How to Finance a Southern Steer Butcher Franchise: Meat Markets
By Marc Cornella
A Southern Steer Butcher franchise loan finances a neighborhood, full-service butcher shop that also sells prepared sides, gourmet groceries, craft beer and wine. That mix makes the business part specialty grocer and part food service, and lenders look closely at refrigeration, inventory and the skilled staff a meat counter needs.
This article explains what Southern Steer Butcher is, where to find its fees and investment in the Franchise Disclosure Document (FDD), how a butcher shop’s equipment and inventory affect financing, which loan programs fit, and what the brand’s SBA Franchise Directory listing and notes mean for your loan.
US Professional Funding is not affiliated with, sponsored by or endorsed by Southern Steer Butcher; the name is used only to describe the business. Figures in the franchisor’s disclosure document can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice, and buyers should review the current FDD and franchise agreement with a qualified franchise attorney and accountant.
Southern Steer Butcher Franchise Loan at a Glance
- Concept: a full-service neighborhood butcher shop with fresh meats, poultry and seafood, house-made sausages and marinated meats, sides, desserts, gourmet groceries, craft beer and wine.
- Origin: founded in Clearwater, Florida, by a former restaurant executive; the franchisor is Southern Steer Franchising International.
- Footprint: shops in Florida, with franchised expansion into markets such as the Austin area of Texas and Louisville, Kentucky.
- Extra revenue lines: weekly family meal packs, meal prep classes and community fundraising programs.
- Fees and investment: listed in the current FDD; we could not verify them from the franchisor’s own published materials.
- SBA Franchise Directory: listed under code S6341, with notes on lien position and the lease assignment explained below.
What Is Southern Steer Butcher?
Southern Steer Butcher started as a single shop in Clearwater, Florida. Its founder had spent years as a managing partner in a large restaurant chain and wanted to bring back the neighborhood butcher, a place where staff greet customers by name and help them plan a meal rather than just hand over a package.
The shops sell fresh beef, pork, poultry and seafood, including premium items such as Wagyu beef and bacon-wrapped scallops. A large share of the case is made in-house: sausages, marinated meats and weekly specials. Around the meat counter, the stores carry homemade sides, desserts, jams, dips and dressings, gourmet and local grocery items, charcoal, craft beer and wine.
The brand also sells convenience. Customers can preorder weekly family meal packs, and stores host prep classes where guests assemble and take home a batch of family-sized meals. Each shop is expected to give back to its community through a weekly charitable effort and fundraising partnerships with local groups.
How franchising began. When the founder opened a second shop, he sold it to a friend as the first franchise, then chose to franchise future locations. The brand has since expanded across Florida and into other states.
Why lenders view it the way they do. Specialty butcher shops have loyal customers and higher-margin prepared items, but they also carry perishable inventory, heavy refrigeration and labor that requires real skill. Southern Steer Butcher is a young, growing franchise system, so lenders weigh the borrower’s experience, the site and the equity in the deal heavily. Our article on financing an emerging franchise brand explains how lenders approach newer systems.
Southern Steer Butcher Franchise Costs
We could not verify the brand’s current franchise fee or investment range from the franchisor’s own materials, so build your Southern Steer Butcher franchise loan request from the current FDD and local quotes.
Initial franchise fee. Item 5 of the FDD lists the fee, when it is due and any reduced fee for additional shops.
Real estate and build-out. Most shops lease retail space in a busy shopping center. A butcher shop build-out is more involved than a typical retail store: floor drains, upgraded electrical service for refrigeration, washable wall and floor surfaces, a cutting room separated from the sales floor, handwashing and three-compartment sinks, and space for a walk-in cooler and freezer.
Equipment. Refrigerated display cases, walk-in coolers and freezers, band saws, grinders, slicers, sausage stuffers, a vacuum tumbler for marinating, vacuum packaging, scales and label printers, prep tables, a beer and wine cooler, and point-of-sale technology.
Opening inventory. Meat, seafood, sides ingredients, packaged groceries, beer and wine. Because meat is perishable and priced by the market, opening inventory needs careful ordering.
Licenses and working capital. Food retail permits, any alcohol licenses, insurance and deposits, plus additional funds to cover payroll and inventory until sales build.
Total investment. The Item 7 table in the FDD typically includes lines such as:
- Initial franchise fee
- Leasehold improvements
- Refrigeration and display cases
- Butchery and processing equipment
- Furniture, fixtures and signage
- POS and technology
- Opening inventory
- Training expenses
- Licenses, permits and insurance
- Grand opening marketing
- Additional funds for the initial period
Compare Item 7’s assumptions with the space you are actually considering, since the condition of a second-generation space can change build-out costs a great deal.
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists the royalty, any brand fund contribution, technology fees, and transfer and renewal fees. Most of these are tied to sales, so they come out before money is available for loan payments.
A butcher shop’s other big variables are meat costs and shrink. Wholesale beef and pork prices move, and product that is not sold in time must be discounted or used in prepared items. Lenders will want monthly projections that show cost of goods by category, labor, rent, royalties and debt service, with a cushion for a weak month.
Franchisor Requirements for New Owners
We could not verify published net worth, liquid capital or experience requirements for Southern Steer Butcher. Ask the franchisor for its criteria, its approval steps and the training it provides on cutting, merchandising and food safety.
Lenders set their own bar either way. Expect to document your equity, keep reserves after opening and explain who will run the meat counter. Butchery experience on the team, whether yours or a hired lead butcher’s, makes a request stronger. Our article on how lenders read a Franchise Disclosure Document explains which FDD items they review.
Ways to Own a Southern Steer Butcher
Open a new shop. A new location is financed on projections, your equity and your lease. See our overview of grocery store start-up financing.
Develop several shops. A development agreement commits you to opening more than one shop on a schedule, so plan financing for each.
Buy an existing shop. When a franchised shop comes up for sale, a lender can underwrite its actual sales and margins, subject to the franchisor approving the transfer. Our article on buying a franchise resale covers the process.
Financing Options for a Southern Steer Butcher Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan can combine the franchise fee, build-out, equipment, opening inventory and working capital in one loan.
SBA 504 loans. If you buy the building your shop occupies, an SBA 504 loan can finance owner-occupied real estate and long-lived equipment.
Conventional term loans. Owners with strong credit, collateral and experience may qualify for conventional business loans, especially after a first shop has a track record.
Equipment financing. Display cases, walk-ins, saws, grinders and packaging equipment can be financed or leased separately. Learn more about grocery store equipment financing.
Working capital and lines of credit. A line of credit can cover meat purchases ahead of the holidays and grilling season, payroll and repairs. See grocery store working capital options.
Seller financing on resales. On the purchase of an existing shop, the seller may carry part of the price. Seller notes are typically subordinate to the main loan, and SBA rules may limit them.
SBA Loans for Southern Steer Butcher Franchisees
The SBA Franchise Directory lists brands whose franchise documents have been reviewed so SBA lenders can lend to their franchisees without a separate review of the franchise relationship. A listing does not approve any borrower.
Southern Steer Butcher is listed under code S6341 with two notes:
- Lien position. The lender or Certified Development Company must secure the appropriate lien position on all collateral under the SBA’s standard operating procedures. In practice, the lender needs its required priority on equipment, inventory and any real estate, which affects how separate equipment leases or seller notes are arranged.
- Lease assignment and real estate. When the real estate where the franchise is located will secure the SBA loan, the Collateral Assignment of Lease, Landlord’s Consent to Assignment of Lease and Lease Addendum may not be executed. In plain English, if you own the property and pledge it as collateral, the franchisor’s lease takeover documents cannot be signed for that location, so nothing competes with the lender’s claim on the property. If you lease, this note generally does not change anything.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. Your lender will confirm the listing is current when you apply.
SBA application tips. Bring the FDD, franchise agreement, lease or letter of intent, contractor bids, equipment quotes, a personal financial statement, tax returns and monthly projections. Our SBA loan calculator provides planning estimates only.
How Lenders Evaluate a Southern Steer Butcher Deal
Personal credit and financial history. Lenders review credit, tax returns and existing debts and typically require a personal guarantee.
Net worth and liquidity. A documented equity injection and reserves after opening are essential.
Industry and management experience. Retail food, restaurant or butchery experience helps. Lenders want to know who will cut, merchandise and order meat each day.
Business plan and projections. Show sales by category, from fresh meat and prepared items to meal packs, classes, beer and wine. Include meat cost assumptions, shrink, labor and seasonality around holidays and grilling season.
The FDD and franchise agreement. Lenders review Item 17 for term, renewal and transfer rules, Item 10 for franchisor financing and Item 19 to see whether financial performance representations are included. Review Items 3 and 4 as well.
Site and lease. Lenders want a lease that generally runs at least as long as the loan and allows the build-out a butcher shop needs.
Historical financials on a resale. For an existing shop, expect to provide several years of profit and loss statements and sales reports.
Refrigeration, Equipment and Food Safety
Refrigeration is the backbone of a butcher shop. If a walk-in or display case fails, product can be lost in hours, so lenders and insurers pay attention to equipment quality, service contracts and backup plans. New equipment can serve as collateral, and financing it separately can preserve cash for inventory, as long as it fits the lien position the SBA note requires.
Food safety rules also shape the build-out and daily operations. Budget for inspections, temperature monitoring and staff training, and keep records that a lender or buyer can review later.
Multi-Unit Growth and Development Agreements
After a first shop shows steady results, lenders can count its cash flow when sizing a loan for the next. Spacing shops close enough to share a lead butcher or prepared-food production can help, if the franchise agreement allows it. Pace any development schedule to how quickly you can hire skilled staff.
Real-World Scenarios
A career changer with a culinary background. A former chef opens a shop in a suburban shopping center with an SBA 7(a) loan and hires an experienced butcher as store lead.
An owner buying the building. An investor buys a small retail building, opens a shop on the ground floor and uses an SBA 504 loan. Because the property secures the loan, the franchisor’s lease assignment documents are not signed.
A buyer purchasing a resale. A buyer acquires an established shop from a retiring franchisee, and the lender underwrites its sales history and margins.
Common Mistakes to Avoid
- Underestimating electrical, drainage and refrigeration build-out costs
- Ordering too much perishable opening inventory
- Leaving shrink and meat price swings out of projections
- Relying on one skilled butcher with no backup
- Adding equipment leases without checking the lender’s lien requirements
- Skipping Items 3, 4 and 17 of the FDD
Read more about grocery store loan mistakes before you apply.
Next Steps to Finance Your Southern Steer Butcher Franchise
Step 1: Get the current FDD. Review Items 5, 6, 7, 10, 17 and 19 with a franchise attorney.
Step 2: Organize your finances. Prepare a personal financial statement and document your equity.
Step 3: Choose a site. Work with the franchisor on a space that can handle refrigeration, drainage and electrical needs.
Step 4: Gather bids and quotes. Get build-out bids and equipment quotes, and prepare monthly projections.
Step 5: Talk with a financing specialist. Compare SBA 7(a), SBA 504 and conventional options.
Step 6: Apply and close. Submit your package and coordinate with the franchisor and landlord.
Southern Steer Butcher Franchise Loan FAQs
How much does a Southern Steer Butcher franchise cost?
Item 7 of the current FDD shows the estimated initial investment, which varies with the space and build-out.
What is the Southern Steer Butcher franchise fee?
Item 5 of the FDD lists the fee and any discounts for additional shops.
What royalty does Southern Steer Butcher charge?
Item 6 lists the royalty, brand fund and other recurring fees.
Can I get an SBA loan for a Southern Steer Butcher?
Yes. The brand is listed on the SBA Franchise Directory under code S6341, so eligible borrowers can apply, subject to approval.
Do I need to be a butcher?
Ask the franchisor about its training. Lenders will want to see that someone on your team has the skills to run the meat counter.
Can I finance refrigeration and cases separately?
Yes, equipment can often be financed or leased on its own, as long as it fits your main lender’s lien position.
Can a first-time owner get a Southern Steer Butcher franchise loan?
Yes, if approved. Relevant food experience, a solid plan and reserves make the request stronger.
Can I buy an existing shop?
Yes, if one is for sale and the franchisor approves the transfer. Lenders can then underwrite actual results.
Does Southern Steer Butcher offer financing?
Item 10 of the FDD discloses any franchisor financing.
How long is the franchise term?
Item 17 of the FDD lists the term, renewal and transfer conditions.
Final Thoughts
A Southern Steer Butcher franchise loan funds a specialty food business that depends on skilled people, reliable refrigeration and careful inventory control. Owners who confirm the FDD figures, budget realistically for the build-out and keep reserves for meat price swings put themselves in the best position.
US Professional Funding helps franchise owners finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and grocery store financing solutions.
