A BELOVED burger chain has made some significant adjustments to stay relevant after mass shutdowns.
The string of closures took place over recent years as it worked to overcome some financial woes.
A beloved burger chain is staging a comeback this year (stock image)[/caption]
Steak ‘n Shake first opened in 1934 (stock image)[/caption]
It recently introduced self-service kiosks for customers[/caption]
Steak ‘n Shake began back in 1934 thanks to founder Gus Belt, who opened its very first location in Normal, Illinois, about 133 miles southwest of Chicago.
It’s name came from a short way to describe the steak-burger and hand-dipped milkshakes it offered.
Belt would even “wheel in a barrel of steaks (including round, sirloin, and T-Bones) and grind the meat into burgers right in front of the guests” back in the day, according to Steak ‘n Shake’s website.
By the 1990s, it had grown to over 300 locations nationwide, but it didn’t reach its peak until 2017 with around 626 restaurants.
Starting in 2018, the burger chain encountered some challenges.
Over the next seven years, Steak ‘n Shake’s location count went from about 626 to 426, closing 200 stores, per data collected by QSR and FSR Magazine editorial director Danny Klein.
“The last few years have been eventful for Steak ‘n Shake, to put it mildly,” Klein wrote in his analysis.
SELF-SERVICE FOCUS
Arguably the biggest and first change Steak ‘n Shake made was in 2020, amid the coronavirus pandemic.
The chain confirmed that it would be ending table service after 78 years, a shocking turn, as it had previously offered drive-thru service and sit-down dining assisted by a waiter or waitress.
Instead, it transitioned to self-order kiosks and strictly counter service, making Steak ‘n Shake more of a fast casual chain.
It also introduced delivery and takeout services.
These decisions definitely saved the brand money, reducing costs and improving efficiency overall, but it’s a risky move to take away part of the dining experience for consumers.
Steak ‘n Shake had positioned itself in the past to offer an elevated meal experience at the same price as affordable fast food chains.
Now, there isn’t as much of a differentiator.
Restaurant closures in 2025
Denny’s – Denny’s has confirmed that up to 150 locations are set to close in the US by the end of the year as many of them are no longer profitable.
Red Lobster – The chain has said that it plans to close over 100 stores across the country this year as new CEO Damola Adamolekun takes over.
TGI Friday’s – TGI Friday’s is still being forced to shutter locations thanks to a bankruptcy filing, including 30 in April alone.
Applebee’s – This chain is projecting a loss of 20 to 35 Applebee’s spots in 2025 but is teaming up with IHOP to introduce dual-branded locations with a curated menu of the two’s best items.
Noodles & Company – This emporium is set to close between 17 and 21 locations in 2025 following a difficult 2024.
BUSINESS MODEL & BEEF TALLOW
Additionally, Steak ‘n Shake has adopted a franchise business model similar to competitors like Chick-fil-A.
Franchisees can get their own unit for a low up-front investment of around $10,000 and split profits with corporate, as Klein noted in his findings.
Third, and more recently, Steak ‘n Shake went back to using beef tallow to fry up shoestring fries, onion rings, and chicken tenders.
It had previously used seed oils, but wanted to move away from that, except the frozen products are still coated in seed oils before reaching the restaurant for the final fry-up.
PAYMENT UPDATE
Lastly, Steak ‘n Shake now accepts cryptocurrency, specifically Bitcoin, as a form of payment, per Forbes.
Bitcoin working its way into becoming a prominent form of digital currency is on the rise, and some top banks are considering creating their own stablecoin.
Overall, the moves seem to be working, and Steak ‘n Shake could be positioned for a comeback in the coming years.
“Whether it’s changes maturing or Steak ‘n Shake gaining publicity (and customers) from some of its recent moves, like going to beef tallow or accepting Bitcoin payments, same-store sales have started to climb,” Klein noted.
Net sales for the first six months of 2025 were $88.47 million, up 14.8% compared to the same time in 2024.
Other burger chains aren’t having the same luck.
Burger-Fi filed for bankruptcy in September of last year and began abrupt closures in several states.
A fan-favorite restaurant chain opened by major Hollywood actor is also shuttering 79 locations.
