Your initial investment to acquire a license to operate a Keg franchise is $75,000. For this initial investment, you will receive your initial training, support, development assistance and operating manuals necessary to start up the restaurant. Your total investment will vary from project to project, but an estimated range is from $3,500,000 to $4,400,000. The following are key factors that will determine the amount:
The royalty fee is 6% of gross sales. This fee provides you with the use of The Keg Steakhouse & Bar brand name and operating system as well as ongoing support, training, research and development.
The marketing assessment is 2% of gross sales. This is used to promote and build brand recognition of The Keg Steakhouse & Bar name.
Your return will be dependent on a number of factors: your skill and abilities, your competition, interest rates, the economy, inflation, labor and supply costs, lease terms and the marketplace in general. As you proceed, we can show you average figures based on the performance of our corporate restaurants.
Our franchise organization is designed to provide you with the tools and support you need to make your restaurant the first choice for people who love steak. The support begins before you open your restaurant with a development team who will assist in creating The Keg environment, followed by a training team to train your management and staff on how to provide your guests with The Keg experience. Once your restaurant is open, follow up support will be provided to insure that The Keg systems and specifications are in place. Ongoing support will be provided with respect to accounting, marketing, menu development, and human resources.
No. However, any experience you have gained in any area of food service always helps. More than anything else, your sound business sense and your compatibility with The Keg's high standards are what will make you an ideal candidate. If you don't have full service restaurant experience, we insist that you have a day-to-day operator with experience; ideally Keg experience.
Training for you and your staff is thorough. We will train your management team and key staff at one of the corporate locations. We will send a hands-on support opening team to assist in training your staff. Besides travel, accommodation and meals, additional costs for the opening team are minimal. You can open your restaurant with the confidence and knowledge that you have received adequate training to do things The Keg way, with a support system and people to help you.
You will find that The Keg has taken care of every aspect of The Keg experience for you, including: interior design, layout, menu, recipes, health and safety standards, food suppliers, product specifications and advertising. Your adherence to these standards is what will make your Keg franchise a success. The consistency and quality of these standards not only creates and reinforces the brand, but also insures that Keg guests have The Keg experience, at any Keg location, each and every time.
The Keg will provide you with assistance in finding the best site possible. The detailed site criteria that we have compiled will help contribute to the success of your Keg restaurant. Although, The Keg must give final approval, you will be involved in the site selection process.
In Canada, the metropolitan areas of Toronto, Vancouver, Montreal, Calgary and Edmonton are designated as corporately owned and operated. All other Canadian markets are current or potential franchise markets. In the Pacific Northwest, Greater Seattle is corporately owned and operated with the remainder of Washington designated as a potential franchise market. Following this same philosophy, we have opened corporate locations in the metropolitan areas of Dallas/Fort Worth, Denver, and Phoenix, and will evaluate outlying areas and other parts of these states as potential franchise markets. We are continuing to evaluate other U.S. markets for both corporate and franchise opportunities.
The application process from the date of your initial inquiry to the executive approval is from two to six weeks. Once your application has received executive approval, the time frame to opening day will depend on whether it is a conversion of an existing restaurant or a new construction. This can take from three to twelve months, and will depend largely on the time required for building and liquor permit applications in your jurisdiction.
If you wish to investigate The Keg opportunity further, please complete the Confidential Qualification Report and forward it to The Keg's Vice President of Business Development. Once your qualification is determined, the franchise application process starts. You will be contacted for an interview and the exchange of information will begin so that you can make a fully informed business decision.
You have successfully run a business the size and scope of The Keg. Although restaurant experience is preferred, your excellent management skills can be adapted through The Keg's training programs. You have a thorough knowledge of the market in which you wish to open your franchise. It is preferable that you have lived in the city, as well as know the business and cultural climate. Please note that a population base of approximately 100,000 people in Canada or 225,000 in the United States is required for us to consider a new location. You need to have sufficient unencumbered capital. Although the amount will vary from location to location depending on the specific business, your combined net worth should be a minimum of $2 million. You have a desire to be a part of a successful franchise group. If you are interested in a territory or multiple restaurants, the following additional criteria must be in place: a. A development agreement which will specify the number of sites and the time period in which they must be built. b. The financial ability to operate more than one restaurant. c. The management capability and personnel to operate the desired number of restaurants in the territory or multiple restaurants. You will be required to submit a proposal detailing all aspects of your business plan and management, shareholder and operating structures.
Your plan must include: