Financing

Quaker Steak offers an LTO—for franchisees

Quaker Steak & Lube is offering prospective franchisees a 50% discount on upfront fees and a three-year break on royalties if they commit before April 30 to opening more than one unit of the casual-dining concept.

The different sort of LTO is intended to accelerate expansion of the brand, which was acquired in 2016 by Travel Centers of America, a truck stop operator whose sites host 880 limited- and full-service restaurants.  

"Throughout 2017, we focused our energy on revitalizing Quaker Steak & Lube as a whole and implemented various improvements,” Bruce Lane, VP of operations and franchise services, said in a statement.

Those changes included the development of a scaled-down grab-and-go version of the concept, called Quaker Steak & Lube Express. The chain also offers franchisees an endcap prototype and two freestanding-building designs.

The deal announced Jan. 29 entitles a new multiunit franchisee to a $20,000 cut in Quaker Steak’s upfront franchisee fee, and halves first-year royalties to 2.5% of sales. The payments rise to 3.5% and 4.5% in the second and third years, respectively.

Quaker, which is concentrated in Pennsylvania and the East, has cited the middle of the country as an area of expansion focus.

It currently extends to about 50 locations in 14 states. The chain is known for its wings and accommodations for motorcycle riders.

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