Franchise Deep Dive: Chiddy's CheeseSteaks’ Franchise Costs, Fees, Profit and Data

LAST UPDATED: October 2023

FRANCHISE WEBSITE: https://www.chiddyscheesesteaks.com/franchising/  

NUMBER OF LOCATIONS: 8 

REPORTED COST TO GET IN: $167,150 to $355,375 

REPORTED ROI (Item 19): N/A

Chiddy’s CheeseSteaks is a New York-based restaurant franchise that brings the authentic taste of Philadelphia's famed cheesesteaks anywhere it opens. It offers a menu of classic cheesesteaks, sandwiches and empanadas. 

How Many Chiddy's CheeseSteaks Locations Are There?

Chiddy’s CheeseSteaks began as a food truck in 2014. After growing to launch its second truck operation in 2017, and more in 2018, the brand grew into a storefront-based fast casual restaurant. Knowing that franchising was a part of the long-term plan for the brand, the Chiddy’s CheeseSteaks team began work in 2020 amid the COVID-19 pandemic. As they continued to grow and adapt as the market changing, the brand leaned into online ordering and grew despite the impact the pandemic was having on the restaurant industry 

As consumers continued to turn to their local favorites and Chiddy’s CheeseSteaks to feed their families, the brand started hearing more from aspiring entrepreneurs across the country who wanted to open their own restaurant.

Today, there are eight Chiddy’s CheeseSteaks locations in New York, with more on the way.  

What Is the Chiddy's CheeseSteaks Business Model?

Chiddy's CheeseSteaks restaurants typically fall within the 1,000 to 1,600 square feet range, requiring sufficient parking and exposure to drive-by traffic. The franchisor offers assistance in locating suitable real estate. The timeline for restaurant opening depends on factors like location acquisition speed and lease signing, with preexisting spaces converting in two to three months and new spaces typically opening in four to six months.

The franchise encourages owner-operator involvement in day-to-day operations, and staffing typically involves three to five employees per shift. While the initial concept originated from a food truck, this is not currently an option for franchise owners. 

The Chiddy's CheeseSteaks menu includes a variety of “comfort food” options, from cheesesteaks to mac and cheese and empanadas. The franchise has relationships with Philly-based suppliers for that “authentic Philly Cheesesteak” no matter where franchisees operate. 

How Much Can Chiddy's CheeseSteaks Franchise Owners Make?

Earnings for Chiddy’s CheeseSteaks franchise owners are not publicly available. 

How Much Does It Cost To Open a Chiddy's CheeseSteaks?

The startup investment to open a Chiddy’s Cheesesteaks ranges from $167,150 to $355,375 for a single unit/territory. Other financials to know include: 

• Ongoing Royalty: 6% of gross sales — paid weekly
• Brand Development Fund: 1% of gross sales plus $600 per month on local advertising and marketing
• Grand Opening: $2,500 (included in startup range)

What Is the Franchise Fee for Chiddy's CheeseSteaks?

The franchise fee is $30K. 

Who Is the Leadership of Chiddy's CheeseSteaks?

• Mike Chidester — President, CEO and Founder
• Evan Deitch — Chief Operating Officer and Founder
• Daron Benbenisti — Chief Sales and Marketing Officer and Founder

What Helpful Articles Can I Read to Learn More About Chiddy's CheeseSteaks?

• Chiddy’s CheeseSteaks Opens On Main Street
• Chiddy’s Cheesesteaks among the new offerings for Mets fans at Citi Field
• Exclusive: Mike Chidester is bringing 'good mood food' to Queens - New York Business Journal
• Chiddy's Cheesesteaks, With New Long Island Locale, Gets Praise For 'Perfect-Sized Sandwiches'
• Chiddy's Holds Grand Opening

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