South Philly Steaks and Fries Franchise FDD, Profits & Costs (2025)
South Philly Steaks & Fries is a quick-service franchise specializing in the iconic Philadelphia cheesesteak and hand-cut fries. The brand traces its roots back to 1975 and entered the franchising market in 2003. It is part of Villa Restaurant Group, a family-founded company established in 1964 by Michele Scotto, which oversees a diverse portfolio of restaurant concepts.
The brand’s headquarters are in Morristown, New Jersey. Its menu showcases a variety of hearty options including traditional and chicken cheesesteaks, deli subs, loaded baked potatoes, and fresh salads. Every item is prepared with quality ingredients to capture the authentic flavors of South Philadelphia.
What makes South Philly Steaks & Fries stand out is its focus on genuine taste and a classic food experience presented in a modern fast-casual setting. The franchise combines the spirit of Philly street food with today’s dining expectations, attracting both loyal cheesesteak enthusiasts and newcomers in search of bold, satisfying meals.
Initial Investment
How much does it cost to start a South Philly Steaks and Fries franchise? It costs on average between $321,000 – $607,000 to start a South Philly Steaks and Fries franchised restaurant.
This investment covers expenses such as construction, kitchen equipment, initial food inventory, and early operating costs. The total required amount can vary based on several factors, including the restaurant format, the chosen location, and whether the franchisee decides to lease or buy the property.
| Type of Expenditure | Amount |
|---|---|
| Franchise Fee | $25,000 – $35,000 |
| Equipment and Furnishings | $100,000 – $130,000 |
| Signs | $9,000 – $15,000 |
| Real Estate | As required |
| Building Construction | $125,000 – $300,000 |
| Insurance | $3,000 – $6,000 |
| Opening Inventory | $5,000 – $10,000 |
| Utility Deposits | $2,000 |
| Business Licenses | $1,000 – $4,000 |
| Travel, Lodging and Meals | $3,000 – $5,000 |
| Grand Opening Advertising | As required |
| Professional Fees | $10,000 – $25,000 |
| Additional Funds (3 months) | $25,000 – $50,000 |
| Computer Equipment | $10,000 – $20,000 |
| Advertising and Marketing | $3,000 – $5,000 |
| TOTAL | $321,000 – $607,000 |
Average Revenue (AUV)
How much revenue can you make with a South Philly Steaks and Fries franchise? A South Philly Steaks and Fries franchised restaurant makes on average $1,183,000 in revenue (AUV) per year.
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Frequently Asked Questions
How many South Philly Steaks and Fries locations are there?
As of the most recent data, South Philly Steaks & Fries operates a total of 20 locations. Out of these, 15 are franchise-owned and 5 are company-owned.
What is the total investment required to open a South Philly Steaks and Fries franchise?
The total investment required to open a South Philly Steaks and Fries franchise ranges from $321,000 to $607,000.
What are the ongoing fees for a South Philly Steaks and Fries franchise?
A South Philly Steaks & Fries franchise has an ongoing royalty fee of 5% of gross sales and a marketing and advertising fee of 1% of gross sales.
What are the financial requirements to become a South Philly Steaks and Fries franchisee?
Prospective franchisees of South Philly Steaks & Fries must meet the following financial requirements: a minimum net worth of $300,000 and at least $75,000 in liquid assets.
How much can a South Philly Steaks and Fries franchise owner expect to earn?
The average gross sales for a South Philly Steaks and Fries franchise are approximately $1.18 million per location. Assuming a 15% operating profit margin, $1.18 million yearly revenue can result in $177,000 EBITDA annually.
Who owns South Philly Steaks and Fries?
South Philly Steaks & Fries” franchise is owned by Villa Restaurant Group, a multi-brand restaurant operator and franchisor founded in 1964 by Michele Scotto and headquartered in Morristown, New Jersey.
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