Top Steakhouse Franchise Opportunities for Aspiring Restaurateurs

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

The food industry is projected to reach $899 billion in sales, which bodes well for the steak restaurant sector. With the allure of mouthwatering options like bone-in steaks and flame-grilled steaks, it’s clear why this industry is expected to continue growing.

• READ MORE: See our Franchise Guide

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. Steakhouse franchises generally serve lunch and dinner, allowing you to run your business according to your own schedule.
• Proven business model. Steakhouse franchises have a proven, successful business model that you can follow.

Selecting the Best Steakhouse Franchise: Our Methodology

When selecting the perfect steakhouse franchise, it is crucial to evaluate several key factors that can greatly influence your success as a small business owner or entrepreneur. To assist you in making an informed choice, we have listed these criteria below, ranked on a scale from 1 to 5, with 5 representing the highest level of importance:

• Location and Demographics (5/5): The location of your steakhouse is paramount. Evaluate the area’s demographics, foot traffic, and proximity to potential customers. A prime location can greatly influence your restaurant’s success.
• Quality of Steak and Menu (4/5): The quality of the steak and the diversity of your menu are crucial. Opt for franchises that offer high-quality cuts of meat and a varied menu to cater to different tastes.
• Brand Reputation (5/5): The brand reputation of the franchise holds great importance. Opt for a steakhouse franchise that boasts a strong and positive image, recognized for its quality, service, and overall dining experience.
• Training and Support (4/5): Adequate training and ongoing support from the franchisor are vital. Look for franchises that provide comprehensive training programs, marketing support, and operational guidance to ensure your success.
• Initial Investment and Fees (4/5): Assess the initial franchise fee, startup costs, and ongoing fees. Ensure they align with your budget and financial resources.
• Marketing and Advertising Support (3/5): Consider the level of marketing and advertising support offered by the franchise. Effective marketing can help attract and retain customers, but it’s also essential to have the flexibility to implement local marketing strategies.
• Franchisee Satisfaction (3/5): Collect feedback from existing franchisees to assess their levels of satisfaction. When franchisees are content, it typically reflects a supportive and thriving franchise system.
• Menu Innovation (3/5): Examine the franchise’s ability to innovate its menu and adapt to changing consumer preferences. A steakhouse that introduces new dishes can attract a broader customer base.
• Competitive Landscape (4/5): Analyze the competition in the area where you plan to open your franchise. Consider whether there’s room for a new steakhouse and how you can differentiate yourself.
• Operational Efficiency (3/5): Efficiency in restaurant operations can impact profitability. Choose a franchise that provides streamlined processes and operational tools.

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:

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.

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.

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.

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.

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.

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.

Quaker Steak and Lube

Quaker Steak and Lube, established in 1974, is a well-known restaurant chain that originated from a group of former gas stations. To open a Quaker Steak and Lube franchise, you will need to pay an initial franchise fee ranging from $30,000 to $40,000. Your overall investment will fall between $473,500 and $4,106,000, which includes a royalty fee of 5 percent and an advertising fee of 3 percent.

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.

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.

Ponderosa Steakhouse

To open a Ponderosa Steakhouse, you must have a net worth of $1.5 million and at least $500,000 in liquid assets. The franchise fee is $50,000 for each location, and there is a royalty fee of 5% on gross sales. Additionally, an advertising fee of 2% on gross sales is required. Your total initial investment will range from $1,696,500 to $2,526,500.

• READ MORE: 30 Burger Franchises

More Great Steak Restaurant Franchises

Let’s continue this list with an iconic brand that offers delicious steaks:

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

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%.

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.

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.

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.

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.

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%.

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.

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.

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.

• READ MORE: 20 Fast Food Franchise Opportunities

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.

Ensure that the franchise you select offers both lunch and dinner services, allowing you to sell steaks and manage your business according to 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 amount can differ based on the franchise you decide to partner with and its location. However, the typical initial investment for a steakhouse franchise ranges from $1 million to $2 million, with some franchises necessitating an investment of approximately $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, and provide a good guest experience, you can make a good return on your investment. Marketing will also play a role in your success.

READ MORE:

• See our Franchise Guide
• 30 Burger Franchises
• 20 Fast Food Franchise Opportunities

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This article, "Top Steakhouse Franchise Opportunities for Aspiring Restaurateurs" was first published on Small Business Trends