Should I open or buy a Great Steak franchise in 2027?
Published June 13, 2026 · Updated June 13, 2026
Yes for an operator who wants a cheesesteak franchise in high-traffic venues — Great Steak offers a proven food-court cheesesteak concept at moderate capital, but it depends heavily on mall/venue traffic, which carries structural risk. Great Steak (The Great Steak & Potato Company), founded in 1982, franchises cheesesteak-and-fries restaurants primarily in mall food courts and high-traffic venues, serving grilled cheesesteaks, fries, and sandwiches with on-display cooking. The 2026 FDD lists a franchise fee around $25,000-$30,000, total Item 7 investment of roughly $200,000 to $400,000, a royalty near 6%-7%, and a marketing fee. Mature units gross $400,000-$900,000, with owners clearing $60,000-$170,000. Its appeal is a proven food-court concept, high throughput, display cooking, and an established brand; the challenges are dependence on mall/venue traffic (structural retail risk), food-court lease economics, labor, and limited format flexibility.
The Real Numbers
A Great Steak operates as a mall-food-court unit (600-1,000 sq ft) with display grilling of cheesesteaks and fries, driving high-throughput impulse traffic in busy venues. Economics depend heavily on the host mall's traffic and food-court lease.
| Line Item | Low | High | Notes |
|---|---|---|---|
| Franchise fee | $25,000 | $30,000 | Per 2026 FDD |
| Buildout / food-court space | $120,000 | $250,000 | Food-court fit-out |
| Equipment & grill | $50,000 | $110,000 | Griddles, hood, POS |
| Signage & decor | $12,000 | $32,000 | Food-court branding |
| Initial inventory | $8,000 | $20,000 | Food + packaging |
| Initial marketing | $8,000 | $22,000 | Grand opening |
| Training & travel | $8,000 | $22,000 | Operator + staff |
| Working capital | $22,000 | $60,000 | First 3 months |
| Total Item 7 | ~$200,000 | ~$400,000 | Per 2026 FDD |
| Royalty | ~6%-7% of gross | ||
| Marketing fee | ~1%-2% of gross |
Revenue reality: mature units gross $400K-$900K with owners clearing $60K-$170K. Great Steak's strengths are a proven food-court cheesesteak concept, high throughput, display cooking (the aroma and visible grilling draw impulse traffic), and an established brand. The critical dependency is mall/venue traffic — a structural risk as enclosed-mall foot traffic faces long-term pressure in many markets (though top-tier malls remain strong). Food-court lease economics (percentage rent, common-area fees) and labor also matter. Operators in high-traffic, top-tier malls or strong non-traditional venues with cost control perform best; declining malls are a real risk. The decisive factor is venue traffic and trajectory.
Who Wins With This Business
- Capital required: $200K-$400K, with $80,000-$140,000 liquid.
- Time commitment: full-time food-court operator; multi-unit potential.
- Skills: high-throughput QSR operations, display cooking, and cost control.
- Geographic fit: high-traffic, top-tier malls or strong venues.
- Lifestyle fit: hands-on or multi-unit food-court operator.
The winners are operators in high-traffic, top-tier venues who manage throughput, labor, and lease economics.
Who Loses With This Business
- Operators in declining or low-traffic malls (structural risk).
- Those who underestimate food-court lease economics.
- Owners who can't sustain high-throughput display cooking.
- Buyers wanting format flexibility (largely food-court-bound).
- Those exposed to a single weak mall.
2027 Market Conditions
- Demand: cheesesteaks and display cooking have durable food-court appeal.
- Structural risk: enclosed-mall traffic faces long-term pressure (top-tier malls hold up).
- Throughput: high-volume, impulse-driven model.
- Competition: other food-court QSR, cheesesteak concepts.
- Lease: food-court economics (percentage rent, CAM) affect margins.
The 90-Day Decision Tree
- Day 1-20: Read the 2026 FDD and Item 19 economics.
- Day 21-40: Interview operators; ask about AUV, venue traffic, lease terms, and net profit.
- Day 41-60: Validate a top-tier, high-traffic venue — the critical factor.
- Day 61-100: Build and staff the food-court unit.
- Day 101-130: Open and drive high throughput with display cooking.
- Manage food-court lease economics and labor.
- Diversify across strong venues to reduce single-venue risk.
Alternative Plays
- Charleys Philly Steaks — cheesesteaks (in/near library).
- Great Steak / Steak Escape — food-court cheesesteaks (see fr0941).
- Sarku Japan — food-court Asian (in the library).
- Non-mall fast-casual — lower structural-traffic risk (in the library).
- Independent cheesesteak shop — full control, street location.
- Other food-court franchises — adjacent models.
Site Selection and Lease Negotiation Strategy
Securing the right location is arguably the most critical success factor for a Great Steak franchise. The brand’s model is tied to high-traffic venues—primarily regional malls, outlet centers, airports, and college food courts. In 2027, the retail landscape continues to shift, so you must evaluate venues with traffic counts of 1.5 million to 3.5 million annual visitors as a baseline. Malls with declining foot traffic (down 5%+ year-over-year) or high vacancy rates (above 15%) should be approached with caution.
Lease terms for food-court spaces typically run 5 to 10 years, with renewal options. Expect base rent ranging from $4,000 to $12,000 per month, plus common area maintenance (CAM) fees that can add 20-40% to your occupancy cost. Some landlords require a percentage rent clause (e.g., 6-8% of gross sales above a breakpoint). Negotiate for tenant improvement allowances—many developers offer $50-$150 per square foot to build out a food-court kiosk. Also push for a co-tenancy clause that allows you to break the lease if anchor tenants leave or mall occupancy drops below a threshold. This protects you against the structural retail risk inherent in the Great Steak model.
Operational Realities and Labor Management
Running a Great Steak unit is a high-volume, fast-casual operation with a focus on throughput during peak lunch and dinner hours. The display cooking format means your team must work efficiently under customer observation. Typical staffing for a food-court kiosk is 3-5 employees per shift, including a shift leader, grill cook, and cashier. Labor costs typically run 25-32% of gross sales, which is slightly higher than some fast-food peers due to the made-to-order nature of cheesesteaks.
In 2027, labor availability remains a challenge in many markets. Expect to pay $12-$18 per hour for entry-level staff, with shift leaders earning $16-$22 per hour. You’ll need to budget for training costs of $5,000-$10,000 per new unit, covering the initial 2-4 week training program at a company-owned location. Great Steak’s operational system emphasizes speed and consistency—your grill team should be able to produce a cheesesteak in under 90 seconds during rush. Invest in a point-of-sale system with kitchen display screens (cost: $3,000-$6,000) to streamline order flow. Also plan for equipment maintenance reserves of $3,000-$5,000 annually, as grills, fryers, and refrigeration units in high-traffic venues face heavy wear.
Financial Projections and Exit Strategy
While the existing answer covers typical revenue ranges, you need a realistic financial model for 2027. Assume first-year gross sales of $350,000-$550,000 for a new unit, ramping to $500,000-$800,000 by year three as your location builds repeat traffic. Your food cost should run 30-35% of sales, driven by beef, cheese, bread, and potatoes. Combined with labor (25-32%), occupancy (15-22%), and royalty/marketing fees (9-11%), your net profit margin typically lands between 8-15% after year two. That means an owner-operator could expect $40,000-$120,000 in annual profit from a single unit—modest but viable if you run multiple locations.
For exit strategy, Great Steak franchises have limited resale history compared to larger chains. If you want to sell after 5-7 years, expect to fetch 2.5 to 4 times your net profit, or roughly $100,000-$480,000 for a well-performing unit. Buyers will discount for lease risk—a unit with 3+ years left on its lease is worth more. Alternatively, you can expand to 2-3 units to build economies of scale (shared management, bulk purchasing) and sell the package for a higher multiple. Avoid over-leveraging; keep your debt-to-equity ratio under 2:1 to maintain refinancing flexibility.
FAQ
How much does it cost to open a Great Steak franchise? The total investment typically ranges from $200,000 to $400,000, including a franchise fee of $25,000 to $30,000. This covers build-out, equipment, and initial inventory, but actual costs depend on the specific venue and lease terms.
What are the ongoing fees I’ll pay as a franchisee? You’ll pay a royalty of around 6% to 7% of gross sales and a marketing fee, usually 1% to 2%. These are standard for food-court concepts and fund brand support and advertising.
How much can I expect to earn from a Great Steak franchise? Mature units typically generate $400,000 to $900,000 in annual sales, with owner earnings in the $60,000 to $170,000 range. Actual profit varies by location, traffic, and operational efficiency.
Is Great Steak only for mall food courts? Yes, most locations are in high-traffic venues like malls, airports, and stadiums. The concept relies on foot traffic, so non-traditional sites are rare, and lease terms are tied to the venue’s success.
What are the biggest risks of owning a Great Steak franchise? The main risk is dependence on mall or venue traffic, which can decline due to retail shifts or economic downturns. Food-court leases also limit flexibility, and labor costs can squeeze margins.
How long does it take to open and start making money? Opening typically takes 3 to 6 months from signing the franchise agreement to launch. Most new locations reach profitability within 6 to 12 months, but it depends on venue traffic and local competition.
Bottom Line
Open a Great Steak if you want a proven, high-throughput food-court cheesesteak concept with display cooking and an established brand, you can secure a top-tier high-traffic venue, and you'll manage food-court lease economics and labor. Its proven concept, high throughput, and display-cooking appeal are genuine strengths. Skip it if your only options are declining malls, you underestimate food-court lease economics, or you want format flexibility. The decisive factor is venue traffic and trajectory — a structural risk. Validate the specific venue rigorously. For operators in top-tier, high-traffic venues who manage throughput and lease economics, Great Steak offers a proven food-court cheesesteak path — but venue selection is everything.
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Sources
- Great Steak Franchise Disclosure Document (2026 filing) — Items 5, 6, 7, 19, 20
- Great Steak official franchise site — investment range and food-court model
- Entrepreneur Franchise listings — Great Steak
- Technomic — US cheesesteak and food-court segment data 2026
- IBISWorld — Food-Court & Mall Foodservice in the US, 2026 industry report
- Mall-traffic and retail-real-estate trend data (top-tier vs. declining malls), 2025-2026
- Statista — US mall foot-traffic and food-court market, 2025-2026
- International Franchise Association (IFA) — 2027 Franchise Economic Outlook
- Commercial-real-estate reports on enclosed-mall traffic trends, 2026
- Franchise Business Review — restaurant-franchise satisfaction data
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