Great Steak
Food & Beverage · Quick-Service Restaurants
- Active units
- 25
- Royalty
- 6.0%
Franchised, year-end 2023
of weekly Net Sales
About Great Steak
Great Steak is a beloved brand that has been serving up delicious cheesesteaks since its founding in 1982 by two brothers who were inspired by a trip to Philadelphia. With over 50 locations nationwide, Great Steak is a premier cheesesteak franchise that has captured the hearts of customers looking for authentic American comfort food. The brand's success can be attributed to its focus on high-quality ingredients and dedication to creating the best cheesesteaks every day.
Great Steak stands out for its simplicity, offering classic and innovative cheesesteaks that cater to a wide demographic, especially appealing to Millennials. The brand's average ticket price is affordable, ranging from $8-$10, making it accessible to all. With a straightforward business model and no previous restaurant experience required, owning a Great Steak franchise is a great opportunity for entrepreneurs looking to invest in the booming sandwich sector. Contact us today to learn more about this iconic brand and how you can be a part of the Great Steak family.
Key terms
- Franchise fee
$30k
- Second and subsequent traditional location
Initial Franchise Fee reduced to $17,500
- First non-traditional location
Initial Franchise Fee $9,500
- Second and subsequent non-traditional location
Initial Franchise Fee reduced to $5,000
- Brand fund
1.0% of Net Sales
- Footprint
600 – 1,200 sq ft
- Veteran discount
20.0% off franchise fee — 20% discount on the Initial Franchise Fee for Eligible Military and 501(c)(3)
Brand Percentile Rankings
Growth
- Total locations25
Franchised units open at year-end
- New openings2
Gross new units opened during the calendar year
- 1-year unit growth rate-3.8%
Net unit growth versus prior year
- 3-year unit CAGR-10.2%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio2.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$399k
Midpoint of estimated initial investment range
↓ Lower is better - Time to open9 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate6.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Location footprint
Showing 23 of 27 mapped locations
Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.