1979
185
$1,600,000
$50,000
$2,700,000
No
Cheddar's Scratch Kitchen is a renowned American casual dining restaurant chain that has redefined the dining experience by offering freshly prepared, made-from-scratch meals at affordable prices. With a commitment to quality and a welcoming atmosphere, Cheddar's has become a favorite destination for families and food enthusiasts alike. As part of Darden Restaurants, Inc., Cheddar's benefits from the strength and support of one of the largest and most respected restaurant companies in the world.
Proven Business Model: Cheddar's operates over 180 locations across 29 states, demonstrating a successful and scalable business model.
Strong Brand Recognition: As part of Darden's portfolio, Cheddar's benefits from national marketing campaigns and brand strength.
Comprehensive Support: Franchisees receive extensive training and ongoing support in operations, marketing, and management.
Attractive Financials: With an average unit volume of $4.25 million and profit margins between 14-18%, Cheddar's offers a compelling investment opportunity.
1. Established Year & Founders
Founded: 1979
Original Name: Cheddar’s Casual Café
Founders: Aubrey Good and Doug Rogers
Founding Location: Arlington, Texas
Cheddar’s was created with a focus on fresh, made-from-scratch meals at affordable prices, catering to families and casual diners seeking quality comfort food in a welcoming environment.
2. Company History & Brand Journey
1979-1990s: Cheddar’s began as a single casual dining restaurant in Texas and gradually expanded across the state. Its emphasis on scratch-made recipes helped build a loyal customer base.
2000s: Cheddar’s entered new states, growing steadily through company-owned locations and franchise partnerships. The brand became known for signature dishes like Chicken Tenders, Baby Back Ribs, and scratch-made desserts.
2017 Acquisition: Darden Restaurants, the parent company of Olive Garden and LongHorn Steakhouse, acquired Cheddar’s Scratch Kitchen for $780 million. This acquisition strengthened Cheddar’s corporate support, marketing reach, and operational infrastructure.
3. Franchise Units
Number of Locations (as of 2024): 185 across 29 U.S. states
Franchise Model: Cheddar’s operates a mix of company-owned and franchised locations, allowing entrepreneurs to invest in an established brand with proven systems.
4. Ownership & Corporate Structure
Parent Company: Darden Restaurants, Inc.
Headquarters: Orlando, Florida
Industry Category: Casual Dining / Family Dining
Key Advantage: Being part of Darden allows Cheddar’s franchisees access to corporate resources, bulk purchasing power, marketing programs, and operational expertise.
5. Market Presence
Cheddar’s has strong regional presence in states like Texas, Florida, Tennessee, and North Carolina.
The brand targets suburban and urban locations with high family and community traffic.
Cheddar’s continues to expand in underserved markets, offering franchise opportunities to qualified investors.
6. Industry Position
Category: Casual Dining
USP: Made-from-scratch meals at affordable prices, friendly service, and a welcoming family-friendly atmosphere.
Competitive Advantage: Unlike many chain restaurants, Cheddar’s maintains a scratch-cooking philosophy, which sets it apart in taste and quality.
Cheddar’s Scratch Kitchen emphasizes hands-on, continuous support to ensure every franchisee operates efficiently, maintains high standards, and grows profitably. Their support structure can be categorized into several phases:
Before the restaurant opens, Cheddar’s provides guidance on:
Site Selection & Lease Negotiation: Assistance in finding the ideal location based on market analysis, foot traffic, and demographics.
Restaurant Design & Construction: Support with architectural layouts, interior design, and ensuring compliance with brand standards.
Permits & Licenses: Guidance through the regulatory process, including health codes, fire safety, and local business permits.
Project Management: Cheddar’s specialists coordinate timelines for construction, kitchen setup, and staff onboarding to ensure smooth launch.
Franchisees and their management teams receive comprehensive training covering:
Operations & Kitchen Procedures: Detailed instruction on cooking from scratch, inventory management, portion control, and food safety.
Customer Service Excellence: Techniques to ensure exceptional guest experiences, from seating to check-out.
Business Management: Training in budgeting, financial reporting, scheduling, labor management, and operational efficiency.
Point-of-Sale & Technology Systems: Hands-on training on Cheddar’s proprietary systems for orders, payments, and loyalty programs.
Cheddar’s supports franchisees in promoting their location effectively:
National Marketing Campaigns: Advertising through TV, digital platforms, and print media, managed by the corporate team.
Local Marketing Assistance: Guidance and tools for localized promotions, grand openings, community events, and PR campaigns.
Social Media & Digital Tools: Strategies and content templates to engage audiences online and increase visibility.
Franchisees benefit from continuous corporate support:
Field Consultants: Regular visits from operations experts who provide guidance, evaluate performance, and suggest improvements.
Annual Franchise Meetings: Conferences and workshops for networking, skill-building, and learning best practices.
Performance Analytics: Access to reporting tools to monitor sales trends, labor efficiency, and inventory levels.
Problem Resolution: Dedicated support teams available to assist with challenges in operations, HR, or marketing.
Cheddar’s emphasizes growth and adaptability:
New Menu & Product Training: Training whenever new menu items or promotions are introduced.
Industry & Regulatory Updates: Guidance on food safety, labor laws, and market trends.
Leadership Development: Programs for management teams to develop skills for multi-unit growth.
Cheddar’s Scratch Kitchen seeks franchise partners who align with the brand’s values, operational standards, and growth goals. The ideal franchisee combines financial capability, operational experience, passion for hospitality, and strategic business sense
Restaurant or Hospitality Experience: Franchisees with prior experience in multi-unit restaurants, casual dining, or foodservice operations are preferred.
Business Management Skills: Experience managing budgets, teams, and daily operations is highly valuable.
Entrepreneurial Mindset: Ability to make strategic decisions, adapt to market trends, and grow the business over time.
Net Worth Requirement: Minimum of $2,000,000.
Liquid Capital: Minimum of $750,000 available to invest in franchise setup and working capital.
Investment Readiness: Ability to invest $1.6M – $2.7M in total, covering infrastructure, pre-opening costs, and marketing.
Franchisees must be financially stable to sustain the business through launch and initial growth phases.
Customer Experience: Strong desire to create exceptional dining experiences for guests, including food quality, service, and hospitality.
Brand Dedication: Commitment to maintaining Cheddar’s scratch-made food standards and corporate operational procedures.
Community Engagement: Willingness to build relationships within the local community, participate in local marketing, and foster a loyal customer base.
Hands-On Leadership: Active involvement in restaurant operations, particularly in the first year of launch.
Multi-Unit Growth Potential: Investors who are interested in owning multiple locations or expanding within a market are ideal.
Strategic Location Selection: Willingness to follow corporate guidance on location selection, targeting high-traffic, family-friendly areas.
Resilient & Adaptable: Ability to navigate challenges, labor fluctuations, and market changes.
Team-Oriented: Strong leadership skills to recruit, train, and motivate staff.
Detail-Oriented: Commitment to operational excellence, food safety, and brand standards.
Growth-Focused: Interest in long-term growth, maximizing ROI, and contributing to the overall success of the Cheddar’s brand.
| Financial Component | Details |
|---|---|
| Initial Franchise Fee | $50,000 |
| Total Estimated Investment | $1,600,000 – $2,700,000 |
| Royalty Fee | 4% of gross sales |
| Marketing Fee | 0.75% of gross sales |
| Contract Term | 20 years, renewable |
| Net Worth Requirement | $2,000,000 minimum |
| Liquid Capital Requirement | $750,000 minimum |
| Average Unit Volume | $4,250,000 |
| Profit Margin | 14% – 18% |
| Break-Even Time | 2 – 3 years |
| Revenue Streams | Dine-in, Carryout, Catering |
| Infrastructure / Build-Out Cost | Included in total investment ($1.6M–$2.7M) |
| Working Capital | Included in total investment |
| Franchise Units (U.S.) | 185 locations across 29 states |
