- 2024 Franchise 500 Rank
-
#117 Ranked #173 last year
- Initial investment
-
$1.7M - $2.8M
- Units as of 2024
-
382 28.2% over 3 years
The Habit Burger Grill Franchise
Is there anything better than smelling a delicious burger sizzling on the grill? Add the aroma of perfectly seasoned chicken, steak and tuna, and you have the unbeatable combination The Habit Burger Grill offers.
With a menu chock-full of delicious hamburgers, chicken and tuna sandwiches and numerous side dishes, it is no wonder you are considering opening a franchise with them.
Read on for everything you need to know about becoming an entrepreneur and opening your franchise with The Habit Burger Grill.
When did The Habit Burger Grill open?
Started in 1969 in Goleta, California and known for its fast casual dining experience, The Habit Burger Grill expanded in 1996 to include a second location in Santa Barbara, California.
Fast forward to 2020, when the company was purchased by its parent company Yum! Brands, who also own Taco Bell, Pizza Hut and KFC. By 2021 they opened their 300th location, including locations in Cambodia and China.
In 2022 The Habit Burger Grill won the prestigious Franchise Times Zor Award as “Top Franchise to Buy” for the quick-service burger category. They were named one of America’s favorite restaurant chains by Newsweek.
Related: 4 Keys to Opening a Successful Restaurant | Entrepreneur
What kind of food does The Habit Burger Grill serve?
Known for their high-quality ingredients, using the freshest produce available and providing a world-class customer experience, The Habit Burger Grill chargrills their entrees to perfection.
Their mouthwatering, award-winning Charburger is made with 100% ground beef and grilled over an open flame. Their line-caught sushi-grade ahi tuna, fresh chicken and marinated steak entrees only add to the mass appeal of this establishment, as there is something for even the most discerning connoisseur.
All the entrees are professionally chargrilled over an open flame, which seals in the flavor in a way you can only get from flame-grilling. But The Habit Burger Grill doesn’t just stop at entrees.
They have numerous delicious side options to choose from as well, including:
- Crispy chicken bites.
- French fries.
- Onion rings.
- Sweet potato fries.
- Tempura green beans.
- Caesar and side salads.
Related: Factors About Changing Trends in the Restaurant Market Especially the Menus | Entrepreneur
Who is the ideal franchise candidate for The Habit Burger Grill?
If you are interested in opening a franchise with The Habit Burger Grill, there are specific requirements franchise owners need to meet. Read on to see if you qualify for this exciting franchise opportunity.
Local
The ideal franchise owner should live and work in the market they want to develop.
Restaurant Experience
The Habit Burger Grill looks for franchisees with extensive casual restaurant operations experience. The ideal candidate will have experience owning and operating multiple restaurant locations in the fast-casual or full-service industry.
Financial Capabilities
The potential franchisee must meet the minimum initial investment requirements to open multiple restaurants in their desired territory. This requires a net worth of $3 million and a cash requirement of $1 million.
Resources
The candidate should have the necessary tools and funds to develop the restaurant from real estate purchase to building construction to operations. This includes a working knowledge of your territory's real estate and construction laws. The franchisee will have a prototype of the exterior and interior restaurant design, construction practices and recommended vendors.
Commitment
A successful franchise owner needs to be devoted to the business and involved in the operation of the franchise on a full-time basis.
Related: Am I a Good Franchise Candidate? | Entrepreneur
What are the steps to ownership for The Habit Burger Grill?
To take part in this franchise opportunity, there are specific steps you need to follow to be approved to open your own The Habit Burger Grill franchise. Typically, this approval process takes between three and six months to complete.
Inquiry
First, you must fill out the Franchise Inquiry Form to learn more about becoming a multi-unit franchisee of The Habit Burger Grill.
Initial discovery call
Once you have filled out the Inquiry Form and it has been received, you will be contacted by a franchise development team member to learn more about your restaurant and business experience. More information regarding The Habit Burger Grill will be provided, and the next steps will be explained.
Complete application
After the initial discovery call, if both parties are interested in proceeding, you will receive a franchise application to fill out and an FDD (Franchise Disclosure Document) for you to review. Once submitted, the process will continue to move ahead.
Application review meeting
The head of the franchise team will then make an appointment with you to review your application. Be prepared that a business plan, organizational chart and background check may be requested.
Conversation with the CEO and CFO
After you meet with the head of the franchise team, the next step is to ask the CEO and CFO any questions you might have about the company and moving forward.
Discovery day
Here you will go to The Habit Restaurant Support Center to meet with the executive team and learn about their roles with the company and how they will support you as a franchisee.
During the day, you will visit several restaurant locations and discuss ownership and the franchise's operation.
Finalize details
To finalize the partnership details, a discussion will occur to ensure both parties are on the same page regarding the partnership, the LOI (Letter of Intent) and the development agreement. Both parties will also go over the Franchise Disclosure Document.
Agreement finalized
At this stage, the agreement is executed, and you are officially a The Habit Burger Grill franchise owner.
Related: Follow These Essential Steps Before Purchasing a Franchise | Entrepreneur
What costs are involved in opening a franchise?
Opening your own The Habit Burger Grill franchise involves a few different costs. Read on to learn all the investment information you need to know about opening your franchise location.
- Initial Franchise Fee: $35,000.
- Royalty Fee: 5.5% of gross sales.
- Marketing Contribution Fee: up to 4.5% of gross sales.
- Development Fee Per Restaurant: $10,000.
- Total Investment (before TIA): $1.4 to 1.8 million.
Related: Startup Costs to Consider When Buying a Franchise | Entrepreneur
What building options are available?
Once everything has been approved and you are ready to break ground on your new business venture, you have to choose the location and type of building that best suits your needs.
Four options are available when you open a franchise with The Habit Burger Grill.
Freestanding with drive-thru
This option is a freestanding building consisting of approximately 2,500 to 3,000 square feet and equipped with a drive-thru.
Endcap
The Endcap option is typically at the end of a strip mall building, and the square footage is flexible.
Endcap with drive-thru
Similar to the standard Endcap building, this option comes with 2,400 to 2,800 square feet and added drive-thru option.
Non-traditional
This option is the smallest building plan offered and is 1,200 square feet or less.
Are there multiple revenue streams included?
With over 50 years of restaurant experience, The Habit Burger Grill has incorporated numerous revenue streams into its business plan to help franchise owners succeed.
To increase sales and provide the most convenient customer services experience possible, when you open a The Habit Burger Grill franchise, you will have the following revenue streams at your fingertips:
- In-store, take-out and drive-thru options.
- Online ordering through the mobile app.
- Online ordering through The Habit Burger Grill website.
- Ordering over the phone by calling the restaurant directly.
- Placing an order through a third-party delivery app.
- Utilizing one of the in-store kiosks.
- Placing an order and selecting the curbside pick-up option.
Related: How to Create Multiple Revenue Streams For Your Business | Entrepreneur
Does The Habit Burger Grill provide training?
When you open a franchise with The Habit Burger Grill, you will receive 500 hours of training, which includes everything you need to know regarding the back of the house, front of the house and the learning management system. You will also receive marketing support to help with the following:
- Ad templates.
- Social media.
- Website development.
- Loyalty program/app.
- Regional advertising.
- SEO (search engine optimization).
- Email marketing.
Related: Will My Franchise Provide Adequate Training?
Open a franchise with The Habitat Burger Grill today
If you are looking at branching out into the restaurant industry and are looking for a well-known, chef-driven brand with a creative and innovative menu, then opening a franchise with The Habit Burger Grill might just be for you.
With multiple revenue streams, an expansive menu, numerous building options and a well-known reputation for top-notch customer service, you could soon run a successful franchise with The Habit Burger Grill.
Check out Entrepreneur’s other articles for more information about The Habitat Burger Grill and other franchise opportunities.
Company Overview
About Habit Burger & Grill
Business Overview
Franchising Since | 2013 (11 years) |
---|---|
# of employees at HQ | 216 |
Where seeking |
This company is offering new franchises throughout the US. This company is offering new franchises worldwide. |
# of Units | 382 (as of 2024) |
|
Information for Franchisees
Here's what you need to know if you're interested in opening a Habit Burger & Grill franchise.
Financial Requirements & Ongoing Fees
Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
Initial Franchise Fee
|
$35,000 |
---|---|
Initial Investment
|
$1,658,000 - $2,849,000 |
Net Worth Requirement
|
$2,000,000 |
Cash Requirement
|
$750,000 |
Royalty Fee
|
5.5% |
Ad Royalty Fee
|
2% |
Term of Agreement
|
10 years |
Is franchise term renewable? | Yes |
Financing Options
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
Third Party Financing | Habit Burger & Grill has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory |
---|
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
On-The-Job Training | 300-500 hours |
---|---|
Ongoing Support |
Meetings & Conventions
Grand Opening
Online Support
Field Operations
Site Selection
Proprietary Software
Franchisee Intranet Platform
|
Marketing Support |
Ad Templates
Regional Advertising
Social Media
SEO
Website Development
Email Marketing
Loyalty Program/App
|
Operations
Additional details about running this franchise.
Is absentee ownership allowed? | No |
---|---|
Can this franchise be run from home/mobile unit?
|
No |
Can this franchise be run part time?
|
No |
Are exclusive territories available?
|
Yes |
Franchise 500 Ranking History
Compare where Habit Burger & Grill landed on this year's Franchise 500 Ranking versus previous years.
Additional Rankings
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