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Updated RecentlySteak n Shake vs Fatburger Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Steak n Shake vs Fatburger including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $672,000 - $1,835,000 | $498,100 - $850,600 |
| Franchise Fee | $25,000 - $40,000 | $50,000 |
| Royalty Fee | 5.5% | 6% |
| Advertising Fee | - | 2% |
| Year Founded | 1934 | 1952 |
| Year Franchised | 1945 | 1990 |
| Term Of Agreement | - | 5 Year |
| Term Of Agreement | - | 5 Year |
| Renewal Fee | - | - |
Business Experience Requirements |
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| Experience | - | * Net Worth: $1,500,000.00 * Liquidity: $500,000.00 * For multi-unit deals, must meet all FCCR and capital requirements * Financial resources to support the business with debt/equity when necessary * Ability to develop additional restaurants (if required) * Excellent personal/professional and financial references * Clear credit and criminal background checks * Leadership standing in the community through participation with civic organizations * Understands the “business of running the business” * Sound business management skills * Mid-level entrepreneur spirit * Demonstrates leadership skills * Ability to manage and direct human resources under a proven system * Has an understanding of how to develop leadership skills on his/her team * Demonstrates a strong work ethic and a high level of integrity * Customer focused and responsive to customer needs * Possesses a strong decision-making ability * Effective communication skills * Ability to follow directions * Has a passion and enthusiasm for the business * Interested in working in a fast-paced and highly charged industry * Possesses a drive and desire to succeed |
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | No/No | -/- |
| Start-up Costs | No/No | -/- |
| Equipment | No/No | -/- |
| Inventory | No/No | -/- |
| Receivables | No/No | -/- |
| Payroll | No/No | -/- |
Training & Support |
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| Training | - | -Proper training is absolutely essential for maintaining a successful operation while maintaining the consistency and integrity of the Fatburger operation and brand. To that end, Fatburger sets rigorous standards for staff development.
-Fatburger provides its franchisees with a detailed and comprehensive curriculum outlining how to operate their Fatburger business. Franchisees will receive thorough instructions in:
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| 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 our 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. | When franchisees join the Fatburger family, they receive the support provided by an organization committed to their success. Fatburger franchisees will also benefit from the experience of a professional management team. Fatburger has developed an effective, systematic process to get our franchisees up and running quickly. That includes architecture and design support, operational support, purchasing support, equipment selection support, training and recruitment support, advertising and marketing support, and real estate support. |
| 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. | -No business can be successful without creative advertising and an intelligent marketing plan. To continually attract a diverse customer base, Fatburger advertising must react faster, be more daring, more innovative, and more focused on the specific community in which each location is situated. Fatburger's past experience has shown this is the only proven method to stay ahead of the competition. -Fatburger's flair for creative advertising and marketing sets us apart from other restaurants. The distinctive history, the L.A. roots, the world famous cooked-to-order burger, and the look and sound of the restaurants, all provide great opportunities for innovative marketing. |
| Operations | - | - |
Expansion Plans |
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| US Expansion | Yes | - |
| Canada Expansion | No | - |
| International Expansion | No | - |
Company Overviews
About Steak n Shake
Benefits of Franchising
The benefits of franchising with Steak n Shake can't be duplicated:
* 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 our 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.
All of these benefits equal a great chance at success in the restaurant business. The only thing missing is you.
About Fatburger
The now famous Fatburger Restaurant had humble beginnings many years ago in the spotless kitchen of Ms. Lovie Yancey. Her guests enjoyed her hamburgers so much that she was encouraged to share her unique recipe with the world. Ms. Yancey took their advice and opened her first restaurant in Los Angeles, in 1952. She called this restaurant "Fatburger," while her loyal customers called it, "The Last Great Hamburger Stand." Now, over 60 years later, the red and yellow sign still holds the same promise. A promise to serve customers a great hamburger prepared fresh daily at every location. Customers will never find a frozen or prefabricated Fatburger in our restaurants.
At Fatburger, we are proud to say that word of mouth has filled our restaurants for over 60 years. Demographically, our appeal is limitless. Our customers come from every walk of life, mirroring the diversity of every community in which we are located. Teenagers, families with young children, singles, senior citizens, and people from all income levels, and ethnic backgrounds love a great burger. They tell their friends and associates about the superb homemade taste, spotless surroundings, friendly atmosphere and courteous service that they experience at Fatburger Restaurants