The total up-and-running location count has fallen from 626 to 520 since December 31, 2018.
In August 2018, Steak ‘n Shake announced plans to temporarily close and refranchise all 413 of their corporate-owned stores according to a report in QSR Magazine. Following Chick-fil-A’s model of single-unit, operator-run stores, the brand was offering franchise ownership for only $10,000 with a 15% sales lease and 50/50 profit split. The parent company Biglari Holdings has attributed recent decreases in net sales to these temporary store closures, but the brand is also lagging in both same-store sales and comps.
According to Steak ‘n Shake CEO Sardar Biglari, the brand is trying to avoid absentee owners in order to maintain quality standards across the board. “We limit a franchisee to a single location, based on the belief that focus, along with passion, determination, and persistence, will translate into excellent employee and customer satisfaction,” said Biglari. As of June 30, 213 of the brand’s stores are franchised while 307 are company run. The number of temporarily closed company-owned stores has risen to 103.
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