Steak N Shake vs Penn Station, Inc.
Franchise Comparison 2026
Both Steak N Shake and Penn Station, Inc. are full-service restaurants franchises. Steak N Shake requires an investment of $259K – $998K while Penn Station, Inc. requires $441K – $820K. In terms of revenue, Penn Station, Inc. reports higher average unit revenue at $820K. On SBA loan performance, Penn Station, Inc. has a lower charge-off rate (2.0%) compared to Steak N Shake (15.2%). FranchiseVerdict rates Steak N Shake B (Above average) and Penn Station, Inc. A (Strongest tier).
| Metric | Steak N Shake | Penn Station, Inc. |
|---|---|---|
| Verdict Grade | BAbove averageAbove average | AStrongest tierStrongest tier |
| Investment Range | $259K – $998K | $441K – $820K |
| Franchise Fee | $10K | $13K |
| Royalty Rate | Not a simple percentage royalty. Franchise Partner pays a "System Fee" equal to the Established Percentage (up to 15%) of monthly Gross Receipts minus equipment rental and Admin Services Fee, plus an "Additional System Fee" equal to 50% of the Restaurant's monthly Net Profit; franchisee retains a contractual Minimum Profit ($1,000/month) plus 50% of Net Profit as "Additional Profit." | Tiered monthly royalty on net sales: 0-2% on net sales <$30,000 (0% during 5-yr abatement window, else 2%); 3% on $30,000-$35,000; 4% on $35,000-$40,000; 5% on $40,000-$45,000; 6% on $45,000-$50,000; 7% on $50,000-$55,000; 8% on net sales >$55,000 (monthly tiers, "Current Royalty Rates") |
| Average Revenue (Item 19) | $130K | $820K |
| SBA Charge-Off Rate | 15.2% (38 loans) | 2.0% (50 loans) |
| Total Units | 387 | 322 |
| Unit Growth (YoY) | N/A | N/A |
| Year Began Franchising | 1939 | 1987 |
| FDD Year | 2026 | N/A |
Investment Range
$259K – $998K
$441K – $820K
Franchise Fee
$10K
$13K
Royalty Rate
Not a simple percentage royalty. Franchise Partner pays a "System Fee" equal to the Established Percentage (up to 15%) of monthly Gross Receipts minus equipment rental and Admin Services Fee, plus an "Additional System Fee" equal to 50% of the Restaurant's monthly Net Profit; franchisee retains a contractual Minimum Profit ($1,000/month) plus 50% of Net Profit as "Additional Profit."
Tiered monthly royalty on net sales: 0-2% on net sales <$30,000 (0% during 5-yr abatement window, else 2%); 3% on $30,000-$35,000; 4% on $35,000-$40,000; 5% on $40,000-$45,000; 6% on $45,000-$50,000; 7% on $50,000-$55,000; 8% on net sales >$55,000 (monthly tiers, "Current Royalty Rates")
Average Revenue (Item 19)
$130K
$820K
SBA Charge-Off Rate
15.2% (38 loans)
2.0% (50 loans)
Total Units
387
322
Unit Growth (YoY)
N/A
N/A
Year Began Franchising
1939
1987
FDD Year
2026
N/A