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like a STEAK to the heart?!.....'Steak 'n Shake' permanently closes 57 locations....
Posted by: NewtonMP2100
Date: May 12, 2020 08:18AM
....due to drop in business.....


Steak 'n Shake permanently closes 57 restaurants amid coronavirus pandemic

.....Steak 'n Shake has permanently closed 57 restaurants amid slumping sales during the coronavirus pandemic.

The Indianapolis-based casual restaurant chain announced in the latest earnings report by its parent company, San Antonio-based Biglari Holdings Inc., that it has closed 51 corporate-owned locations and six franchise-owned locations.

Biglari Holdings reported impairment charges of $10.3 million as a result of closing the 51 locations, according to the report.

"The COVID-19 pandemic had an adverse effect on our restaurant operations, thereby resulting in the evaluation of company operated restaurants for recoverability,'' the report states.

The company also sold one location to a franchisee and 10 locations to operating partners, reducing its total number of restaurants to 553 from 624 a year ago.

Steak 'n Shake has been offering takeout, delivery and drive-thru options since closing its dining rooms nationwide on March 17 as a result of the pandemic. In addition, 62 company-owned stores were temporarily closed.

The company also noted that the ongoing pandemic may cause further issues. Burger chains like Wendy's have already been affected by beef shortages caused by COVID-19 outbreaks at processing facilities around the country.

"However, the COVID-19 pandemic could cause disruptions to our supply chain,'' the report states. "Moreover, we cannot predict how the outbreak of COVID-19 will alter the future demand of our products."

Steak 'n Shake, which was founded in 1934 and acquired by Biglari Holdings in 2008, also reported a loss of $7.9 million in the first quarter, which was actually less than its $13.3 million loss from the same period last year. Revenue from sales at Steak 'n Shake also dropped 34% to $114.1 million, according to the report.

Biglari Holdings, which also owns companies in the insurance and oil and gas sectors as well as Maxim magazine, reported a net loss of $137.9 million in the first quarter ended March 31.



SHAKEN.......to the core.......?!



_____________________________________

I reject your reality and substitute my own!
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Re: like a STEAK to the heart?!.....'Steak 'n Shake' permanently closes 57 locations....
Posted by: rz
Date: May 12, 2020 09:07AM
They had already shut down a couple of locations here prior to the pandemic. My kid used to love S&S, but all of the sudden he seemed to lose interest in it a few years ago. I think it was because they took cottage cheese off the menu as one of the side items. We haven't been in maybe 3 years. I used to hate going there because I didn't really care for their food but when you have a picky eater, you go where he'll eat.

Their service was always really bad too, so I'm sure that didn't help things.
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Re: like a STEAK to the heart?!.....'Steak 'n Shake' permanently closes 57 locations....
Posted by: mikebw
Date: May 12, 2020 09:32AM
Not to be confused with Shake Shack.
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Re: like a STEAK to the heart?!.....'Steak 'n Shake' permanently closes 57 locations....
Posted by: rgG
Date: May 12, 2020 10:43AM
Our closest one closed many months ago.





Roswell, GA (Atlanta suburb)
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Re: like a STEAK to the heart?!.....'Steak 'n Shake' permanently closes 57 locations....
Posted by: JPK
Date: May 12, 2020 12:01PM
I would not consider this a COVID-19 death, but certainly a death with COVID complications.

They were closing restaurants prior to this mess and and have been struggling financially for some time.

JPK
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Re: like a STEAK to the heart?!.....'Steak 'n Shake' permanently closes 57 locations....
Posted by: raz
Date: May 12, 2020 03:31PM
All my local ones have been shuttered for at least a year.The signs said 'Franchise Opportunity'.

Does anybody know how deep into debt the Biglari Holding buyout put them?



--------------

Embarassing myself on the Internet since 1978.
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Re: like a STEAK to the heart?!.....'Steak 'n Shake' permanently closes 57 locations....
Posted by: Acer
Date: May 12, 2020 08:49PM
It's no In-N-Out, but it was cheap, and tasty enough. The service was..serviceable.
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Re: like a STEAK to the heart?!.....'Steak 'n Shake' permanently closes 57 locations....
Posted by: ADent
Date: May 13, 2020 10:38AM
They closed the one near us.

It was a franchise location, but corporate sued them because they were charging more than the "official" prices on the menu. After a bit they agreed to charge "official" prices, but not bundle anything. Still too much for corporate and shut it down.

It closed for a month or so and was re-opened as a corporate store with "official" prices.

Not sure how they made money charging $4 for a burger and fries with table service.

Last time we went they only had one server working and it took forever and the tables w/o customers were covered in dirty dishes (ie not bussed).

It closed last fall.

There is a new Freddy's across the street and In and Out is coming about a mile down the street this summer.

Their shakes are bad because they use ice milk shake base that is a bit icy, though supposedly you could ask for an 'ice cream' milk shake.
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