How to Start a Habit Burger Grill Franchise in 2023 Looking for information about how to open a Habit Burger Grill franchise? Here's what you need to know.
By Entrepreneur Staff Edited by Ryan Droste
Since its inception in 1969, The Habit Burger Grill food franchise has established a respected reputation, praised for its award-winning Charburger and its laid-back, welcoming California essence.
In addition to the signature Charburger, The Habit Burger Grill's trend-forward product innovation sets it apart from competitors in the fast-casual space with fresh salads, handcrafted sandwiches and a unique take on classic sides such as tempura green beans, sweet potato friends, French fries and onion rings. The menu also incorporates entrees featuring line-caught, sushi-grade Ahi tuna, fresh chicken, grilled sandwiches and hand-filleted marinated steak. Along with the emphasis on handcrafted menu items, The Habit Burger Grill difference is based on the uniqueness of its char-grilling over an open flame.
Today, The Habit is a 330+ unit brand in the United States with 11 international locations and a growing global franchise. As the brand continues to grow its presence through a robust franchise and equity development strategy, it is seeking sophisticated restaurant professionals to bring The Habit to their communities.
Operationally, The Habit Burger Grill comes equipped with its unique flavor of char-grilling and a diversified menu that appeals to a broad consumer base. The balanced lunch-dinner day part sales mix works harmoniously alongside a range of store models, including in-line end caps, end-cap drive-thrus and free-standing drive-thrus, all in suburban settings. The brand's flexible footprint provides franchisees with a wide range of real estate models fit for any market, as well as non-traditional venues such as colleges and universities, airports and amusement park complexes.
Related: Franchise 500: Our Definitive Ranking of 2022's Strongest Franchises
On the heels of several years of deep investments in technology, and amid a continuing stream of tech-forward innovations, The Habit Burger Grill has solidified its status as a brand built for today and the future — app and web order sales soared to nearly 40% of revenue in 2020. The brand's all-access, digital customer experience on social, web, mobile app and email platforms provide a strong business layer, in addition to the excellence of the traditional restaurant experience.
Why The Habit Burger Grill?
The Habit Burger Grill is a subsidiary of Yum! Brands, Inc., meaning it provides franchise owners with industry-leading expertise and the proper resources to help them run great restaurants with the support of a renowned restaurant corporation.
Habit Burger benefits from a franchise team with deep experience running other successful franchises like Pizza Hut, KFC and Taco Bell. Its team guides every franchise owner throughout their journey to success, from site selection to inventory, training, marketing and IT systems. After a franchise owner signs the development agreement, The Habit provides them with suburban-centric market planning and site selection guidance, prototypical exterior and interior store design, best practices and support through the construction process and access to all its preferred vendors.
The franchise owners are fully immersed in the business with 500 hours of training — including back-of-house, front-of-house and the learning management system. During that time, they'll gain access to The Habit Burger Grill's tech-forward innovations, including: The Habit POS systems, delivery integration with the company's mobile and kiosk application, back-of-house system provisioning, connectivity provisioning, kiosk and mobile application development and the in-house restaurant service help desk.
When it comes time for Habit Burger locations to open doors and welcome guests, franchise owners are fully supported through comprehensive marketing resources, including: the new store opening planning materials, access to print and fulfillment partners, tools for local store marketing, email, social media and search engine marketing, pricing strategy guidance, quarterly marketing updates, public relations and multi-channel advertising campaigns.
The Habit Burger Grill earned a ranking in the 2022 Entrepreneur Franchise 500, coming in at No. 202 overall, and the past three years have seen a 24.3% increase in established units.
How much does a Habit Burger Grill franchise cost?
To open a Habit Burger Grill franchise of your own, here are the financial requirements, cash required and ongoing franchise fees associated with business ownership.
Initial franchise fee: $35,000.
Initial investment: $1,386,000 to $1,814,000.
Net worth requirement: $3,000,000.
Cash requirement: $1,400,000.
Royalty fee: 5.5%.
Ad royalty fee: 1%.
Term of agreement: 10 years.
The Habit Burger Grill does not offer financing. Qualified franchise candidates should have access to substantial liquid capital to meet the development obligations of multiple restaurants in the market you are requesting to develop, have the dedicated resources and infrastructure to operate the restaurants, have experience in construction oversight and developing real estate, and have a strong knowledge of financial and social market trends, product distribution, governmental laws and ordinances. Becoming a Habit Burger Grill franchisee is a multi-step process, and the candidate approval process can take three-to-six months.
As for revenue-generating potential, the FTC and various state franchise sales regulations do not allow the company to provide specific profit projections. The amount of money you earn will depend on many factors, including the location of your restaurant, traffic flow, local marketing and advertising, the cost of your investment and other important factors such as the ability to operate and manage your restaurants effectively.
Related: Considering franchise ownership? Get started now and take this quiz to find the personalized list of franchises that match your lifestyle, interests, and budget.
Is The Habit Burger Franchise right for you?
Prospective franchisees looking to be a part of growing The Habit Burger Grill franchise should possess an entrepreneurial spirit and enthusiasm for the brand, proven business experience with success in restaurant operations, have the dedicated resources and infrastructure to operate restaurants, as well as the ability to source real estate and construction. Candidates should also have access to enough liquid capital for the development of multiple restaurants in a large territory and ideally, live and work in the market they wish to develop.
The Habit Burger Grill is a chef-driven brand at the forefront of menu innovation. The company's corporate executive chef, Adam Baird, is the mastermind behind the brand's culinary flavors and draws up fresh and new seasonal creations using high-quality ingredients. Habit Burger's trend-forward LTOs and diversified entrée mix, all offered at a great everyday value, proves that it's mastered more than just amazing burgers.
Franchising with The Habit Burger Grill brings forth a wealth of potential through multiple revenue streams. In addition to in-store, takeout and drive-thru orders, franchisees can tap into The Habit Burger Grill mobile app, online website ordering, telephone ordering, curbside pickup, in-store kiosks and third-party delivery to drive sales, maintain convenience and promote an all-access guest experience.
Request more information about opening your own franchise location with The Habit Burger Grill by filling out this form to learn more and begin the discovery process for your very own franchise operation.
Related: 2022 Top Franchises for Less Than $100,000 Ranking
