Franchise Deep Dive: Charleys Philly Steaks Franchise Costs, Fees, Profit and Data

This franchise offers a simple and appealing menu, provides extensive support to franchisees, and is pursuing strategic global expansion.

By Victoria CampisiStaff Writer

12:12PM • 01/10/24

LAST UPDATED: December 2023

FRANCHISE WEBSITE: https://charleysfranchise.com/

NUMBER OF LOCATIONS: 700+

REPORTED COST TO GET IN: $216,507 - $907,012

REPORTED ROI (Item 19): N/A

Charleys Philly Steaks is an American restaurant franchise known for its Philadelphia-style cheesesteaks. It was formerly known as Charley's Steakery and Charley's Grilled Subs. The franchise is a subsidiary of the multi-restaurant company GOSH Enterprises.

How Many Charleys Philly Steaks Locations Are There?

Charleys was founded by Charley Shin in 1986. The first store was opened in the food court of the Ohio State University in Columbus, Ohio. The concept started as a single cheesesteak shop, and its popularity grew, leading to the expansion of the brand. In 1991, the brand started franchising, which contributed significantly to the brand's growth and its ability to establish a presence in various locations, including malls, airports and other high-traffic areas.

Today, there are over 700 locations in 46 U.S. states and in 17 countries. In 2021, the brand made strategic investments for growth to put the brand on a path toward a goal of 1,000 locations by the end of 2023. Innovations included new menu items, digital initiatives, and updates to the experience of its guests and employees. In 2022, it opened its 700th location.

What Is the Charleys Philly Steaks Business Model?

Key elements of Charleys’ quick service restaurant (QSR) business model include:

Menu offering: The core of their menu is centered around Philadelphia-style cheesesteak sandwiches. They emphasize providing a distinct experience in the QSR and fast casual industries by offering made-to-order food that is affordable without compromising quality.
Adaptation to market trends: Charleys has adapted to market trends, such as the increasing popularity of third-party food delivery services. They recognize the importance of offering delivery options to meet customer preferences, especially considering the impact of the COVID-19 pandemic on consumer behavior.
Simplicity: Charleys keeps its menu relatively simple, focusing on a few core items, including cheesesteaks, wings and fries. This simplicity is intended to make the business model easy to operate, and it aligns with consumer preferences for a straightforward and appealing menu.
Diverse location options: The brand offers flexibility in terms of restaurant locations. This includes freestanding units with drive-thrus, end caps, in-line locations in strip malls, food courts in malls and airports, and non-traditional locations like travel plazas, office complexes, and co-branding opportunities in convenience and gas station locations.
Franchisee support: Charleys emphasizes providing comprehensive support to franchisees. This support includes assistance with real estate and site selection, initial training, ongoing operational and marketing support, securing low food costs, and continuous business development.
Training and support platform: The franchise offers a comprehensive training and support platform designed to help franchisees, even those without prior experience in the restaurant industry, master the business model.
Global expansion: As of 2022, Charleys Philly Steaks has expanded its footprint to more than 700 locations in over 17 countries, indicating a successful global expansion strategy.

How Much Can Charleys Philly Steaks Franchise Owners Make?

Earnings for Charleys owners are not publicly available.

How Much Does It Cost To Open a Charleys Philly Steaks?

The initial investment to open a Charleys franchise ranges from $216,507 to $907,012. This may include:

Initial Franchise Fee: $24,500
Leasehold Improvements: $50,000-$455,000
Equipment/Furniture/Fixtures: $60,000-$195,000
In-Restaurant Music/Media System: $375-$1,200
POS System: $15,383-$30,312
Signage: $9,249-$65,000
Architect: $10,500-$30,000
Travel and Living Expenses Associated With Initial Training: $4,000-$6,000
Insurance: $3,500-$10,000
Deposits and Professional Fees: $1,000-$8,000
Real Estate Lease: $10,000-$30,000
Grand Opening Marketing Package: $7,000-$10,000
Social Media Marketing: $1,000-$2,000
Additional Funds (Three-Month Period): $20,000-$40,000

What Is the Franchise Fee for Charleys Philly Steaks?

The franchise fee is $24,500.

Who Is the Leadership of Charleys Philly Steaks?

Charley Shin — Founder and CEO
Candra Alisiswanto — Chief Development Officer, Chief Operating Officer, Chief Financial Officer and President
Brian Hipsher — Chief Marketing Officer

What Helpful Articles Can I Read to Learn More About Charleys Philly Steaks?

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