1851

According to an article in <a href="https://www.qsrmagazine.com/fast-food/where-steak-n-shake-lost-its-way?utm_campaign=20190226&amp%3Butm_medium=email&amp%3Butm_source=jolt&utm_source=1851franchise.com&utm_medium=article&utm_campaign=steak-n-shake-hopes-a-chick-fil-a-inspired-model-will-right-the-ship-2709281" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank">QSR</a>, CEO of parent company Biglari Holdings, Sardar Biglari, wrote in a February 22 letter to shareholders that the company had withstood &ldquo;heavy losses.&rdquo; In the same letter, Biglari said that &ldquo;Steak &lsquo;n Shake&rsquo;s same-store sales declined 5.1 percent in 2018.&rdquo; Furthermore, &ldquo;Steak &lsquo;n Shake&rsquo;s average-unit volumes have been on the decline, too,&rdquo; according to the article.

Biglari blamed the losses on poor scaling: the brand failed to adapt its operations and kitchen design to increasing volume over time.

&ldquo;We failed customers by not being fast and friendly,&rdquo; Biglari said, according to the article. &ldquo;To be a market leader in the fast food business, we should have paid greater heed to becoming, well, fast,&rdquo; he said.

According to the article, &ldquo;Steak &lsquo;n Shake hopes to take a page out of Chick-fil-A&rsquo;s book to remedy the issue.Earlier in the year, <a href="https://www.qsrmagazine.com/franchising/steak-n-shake-wants-sell-400-corporate-stores-cheap?utm_source=1851franchise.com&utm_medium=article&utm_campaign=steak-n-shake-hopes-a-chick-fil-a-inspired-model-will-right-the-ship-2709281" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank">the brand announced it was franchising all 413 of its company-operated units</a>. Specifically, the initiative centered on a single-unit strategy&mdash;akin to the chicken leader&mdash;in hopes of fostering a system where every operator is fully invested. The owner-operator model sells franchises to managers and other interested parties for just $10,000. But the new operator must split the store&rsquo;s profit with the franchisor,&rdquo; the article said. According to the article, Biglari said that the program &ldquo;would feed the entrepreneurial spirit at Steak &lsquo;n Shake.&rdquo;

Read the full article <a href="https://www.qsrmagazine.com/fast-food/where-steak-n-shake-lost-its-way?utm_campaign=20190226&amp%3Butm_medium=email&amp%3Butm_source=jolt&utm_source=1851franchise.com&utm_medium=article&utm_campaign=steak-n-shake-hopes-a-chick-fil-a-inspired-model-will-right-the-ship-2709281" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank">here</a>.

<div>Photo courtesy of Steak &#39;n Shake on <a href="https://www.facebook.com/steaknshake/photos/a.10150599697315041/10156130989410041/?type=3&amp%3Btheater=&utm_source=1851franchise.com&utm_medium=article&utm_campaign=steak-n-shake-hopes-a-chick-fil-a-inspired-model-will-right-the-ship-2709281" target="_blank" rel="nofollow" target="_blank">Facebook</a>.</div>

Steak 'n Shake Hopes a Chick-fil-A-Inspired Model Will Right the Ship

1851 Franchise

The iconic burger chain saw a 5.1-percent decline in sales for 2018.


steak-n-shake-hopes-a-chick-fil-a-inspired-model-will-right-the-ship

The Growth Coach

Building a Business and a Life With The Growth Coach

building-a-business-and-a-life-with-the-growth-coach

Dillas Quesadillas

The Top 7 Reasons To Buy a Dillas Primo Quesadillas Franchise

the-top-7-reasons-to-buy-a-dillas-primo-quesadillas-franchise

KLA Schools

A Day in the Life of KLA Schools Franchisee Sital Patel

a-day-in-the-life-of-a-kla-schools-franchisee

Keke's Breakfast Cafe

image of keke's breakfast cafe franchise Jon Ahrendt and John Ehrhard

Jon Ahrendt and John Ehrhard To Share Insights on Franchise Growth and Work-Life Balance With Keke’s Breakfast Cafe in Upcoming Webinar

kekes-breakfast-cafe-franchise-ahrendt-ehrhard-webinar

Minuteman Press International

Minuteman Press franchise owners Karen Fraielli and Valerie Chanoux with their 25-year Award.

Minuteman Press Franchisees Celebrate 25+ Years in Warwick, RI

minuteman-press-franchisees-celebrate-25-years-in-warwick-ri

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

How a Steady Economy Could Help Franchisors Plan Their Next Move

how-a-steady-economy-could-help-franchisors-plan-their-next-move

Bed Bath & Beyond - Franchise Expansion - Retail Strategy - 1851 Franchise

Bed Bath & Beyond Launches Franchise Model as Part of Comeback Strategy

bed-bath-beyond-franchise-expansion-retail-strategy

Senior Entrepreneurship - Franchising - 1851 Franchise

Senior Entrepreneurship Is Rising — And Franchising Is a Key Outlet

senior-entrepreneurship-franchising-silver-startups

U.S. Government Shutdown - Impact on Franchises - 1851 Franchise

Government Shutdown Stalls SBA Loans: How the Shutdown Could Impact Franchises

government-shutdown-impacts-sba-loans-tourism-franchises

Subway Franchisees Resist Expensive Remodel Directives

subway-franchisees-resist-expensive-remodel-directives

NJCAR v. Ford - New Jersey Supreme Court Limits Standing Under Franchise Practices Act

New Jersey Supreme Court Limits Standing Under Franchise Practices Act

new-jersey-franchise-practices-act-njcar-v-ford

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Friendly’s Parent Company Acquired by Multi-Unit Franchisee as More Owners Take the Lead in Brand Acquisitions 

friendlys-parent-company-acquired-by-multi-unit-franchisee-as-more-owners-take-the-lead-in-brand-acquisitions

Top Early Childhood Education and Child Care Franchises for 2025 - 1851 Franchise

Top Early Childhood Education and Child Care Franchises for 2025

early-childhood-education-child-care-franchises

Top Education Franchises To Consider for 2025 - 1851 Franchise

Top Education Franchises To Consider Investing In for 2025

top-education-franchises-investment-opportunities

image of franchise deep dive from 1851 franchise on doody calls franchise authority brands

DoodyCalls Franchise Costs, Fees, Profit and Data for 2025

doodycalls-franchise-deep-dive

1851 Franchisee Spotlight graphic with photo of Barb Volk and KidStrong logo

Why This Orangetheory Fitness Franchise Owner Is Developing KidStrong Franchises

kidstrong-franchise-owner-barb-volk-2025

Steak 'n Shake Hopes a Chick-fil-A-Inspired Model Will Right the Ship

MORE STORIES LIKE THIS