Welcome to Business Bites, the blog where food meets business strategy, and where every bite tells a story about what makes the biggest restaurant chains tick. If you’ve ever wondered why some restaurants become household names while others remain local favorites, you’re in the right place.
This series explores the decisions that transformed small restaurants into billion-dollar businesses. Every company has a unique story, and each one offers lessons in leadership, marketing, operations, and growth. Along the way, I’ll also share some of my favorite menu items because understanding the product is just as important as understanding the business behind it.
Today’s spotlight is on the company that took one regional sandwich and introduced it to millions of people around the world:
Charleys Philly Steaks
Part 46 – Charleys Philly Steaks
Some restaurant chains invent entirely new foods. Others take an existing favorite and make it accessible to people who otherwise might never experience it. That’s exactly what Charleys Philly Steaks accomplished.
For decades, authentic Philly cheesesteaks were closely associated with Philadelphia. Unless you traveled there, finding a quality cheesesteak wasn’t easy. Charleys recognized an opportunity to bring the iconic sandwich to shopping malls, airports, military bases, and communities across the globe while maintaining the made-to-order experience that customers expected.
Today, Charleys has grown into the world’s largest cheesesteak franchise, proving that expanding a beloved regional specialty can become the foundation of an international restaurant brand.
From an Ohio State Student to the World’s Largest Cheesesteak Franchise
Charleys’ story began in 1986 when founder Charley Shin tasted his first authentic Philly cheesesteak while visiting Philadelphia. Inspired by the sandwich, he returned to Columbus, Ohio, determined to recreate the experience for students at The Ohio State University.
With support from his mother, Shin opened a small 450-square-foot restaurant called Charley’s Steakery just off campus. The restaurant immediately attracted students with freshly grilled cheesesteaks, hand-cut fries, and real-fruit lemonades prepared right in front of customers.
As demand grew, Charleys began franchising in 1991. Rather than limiting expansion to traditional restaurants, the company strategically entered shopping malls, airports, military bases, convenience stores, and other high-traffic locations where customers wanted quick, freshly prepared meals. Over time, the menu expanded to include chicken cheesesteaks, wings, gourmet fries, and shakes while keeping cheesesteaks at the center of the brand.
Today, Charleys operates more than 850 restaurants across the United States and internationally, making it the largest cheesesteak franchise in the world.
My Go-To Order
When diving into a business, you’ve got to taste the product, right? Here are the items I usually order from Charleys and why they’ve remained customer favorites.
Old School Philly Cheesesteak: This is almost always my order because it highlights the grilled steak, melted cheese, and toasted bread that made the company famous.
Loaded Gourmet Fries: The fries have become nearly as recognizable as the cheesesteaks themselves and help increase the average order value while complementing the sandwiches.
Strawberry Lemonade: Charleys’ real-fruit lemonades provide another signature product that differentiates the restaurant from traditional sandwich chains.
Classic Boneless Wings: Expanding into wings allows Charleys to serve larger groups and encourage combination purchases without moving too far from its core business.
Overall, my order reflects Charleys’ strategy of pairing one iconic sandwich with complementary products that encourage customers to purchase complete meals.
The Business Behind the Billions
Expanding a Regional Favorite
Rather than creating a completely new sandwich, Charleys introduced the Philadelphia cheesesteak to markets where customers had limited access to one. By maintaining fresh preparation while making the product widely available, the company expanded the customer base for an already beloved food.
Sometimes innovation comes from expanding access rather than inventing something entirely new.
Making Fresh Preparation Part of the Experience
One of Charleys’ defining characteristics is that cheesesteaks are grilled directly in front of customers. Watching steak, onions, and cheese cook on the flat-top grill creates confidence in freshness while turning meal preparation into part of the dining experience.
Transparency builds trust, especially when customers can see exactly how their food is being prepared.
Choosing High-Traffic Locations
Instead of relying primarily on standalone restaurants, Charleys aggressively expanded into shopping malls, airports, military bases, and other busy locations. These venues expose the brand to thousands of potential customers every day while generating impulse purchases from people already on the move.
Location strategy can be just as important as menu strategy when building a restaurant brand.
Growing Through Franchising
After proving the concept near Ohio State, Charleys expanded through franchising, allowing local entrepreneurs to operate restaurants using standardized recipes, training, and operating procedures.
Franchising accelerated growth while enabling the company to maintain consistency across hundreds of locations around the world.
Keeping the Core Product Front and Center
Although Charleys has added wings, fries, shakes, and lemonades over the years, cheesesteaks remain the centerpiece of the menu. Every expansion reinforces rather than replaces the company’s identity.
Strong brands know what customers expect and continue building around those expectations instead of constantly changing direction.
Lessons From Charleys Philly Steaks for Aspiring Entrepreneurs
Strategy | What It Teaches |
|---|---|
| Regional Expansion | Bringing local favorites to new markets can create enormous opportunities |
| Fresh Preparation | Visible food preparation strengthens customer trust |
| Location Strategy | High-traffic locations naturally generate more customer exposure |
| Franchising | Proven systems allow businesses to scale efficiently |
Final Thoughts
Charleys demonstrates that successful businesses don’t always need groundbreaking products. Sometimes success comes from recognizing an exceptional regional favorite and finding a way to introduce it to a much larger audience.
What stands out most is the company’s commitment to freshness. From the sizzling grill to the toasted bread and freshly prepared ingredients, the cooking process has always been part of the experience rather than something hidden behind the kitchen.
For entrepreneurs, the lesson is straightforward. You don’t have to reinvent an industry to build a successful business. Identifying a product people already love—and delivering it consistently, conveniently, and at scale—can be just as powerful as creating something entirely new.
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Sources:
- Charleys Philly Steaks – Our Story
- Charleys Philly Steaks – Menu
- Charleys Philly Steaks – Franchising
- Charleys Philly Steaks – Franchise FAQs
- Restaurant Business – Charleys Philly Steaks News & Analysis
- QSR Magazine – Charleys Philly Steaks Coverage
- Nation’s Restaurant News – Charleys Philly Steaks Coverage
- Entrepreneur – Charleys Philly Steaks Franchise Profile
- Technomic – Restaurant Industry Insights
- Statista – U.S. Quick-Service Restaurant Industry Statistics
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