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Hog’s Breath Franchise Loan

Trying to start a business in the highly-competitive steakhouse space can be tough but a Hog’s Breath franchise loan can quickly get you up and running.

Hog’s Breath Cafes are an approved franchise with a couple of our lenders but the way they will assess your application will be very different.

With a specialist mortgage broker on your side, discover how you can build a solid application so you can get approved for a Hog’s Breath franchise loan the first time around.


Hog’s Breath franchise loan approval criteria

How much can I borrow?

  • New or existing store: Borrow up to 60% of the franchise costs including construction and fit out.
  • Borrow up to 100% with an existing residential property as security.
  • Loan term: Typically 5 years or as per the length of the lease term.
  • Loan term with property as security: 25 to 30 years (standard loan term).
  • Typically 3 years management experience in the hospitality industry is required.
  • You’ll be required to have an accountant approved business plan which shows revenue and cashflow forecasts.
  • Low doc options not available.
  • Reduced interest rates available depending on the strength of the application and your Loan to Value Ratio (LVR).

When buying an existing store, one of our lenders requires that the debt-to-EBITDA (earnings before interest, tax, depreciation and amortisation) be at least 1.75x based on past 3 years business financials of the current franchisees.

Our other lender doesn’t have this same requirement and will assess your application on a case by case basis.

Borrowing the amount you need comes to building a strong business case.

Please call us on 1300 889 743 or complete our free assessment form to speak with one of our franchise finance specialists today.

What will the bank assess?

Generally speaking, the bank will assess your Hog’s Breath franchise loan application on a case by case basis.

However, since it’s essentially a business loan, the best thing you can do is provide us with your most up-to-date financial statements including:

  • Working full-time: Your most recent group certificate and you last two payslips.
  • Business owner: Your last 2 years business activity statement (BAS).

Apart from the EBITDA requirement, business plan and evidence of your previous experience, the lender will generally want to see the last 3 years financials of the current franchisees if you’re buying an existing cafe.

They will be wary about lending for a struggling business unless you have considerable experience and a solid strategy in place to turn the restaurant around.

What if I have a bad credit history?

Unfortunately, you’ll need a clear credit file to get approved for a franchise loan.

How can we help?

A number of our senior mortgage brokers have many years of experience in commercial loans and know exactly what the decision makers in the commercial credit departments want to see in a Hog’s Breath franchise loan application.

The last thing you want to do is get declined for a loan!

This can affect your credit score and any ongoing finance requirements you need for your business going forward.

We can help you get approved for a franchise loan that’s set up in a way that supports your business needs, including the possibly of discounted interest rates.

Call us on 1300 889 743 or one of our Hog’s Breath franchise loan specialists will get in touch with you just by completing our free assessment form.


About Hog’s Breath Cafe franchises

With 80 stores across Australia and New Zealand, Hog’s Breath Cafe has been offering its casual dining experience since 1989, with its franchise model starting soon after.

The restaurant is known for its mix of family-orientated atmosphere mixed within a party atmosphere complete with strange memorabilia and merchandise.

It’s a key difference that separates it from the Quick Service Restaurant (QSR) model of companies like KFC and McDonald’s and gives new franchisees to put their customer service skills to the test and maximise their revenue.

How much does a Hog's Breath franchise cost?

The total investment for a franchise ranges from $800,000 – $1 million (excluding GST) depending on store location.

You can get a complete overview of the costs included in opening a restaurant by completing a Hog’s Breath Cafe enquiry form and requesting a franchise kit.

As a general rule though:

  • Franchise fee (new store): $50,000 (excluding GST). This includes training costs.
  • Franchise fee (existing store): $6,000 (excluding GST).
  • Monthly royalty: 5% as per gross food and beverage sales only (excluding promotions, merchandise and discounts).
  • Advertising and marketing: 2% of gross food and beverage sales only.

The fact that Hog’s Breath excludes merchandise from royalties and advertising fees should factor into your business plan.

What does an ideal restaurant look like?

Ideally, the Hog’s Breath Cafe should be about 350-400 square metres complete with:

  • 150-capacity floor space for clients.
  • 30 square metres for kitchen space.
  • 30 square metres for office space, dry stores and cool rooms.

What's the application process?

  • Contact the franchise development manager: they’ll be able to provide a list of stores that are currently for sale.
  • Have a conversation with the development manager regarding your application form as well as potential sites to for you to come on as the new owner or to establish a new store.
  • You’ll travel to Hog’s Breath Cafe’s support office in Cleveland, Brisbane to meet the support office team.
  • Site selection is completed and dates scheduled for lease and fit-out.
  • Council and liquor licence approvals are submitted and construction begins (if you’re buying a new store).

What about training and support?

During the construction process, or after your franchise application has been approved, you’ll be put through an 8-week training program at “Hog University”, which is the support office in Brisbane.

Once construction is completed, your staff will be provided with training from Hog’s Breath’s in-store training team 10 days before you open for business.

The training team will stay on for another 10 days after you open to provide ongoing support.

Revenue estimates

Success in running the franchise and generating strong revenue will depend on the location of the cafe and your business acumen.

As a minimum, it’s important that as part of your business plan you complete a thorough market analysis of the location including the demographics of the area.

As a family restaurant, you’ll want to make sure you’re not being placed in a location with a young and single demographic, for example.

Hog’s Breath is considered to be part of the middle-range dining segment which puts it a cut above take-away restaurants but just below fine-dining.

It’s for this reason that your success will come down to providing a fun dining experience coupled with excellent customer service.

Busier lifestyles are drawing more people to family restaurants like Hog’s Breath, with the restaurant industry as a whole expected to post annualised growth of 4.3% over the five years to 2016 (IBISWorld).

Anymore tips?

Visit your local Hog’s Breath Cafe and get to know the owner.

No matter what type of business you want to buy, diving in head-first into running a restaurant without a business mentor can see you make very common mistakes that could easily be avoided.

It’s not a passive investment.

If you want that, you may want to consider buying a freehold property,which we can help you get a commercial loan for!

The other important tip is to get independent legal and financial advice before signing any agreement with Hog’s Breath.


Need a Hog’s Breath franchise loan?

Speak to a mortgage broker today

Call 1300 889 743 or complete our free assessment form today to speak with one of our specialist mortgage brokers and discover if you qualify for a Hog’s Breath franchise loan.