Yard House is one of America's most recognizable upscale casual dining concepts - known for its massive beer selection, open kitchen design, and energetic atmosphere. With over 80 locations across the United States, Yard House has built a loyal following of diners who appreciate craft beer, elevated bar food, and a lively environment. If you are exploring a Yard House franchise cost or looking to understand the investment required to enter this segment of the restaurant industry, you are not alone.
Here is what many prospective investors discover: Yard House is owned by Darden Restaurants, the same parent company behind Olive Garden and LongHorn Steakhouse. As a corporate-owned brand, Yard House does not currently offer traditional franchise opportunities to independent investors. However, understanding the investment landscape of large-format casual dining concepts - and how to finance similar restaurant ventures - remains valuable for entrepreneurs serious about this space.
In this guide, we break down the Yard House business model, typical costs for comparable restaurant concepts, and how Crestmont Capital can help you secure the financing you need to open a high-volume casual dining or sports bar concept in your market.
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Apply NowFounded in 1996 in Long Beach, California, Yard House quickly became a destination for craft beer enthusiasts and food lovers alike. The concept centers on a massive draft beer program - locations typically serve over 100 beers on tap - paired with an extensive American menu featuring shareable appetizers, burgers, flatbreads, and globally inspired entrees.
Darden Restaurants acquired Yard House in 2012 for approximately $585 million, recognizing the brand's strong unit economics and growth potential. Today, Yard House operates over 80 restaurants in major markets including California, Texas, Florida, New York, and beyond. Locations are strategically placed in high-traffic retail centers, entertainment districts, and airports.
The Yard House business model relies on several key revenue drivers:
According to Forbes, large-format casual dining concepts continue to attract investor interest despite headwinds in the broader restaurant industry, particularly those with strong beverage programs that command premium margins.
This is the most important question for prospective investors: Yard House does not currently franchise. As a wholly owned subsidiary of Darden Restaurants, Inc. (NYSE: DRI), all Yard House locations are corporate-owned and operated. Darden has historically maintained a corporate ownership model for its full-service brands, preferring consistent brand standards and operational control over franchise expansion.
This means that if you are searching for a Yard House franchise cost because you want to open a Yard House location, there is currently no path to do so through traditional franchising. Darden has not announced any plans to franchise the Yard House brand as of 2026.
However, this does not mean your restaurant investment goals are out of reach. There are several productive paths forward:
Regardless of which path you choose, understanding the financial requirements for a Yard House-style concept gives you a realistic baseline for planning your investment.
Important Note: While Yard House does not franchise, the investment costs for comparable large-format casual dining or craft beer restaurant concepts range from $1.5 million to $5 million or more in total startup costs. Understanding these figures helps you determine the financing structure you will need.
Even though Yard House does not offer franchises, researching the Yard House franchise cost gives entrepreneurs critical benchmark data for the large-format casual dining sector. Here is a realistic breakdown of investment costs for opening a restaurant concept comparable to Yard House:
| Investment Category | Estimated Cost Range |
|---|---|
| Leasehold Improvements / Build-Out | $800,000 - $2,500,000 |
| Kitchen Equipment | $200,000 - $500,000 |
| Bar Equipment and Draft System | $75,000 - $200,000 |
| Furniture, Fixtures, and Decor | $150,000 - $400,000 |
| POS System and Technology | $25,000 - $75,000 |
| Initial Inventory (Food and Beverage) | $30,000 - $80,000 |
| Signage and Branding | $20,000 - $60,000 |
| Pre-Opening Labor and Training | $50,000 - $150,000 |
| Working Capital (3-6 months) | $100,000 - $300,000 |
| Licenses, Permits, and Legal Fees | $25,000 - $75,000 |
| Total Estimated Investment | $1,475,000 - $4,340,000+ |
These figures reflect industry benchmarks for large-format casual dining concepts that compete in the same market segment as Yard House. The wide range reflects variables including location size, market, construction costs, and build-out complexity. High-cost markets like New York, Los Angeles, and San Francisco will push totals toward the top of the range or beyond.
Yard House-style concepts depend on strategic placement. Prime locations in entertainment districts, high-traffic retail centers, or near sports venues command premium rents. Typical annual rents for a 10,000-square-foot restaurant in a Class A retail center can range from $300,000 to $800,000 per year in major markets, adding significant ongoing costs to your financial model.
Many landlords require three to six months of rent as a security deposit, plus tenant improvement allowances that may or may not offset build-out costs. Negotiating favorable lease terms is often as important as securing financing.
Opening a large-format casual dining concept requires a multi-layered financing approach. Very few investors fund restaurant openings entirely from personal savings. Here are the primary financing products available to restaurant entrepreneurs:
SBA 7(a) and SBA 504 loans are among the most favorable financing options for restaurant investors. These government-backed loans offer longer terms and lower interest rates than conventional alternatives, making them ideal for capital-intensive restaurant projects.
Restaurant equipment - from commercial kitchen ranges to draft beer systems - can often be financed separately from your main business loan. Equipment financing preserves working capital and keeps your cash flowing during the critical early months.
A business line of credit provides flexible access to capital for managing day-to-day expenses, seasonal cash flow gaps, and unexpected costs. Restaurant operators frequently use lines of credit to bridge gaps between vendor payments and customer receipts.
Term loans from Crestmont Capital and other alternative lenders can fund leasehold improvements, working capital, and other startup costs with faster approval timelines than traditional banks.
If you plan to purchase your restaurant property rather than lease, commercial real estate loans provide the capital needed to acquire the building. This strategy works particularly well in markets where ownership makes more long-term financial sense than leasing.
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Apply NowThe U.S. Small Business Administration offers loan programs specifically designed to help small business owners, including restaurant operators, access capital that might otherwise be unavailable from conventional lenders. The two most relevant programs for restaurant investors are:
The SBA 7(a) program is the most versatile SBA loan product, allowing borrowers to use funds for almost any legitimate business purpose - including restaurant construction, equipment, working capital, and even business acquisition. Key features include:
SBA 7(a) loans are particularly attractive for restaurant operators because the longer repayment terms reduce monthly payment obligations, improving cash flow during the critical early years. If you are financing a restaurant concept that competes with Yard House, an SBA 7(a) loan may cover a significant portion of your startup costs.
Learn more about SBA loans at Crestmont Capital to explore your eligibility and borrowing capacity.
If your restaurant project involves purchasing real estate or major fixed assets, the SBA 504 program provides long-term, fixed-rate financing for up to 40% of eligible project costs. The structure involves:
This structure is ideal for restaurant operators purchasing their building, as it locks in favorable long-term rates and reduces the equity requirement compared to conventional commercial real estate loans.
The kitchen and bar equipment needed for a Yard House-comparable restaurant represents a significant portion of startup costs. Commercial ranges, refrigeration units, dishwashing systems, walk-in coolers, draft beer systems, and POS technology can easily total $275,000 to $700,000 for a large-format concept.
Equipment financing allows restaurant owners to fund these purchases while preserving working capital for operations. Key advantages include:
Crestmont Capital specializes in equipment financing for restaurant operators, with approval timelines often measured in days rather than weeks. Whether you are financing a commercial draft beer system, a high-capacity commercial kitchen, or a complete restaurant technology suite, we can structure a solution that fits your cash flow projections.
Pro Tip: Many first-time restaurant operators underestimate equipment costs by 20% to 30% due to installation fees, ventilation requirements, and ancillary supply costs. Always build a 15% to 20% contingency into your equipment financing request.
Even well-funded restaurant launches frequently encounter cash flow challenges in the first six to twelve months. Pre-opening expenses pile up before a single dollar of revenue arrives, and the ramp-up period after opening can be slower than projected. A business line of credit provides a financial safety net during this critical period.
Here is how restaurant operators typically use working capital financing:
According to CNBC, approximately 60% of restaurants fail within the first year, with cash flow mismanagement cited as a leading cause. Securing adequate working capital before you open significantly improves your odds of survival and success.
Crestmont Capital offers working capital loans and lines of credit with flexible terms designed for the restaurant industry's unique cash flow patterns. Apply in minutes and get a decision in as little as 24 hours.
Restaurant financing eligibility varies by product and lender. Here are the general qualification benchmarks for the main financing options available to restaurant investors:
At Crestmont Capital, we evaluate each application holistically - looking beyond credit scores to consider your experience, business plan quality, market opportunity, and financial trajectory. We offer small business loans tailored to the restaurant and hospitality industry, with funding as fast as 24 to 48 hours for qualified borrowers.
If your credit score needs improvement before applying, check out our bad credit business loan options, which can help you secure capital even if your credit history is less than perfect.
$1.5M - $4.5M
Total Startup Investment
7,000 - 12,000
Square Feet (Typical)
100+
Beers on Tap (Yard House)
20% - 35%
Typical Beverage Margin
10% - 20%
SBA Down Payment
24 - 48 hrs
Crestmont Funding Speed
Since Yard House does not offer franchising, many investors looking for a comparable investment opportunity explore these franchisable alternatives in the upscale casual dining and sports bar segment:
Twin Peaks is a sports lodge-themed restaurant and bar concept with over 90 locations nationwide. The brand emphasizes a large beer selection, scratch-made food, and sports programming. Twin Peaks offers franchise opportunities with total investment costs ranging from approximately $2 million to $6 million depending on location and build-out requirements.
Walk-On's has expanded aggressively through franchising, with a Southern hospitality angle on the sports bar format. Total investment for a Walk-On's franchise typically ranges from $2.7 million to $5.5 million. The brand has received strong marks from franchisees for operational support and brand recognition.
Arooga's offers franchise opportunities for operators looking to enter the sports bar segment with a health-conscious food twist. The concept emphasizes chicken wings, burgers, and craft beer alongside an extensive TV sports programming setup.
BWW remains one of the most recognizable sports bar brands in America. While investment costs are substantial - typically $1.8 million to $5 million - the brand recognition and marketing support make it attractive to experienced restaurant operators. You can read our Buffalo Wild Wings franchise loan guide for detailed financing information.
An emerging concept in the craft beer restaurant space, Thirsty Buffalo offers franchise opportunities with a lower investment threshold than some of the larger established brands, making it accessible to first-time restaurant franchise investors.
For any of these concepts, Crestmont Capital can structure financing packages that combine SBA loans, equipment financing, and working capital lines of credit. Our team has experience financing restaurant franchise investments across dozens of concepts. Browse our Firehouse Subs franchise loan guide for an example of how we structure financing for established food service concepts.
Crestmont Capital Tip: When comparing franchise alternatives to Yard House, evaluate total investment cost, royalty structure, territory exclusivity, and the franchisor's Item 19 financial performance representations. These factors together determine the true return on your restaurant investment.
Experienced restaurant investors rarely rely on a single financing source. A well-structured capital stack for a Yard House-comparable concept typically looks like this:
This approach minimizes the equity required from the investor while maximizing financing leverage and maintaining operational flexibility. Fast business loans from Crestmont can often bridge timing gaps between different components of your capital stack.
Lenders financing large-format restaurant concepts pay close attention to the borrower's industry experience. For a Yard House-comparable investment, expect lenders to evaluate:
According to U.S. Census Bureau data, the full-service restaurant industry employs over 5.5 million workers and generates hundreds of billions in annual revenue - making it one of the most active sectors for small business lending despite its competitive nature.
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Apply NowNot all restaurant financing products are created equal. Here is how the major options compare for a Yard House-comparable restaurant investment:
| Financing Type | Best For | Typical Rates | Speed |
|---|---|---|---|
| SBA 7(a) | General startup costs | Prime + 2.75-4.75% | 30-90 days |
| SBA 504 | Real estate and equipment | Fixed 5-7% | 60-120 days |
| Equipment Financing | Kitchen and bar equipment | 5-15% | 1-5 days |
| Business Line of Credit | Working capital | 7-25% | 1-5 days |
| Term Loan | Specific capital needs | 8-30% | 1-3 days |
For large-format restaurant investments in the $2 million to $5 million range, most operators combine an SBA loan as the primary instrument with equipment financing and a working capital line to create a comprehensive capital stack.
Our team at Crestmont Capital helps restaurant investors structure optimal financing packages based on their specific concept, location, credit profile, and timeline. Check out how we financed a similar restaurant investment in our First Watch franchise loan guide.
No. Yard House is a wholly owned subsidiary of Darden Restaurants and does not offer franchise opportunities. All Yard House locations are company-owned and operated. If you want to invest in a similar concept, you will need to explore independent restaurant development or alternative franchisable brands in the casual dining and sports bar segment.
What is the Yard House franchise cost?Since Yard House does not franchise, there is no official franchise cost. However, based on comparable large-format casual dining concepts with a similar profile (7,000 to 12,000 square feet, extensive bar program, premium positioning), total investment typically ranges from $1.5 million to $4.5 million or more depending on market, location, and build-out requirements.
What financing is available for opening a large casual dining restaurant?Restaurant investors have several financing options including SBA 7(a) loans (up to $5 million), SBA 504 loans for real estate and equipment, equipment financing, business lines of credit, and term loans. Most large restaurant projects use a combination of these products to optimize costs and cash flow.
Can I get an SBA loan to open a sports bar or casual dining restaurant?Yes. SBA 7(a) and SBA 504 loans are commonly used by restaurant operators to fund startup costs, leasehold improvements, equipment, and working capital. You will need a solid business plan, relevant industry experience, and a personal credit score of 650 or higher for most SBA programs. Some lenders require a 10% to 20% equity injection.
How much working capital do I need to open a Yard House-comparable restaurant?Most lenders and industry experts recommend having three to six months of operating expenses in reserve as working capital. For a large-format casual dining concept, this typically means $100,000 to $300,000 in accessible cash or credit beyond your construction and equipment budget. A business line of credit can serve this purpose effectively.
What credit score do I need to qualify for restaurant financing?Credit requirements vary by product. SBA loans typically require a 650+ personal credit score. Equipment financing may be available starting at 600. Alternative lenders like Crestmont Capital evaluate applicants holistically, considering experience, business plan quality, and cash flow in addition to credit scores. We work with a wide range of credit profiles.
How long does restaurant financing take to close?Financing timelines vary significantly. Equipment financing and business lines of credit through Crestmont Capital can close in 24 to 72 hours. SBA loans typically take 30 to 90 days due to government processing requirements. Plan your financing timeline accordingly when negotiating lease dates and construction start times.
What franchisable restaurants are similar to Yard House?Several franchisable concepts compete in Yard House's market segment including Twin Peaks, Walk-On's Sports Bistreaux, Buffalo Wild Wings, Bar Louie, and Arooga's Grille House and Sports Bar. Each offers different investment levels, territory structures, and operational support systems. Researching multiple options before committing allows you to find the best fit for your market and investment profile.
Can I finance restaurant equipment separately from my main business loan?Absolutely. Equipment financing is commonly used by restaurant operators to fund kitchen equipment, bar systems, POS technology, and refrigeration units separately from their primary business loan. This approach preserves working capital and often offers favorable rates since the equipment serves as collateral for the loan.
Do I need restaurant industry experience to qualify for financing?For SBA loans, most lenders strongly prefer borrowers with relevant food service or hospitality management experience, especially for large investments. Alternative lenders like Crestmont Capital are more flexible. Partnering with an experienced restaurant operator or hiring a proven GM can help offset limited personal experience when applying for restaurant startup financing.
What documents do I need to apply for restaurant financing?Common documentation requirements include personal tax returns (2-3 years), business tax returns (for existing businesses), bank statements (3-6 months), personal financial statement, business plan with financial projections, signed lease or letter of intent, and a detailed use of funds breakdown. SBA loans may require additional documentation including environmental assessments for real estate transactions.
Is buying an existing restaurant better than starting one from scratch?Acquiring an existing restaurant offers the advantages of established customer base, existing staff, proven revenue history, and an operational infrastructure. However, you pay a premium for these benefits and inherit any existing liabilities or operational problems. New construction gives you full control over design, concept, and culture but requires more capital and time to reach profitability. Both paths can be financed effectively through Crestmont Capital.
How does a business line of credit work for a restaurant?A business line of credit gives you access to a predetermined amount of capital that you can draw on as needed and repay over time. For restaurants, it functions like a financial safety net - you only pay interest on the amount you actually use. It is ideal for covering payroll during slow periods, purchasing extra inventory before busy seasons, and managing unexpected expenses without disrupting operations.
What is the best way to structure financing for a $3 million restaurant investment?For a $3 million restaurant project, a common financing structure might include an SBA 7(a) loan for $1.8 million to $2 million covering leasehold improvements and working capital, equipment financing of $400,000 to $500,000 for kitchen and bar equipment, and owner equity of $400,000 to $600,000 as the required down payment. A business line of credit of $100,000 to $200,000 would be established separately for ongoing operational needs.
Can Crestmont Capital help me find the right financing for a restaurant startup?Yes. Crestmont Capital works with restaurant entrepreneurs at every stage - from concept planning to grand opening and beyond. Our team can help you structure an optimal combination of SBA loans, equipment financing, and working capital products tailored to your specific concept, market, and credit profile. Apply online in minutes or call our team to discuss your project.
While Yard House does not offer franchising, the investment interest in Yard House-style casual dining concepts reflects a broader appetite for large-format restaurant experiences that combine premium beverages, elevated food, and high-energy environments. Whether you plan to invest in a comparable franchisable brand or build your own concept from the ground up, understanding the Yard House franchise cost benchmark - $1.5 million to $4.5 million or more - gives you a realistic financial foundation for planning.
The right financing partner makes all the difference. At Crestmont Capital, we specialize in helping restaurant entrepreneurs access the capital they need to bring ambitious concepts to life. From SBA loans that minimize your equity requirement to equipment financing that preserves working capital, our team structures solutions built for the restaurant industry's unique demands.
Do not let financing uncertainty hold you back from your restaurant investment goals. Apply today and discover how Crestmont Capital can help fund your vision - whether it is a Yard House-comparable concept, a proven franchise brand, or a one-of-a-kind dining destination.
Disclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.