Steak 'n Shake

Steak 'n Shake Operations, Inc.,doing business asSteak 'n Shake, is an Americancasual restaurantchain concentrated primarily in theMidwestern United Stateswith locations also in theSouth,Mid-Atlantic,Western United States,Europe, and theMiddle East. The company is headquartered inIndianapolis, Indiana, and is a wholly owned subsidiary ofBiglari Holdings.As of 2018, 628 Steak 'n Shake restaurants were in operation; of those 414 were corporate-owned, and 214 franchised. The company has since attempted to convert to a fully franchised model.
Restaurant locations have sit-down,drive-thru, and front-window service; they provide a hybrid of fast-food to-go and diner-style sit-down service.  In 2021, the company had 536 locations, but the number had dropped to 493 by March 31, 2023, according to Biglari Holdings; not all of those were in operation at that time.The business model had been shifting away from full-service restaurants as well, toward a drive-thru model and to "counter-service ... featuring kiosks".
Many locations are open 24 hours a day, seven days per week. The menu features primarily burgers and hand-dippedmilkshakes; other entrees, side items, and drinks are also available. The corporation's slogan, "Famous for Steakburgers", refers to its most prominent food item, the Steakburger. The "steak" in the restaurant name comes from the menu item.
A. H. "Gus" Belt (born inMorrisonville, Illinois) founded Steak 'n Shake inNormal, Illinois, in February 1934, after serving four years in the United States Marine Corps. He converted the combinationgas stationandchickenrestaurant that he owned (Shell's Chicken) into a hamburger stand.
Steak 'n Shake's slogan, "In Sight, It Must Be Right", originally referred to Belt's practice of wheeling a barrel of T-bone, sirloin, and round steaks into the public area of his restaurant, then grinding them into burgers in front of his customers—it was intended to reassure customers of the product's wholesomeness as at the time, ground beef was still viewed with skepticism by the general public, based on the likelihood of its having impurities deliberately added to it.
It also assured Belt's customers of the veracity of his "Steakburger" claim. Later patrons were assured that Steakburgers were still made from these ingredients "at our own commissary" for shipment to the restaurants, where the open grill line remained "in sight" to customers.
After having success, Belt purchased a chain of Goal Post restaurants throughoutcentral Illinois, converting them to Steak 'n Shakesand added curb service.
The original building at the intersection of Main Street and West Virginia Avenue was damaged by a fire in the early 1960s but was repaired and its dining room expanded. In the late 1990s, Steak 'n Shake sold the building to theMonical's Pizzacompany.
Steak 'n Shake continued to expand throughoutIllinoisfollowing Belt's death on August 20, 1954.Ownership passing through many hands, including Gus's wife Edith, who ran the chain until 1969; Longchamps, Inc., an East Coaststeakhousecompany that owned the chain from 1969to 1971;and Indianapolis-based Franklin Corporation, led by Robert Cronin, author ofSelling Steakburgers: The Growth of a Corporate Culture. After the acquisition, Franklin moved Steak 'n Shake's headquarters from Normal, Illinois toIndianapolis.
In 1981, Steak 'n Shake and its parent company Franklin were acquired by E. W. Kelley and Associates;the chairmanE. W. "Ed" Kelleyled the restaurant chain until he died on July 4, 2003.
EntrepreneurSardar Biglaritook control of Steak 'n Shake in August 2008 after three years of declining same-store sales and losses of $100,000 per day. He led a turnaround which resulted in 24 straight quarters of increases in same-store sales and profits of $100,000 per day.He focused the brand on burgers, fries and milkshakes, reducing the menu from eight pages to a bi-fold.However the chain ran into more problems in 2016 and onward, with revenue declining sharply.Reasons included under-investment in the restaurants after the deep price cuts of 2008; competition from "fast casual" restaurants likeChipotlewhich aimed for a more high-class experience; and two expensive lawsuits from former managers who accused the chain of misclassifying them as salaried employees and refusing to pay earned overtime.
In 2018, Steak 'n Shake changed its business model to afranchise partner system, with Biglari attempting to turn all of the 400+ company-owned restaurants into franchise operations. Entrepreneurial single-unit operators could take control of an existing Steak 'n Shake for $10,000, an unusually low price, but were required to give the company 50% of the restaurant's profits.Even though it offered the new franchise inducement, the firm remained heavily indebted. As of April 2020, its debt was rated as a low C/D "speculative" grade (colloquially known asjunk bonds) by bond rating agencies.The Washington Postconsidered the chain to be extremely likely to default with a low likelihood of recovering, with the restaurant closings due to theCOVID-19 pandemic in the United Statesbeing an unrecoverable blow to the firm.
The first Steak 'n Shake in the state of Indiana was opened as adrive-in restaurantin Indianapolis in November 1954.As typical for the era it had offered curb (carhop) service in addition to table service and takeout. At the time, Steak 'n Shake had locations in five states.
TheRoute 66 Steak 'n ShakeinSpringfield, Missouri(built 1962), was listed on theNational Register of Historic Placesin 2012.
The company enteredNorth Carolinaopening a franchised location inGreensboroin December 1996.
Steak 'n Shake began inWisconsinwith locations inRacine,Janesville, andMadisonin the late 1990s,but all locations closed by 2004.Another franchiser opened locations inWaukeshaandWauwatosain 2007, but both closed by 2010.The chain has not returned to the state.
After briefly operating a few restaurants inSouth Texasduring the 1970s, Steak 'n Shake returned toTexasby opening locations in theDallas–Fort Wortharea in 2001,in theHoustonarea in 2012,and in theSan Antonioarea beginning in 2013.Steak 'n Shake enteredSouth CarolinaCarolina opening a location inGreenvillein February 2001.
The company enteredOklahomafor the first time by opening a franchise location inEdmondin 2004.
Steak 'n Shake enteredWest Virginiafor the first time by opening a franchise location inBarboursvillein August 2007.
Steak 'n Shake opened its first location inNevadainside theSouth Point CasinoinLas Vegasin July 2010and a second  location inRenoin July 2013.In January 2017, a second Las Vegas location began, the third in Nevada, in the Student Union building on the campus of theUniversity of Nevada, Las Vegasfollowed by a second Reno location, the fourth in Nevada in July 2017.Steak 'n Shake enteredLouisianafor the first timeby opening a location nearBaton RougeinCovingtonin 2011.The company first enteredColoradovia a franchise inDenverin November 2011before the parent company took over the Colorado locations after a lengthy lawsuit between the franchisee and the parent company.
In January 2012, they opened their first and only location in thestate of New YorkonManhattan,adjacent to theEd Sullivan Theaterthen home to theLate Show with David Letterman. Indiana nativeDavid Letterman, an avid Steak 'n Shake fan  frequented the location and often talked about it on his show.The location closed in October 2017, ending the chain's five year presence in the state.The first location inNew Jerseywas opened by a franchise holder in September 2012 inParamus.At the beginning of 2016, a second and third location in New Jersey were opened by the same franchisee inWest Windsor TownshipandHamilton Township;both of those locations quietly disappeared within a year. In September 2017, the original Paramus location, the last location in New Jersey, also closed after a five-year struggle to remain in business.
The first Steak 'n Shake location in the state ofArizonawas opened inTempein October 2013.A second Arizona location was open on the campus of theUniversity of ArizonainTucsonin July 2017.
The first and only location in the state ofMontanaand in the upper plain states, was opened inBillingsin December 2013.The restaurant was forced to close after two and a half years in July 2016 due to poor sales that were blamed on "harsh reviews onsocial media".
Steak 'n Shake expanded toCaliforniain July 2014 by opening a location inVictorville.ALos Angeles Countylocation was opened inSanta Monicain late Octoberand another inBurbankin December of the same year.After a lack of activity for over a year in the highly competitive Californian marketplace, the company announced in April 2016 it expected to open its firstOrange Countylocation, the fourth in California, inAliso Viejoin mid-May.After a short delay, a fifth California location was opened behind schedule inRiversidein August 2016.In March 2017, a 6th location opened inYucca Valley.After 3.5 years of operation, the Victorville location closed abruptly in February 2018 after receiving an eviction notice for failure to pay rent.
In 2015, the company planned a restaurant inNorthern CaliforniainCampbell, California, but local residents delayed it.Because of the delay, the first location in Northern California opened instead inDaly Cityin November 2016.The  firstCentral Californialocation began operating inFresnoin March 2017.A secondSan Francisco Bay Arearestaurant was opened on the campus ofSan Jose State Universityin July 2017.After a long two year delay fighting local anti-development activists, the company finally opened their long expected restaurant in Campbell in September 2017.After four months of operation, the Daly City location closed as well as the Campbell location in January 2018.This left the San Jose location on the campus of SJSU as the only store in the Bay Area.After 10 months of operation, the lone Central California location inFresnoalso closed in January 2018.
In June 2015, the first location inMarylandopened inMillersville.Two years later, the struggling Maryland franchisee filed forvoluntary bankruptcyin June 2017 while still remaining open.The location finally closed in January 2018 after the Circuit Court forAnne Arundel Countyseized the restaurant for non-payment on loans and taxes. The restaurant and contents were auctioned off by the court on January 31, 2018.Later in the year, the franchise owner was arrested after theFBIfiled an indictment against the franchise owner for plotting to kill his wife and to burn the restaurant down in an attempt to receive insurance money for his then failing business.In January 2019, the restaurant reopened under new management.In April 2019, the same franchise owner of the Millersville location announced plans to open a second location inWhite Marshby the summer of 2019.
The first location in thePacific Northwestopened inSeattlein May 2016;it went defunct after four years.
In September 2018, the first location inDelawarewas opened inMiddletown.
In March 2019, the first location inNebraskawas opened on the campus ofUniversity of Nebraska–Lincoln.
In March 2019, Steak 'n Shake announced plans to open its first restaurant inWashington, D.C., inside theRayburn House Office Buildingto serve House members, staffers, and the public who pass "through security and a metal detector".The location officially opened for business in the first week of September 2019.In January 11, 2021, the first Steak N Shake location in the Des Moines Suburb ofWest Des Moinesopened, joining seven other stores inIowa, with strict measures at the time including no eat-in dining.
In December 2013, Steak 'n Shake opened a corporate office inMonte Carlo,Monaco, to support its expansion inWest AsiaandEurope.
In October 2012, Steak 'n Shake announced its first international expansion agreement with plans to open forty locations in theUnited Arab Emirates. The first of these locations opened inDubaiin 2013,but closed in a little more than a year. Only two out of the original  40 locations planned were ever opened in the UAE. Both closed in January 2015.
The brand also announced in December 2013 a 50-unit franchise agreement inSaudi Arabiawith AB Holdings. The first location inRiyadhwas expected to open in the first half of 2014.
The first location in the Persian Gulf country ofKuwaitwas opened in December 2014.This location appeared to have been closed after less than three years of operation.
The first location inQataropened at the Tawar Mall in November 2017.
The first two European locations opened inCannes, France, in May 2014and on the island ofIbizainSpainin June 2014.
The second location inFrancewas opened inMarseillein December 2014.A third location in France was opened inToulonin April 2016and was quickly followed in June by the openings of a fourth and fifth location inCaenandRueil-Malmaisonrespectively,in October by the openings of a sixth location at theCité Europeshopping centre inCoquelles,and in November of a seventh location inFenouillet.The eighth and ninth location in France were started inBordeauxandAngletrespectively in early 2017.A second location in Marseille was opened in December 2017.A third location inMarseille, the 17th location in France, was opened in May 2018.
The second location in Spain was opened inMadrid, the capital, in September 2015followed by one inChurra,Murcia, in October 2015.
The first location inItalyopened inMilanin December 2015.A second location was opened inPeschiera del Gardain May 2016.A third location was opened inCastione Andevennoin September 2016.
In July 2016, the first location inPortugalopened inMontijo, nearLisbon(closed in 2023).
In December 2016, the first store in theUnited Kingdomopened inChester,Cheshire, England.The only location in the UK was closed 21 months later in August 2018.
Between 2010 and 2015, Steak 'n Shake became involved in lawsuits with several of itsfranchiseesconcerning mandatory menu prices and mandatory food sourcing.  As of August 2013, five lawsuits had been filed. The first lawsuit began in 2010; it was filed by Stuller, Inc., theIllinoisfranchisee that is the oldest franchisee in Steak 'n Shake's history. Stuller won apreliminary injunctionthat went to the7th Circuit Court of Appealsin August 2012.Three more franchisees filed suit in April 2013—Druco Restaurants based inSt. Louis, People Sales & Profit Co. based inGeorgia, and Scott's S&S Inc. inPennsylvania.A settlement was reached with these franchisees in 2014, but terms of the settlement were not made public.
Steak 'n Shake filed suit againstDenverfranchisees Larry and Christopher Baerns in July 2013 over the same issues, with a counterclaim soon after.Steak 'n Shake won its lawsuit in U.S. District Court against the Baerns when the judge ruled that the Baerns intentionally overcharged customers.The complaints by the franchisees also question whether Steak 'n Shake promised franchise results that could never actually be achieved under its policies.
286 managers in the St. Louis area filed and won a lawsuit against Steak 'n Shake on grounds that they were misclassified asexempt employeesunable to earn overtime.Steak 'n Shake had to pay $7.7 million in damages.  They were sued again by an even larger group of 1100+ managers on similar grounds; as of 2019, that case was pending.