports Theater
Opening an All American Steakhouse and Sports Theater franchise requires an initial investment of between $1,500,000 and $2,500,000. The initial franchise fee is $45,000, and the ongoing royalty fee is 3%. There is also a marketing & technology fee of 0.5%. The net-worth requirement is $1,500,000, and the liquid cash requirement is $350,000.
19. Steak-Out Char-Broiled Delivery
Want to open a Steak-Out Char-Broiled Delivery franchise? Then it’ll cost you between $271,000 and $453,000 for the total initial investment. And you’ll need to have a net worth of at least $379,100 and liquid cash available of $75,000. The franchise fee is $30,000 and the royalty fee is 5% of weekly net sales.
20. Tony Roma’s
Tony Roma’s franchise opportunity has an initial investment range of $1,973,500 to $3,246,000 for a freestanding location. For a conversion or in-line location, the initial investment range is $1,893,500 to $3,121,000. The franchise fee is $30,000 and the royalty fee is 4% of net sales paid monthly.
How to Choose the Best Franchise to Set Up Steak Franchises
There are many things to consider when choosing a steak franchise to work with. Here are four ways you can select the best steak restaurant franchise for yourself:
Menu options.
Look at their menus to see if they have a good variety of steaks. You should also make sure that the franchise you choose offers other menu items such as seafood, salads, and sides.
Look at the location.
Choose a franchise located in a busy area with lots of foot traffic. This will help you attract more customers.
Hours of operation.
Make sure the franchise you choose is open for lunch and dinner so you can sell steaks and operate your business around your schedule.
Your total investment.
Be sure to consider the initial investment and franchise fees when choosing a steak restaurant franchise.
How Much Does It Cost to Open a Steakhouse Franchise?
This varies depending on the franchise you choose to work with and the location, but the average initial investment for a steak restaurant franchise is between $1 million and $2 million with some requiring an investment of about $6 million.
Is a Steakhouse Franchise Profitable?
Yes, a steak restaurant franchise can be profitable. If you choose a busy location, offer a good variety of menu items in addition to your steaks as well as provide a good guest experience, you can make a good return on your investment. Marketing will also play a role in your success.
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This article, "20 Steakhouse Franchise Options" was first published on Small Business Trends
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