This Adored Burger Chain Is Closing 13 More Locations

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If you happen to’ve puzzled why Steak ‘n Shake has disappeared out of your neighborhood, here is why—the Indianapolis-based chain has been on a closing spree. The favored burger joint had 610 eating places nationwide originally of the 12 months, however gross sales have suffered amid the continued COVID-19 pandemic. Steak ‘n Shake completely closed practically 70 areas as of June, and up to date securities filings revealed that 13 areas have shut down for the reason that summer time.

Steak ‘n Shake presently operates greater than 500 areas, in keeping with Restaurant Enterprise. Half of these shops are owned by dad or mum firm Biglari Holdings, whereas the opposite half are operated by franchisees and “franchise companions.” Unfold throughout 28 states, the chain is a hybrid of a sit-down informal eating restaurant and a fast-food drive-thru operation that is best-known for juicy burgers and hand-dipped milkshakes. (Associated: 9 Restaurant Chains That Closed Tons of of Areas This Summer season.)

However Steak ‘n Shake’s struggles lengthy predate the pandemic, with a push to rebrand itself as a quick-service chain introduced as early as 2018. Biglari Holdings closed down greater than 100 areas in 2019 because it shifted to a counter-based service mannequin that would cater to prospects on the go and part out wait workers—a strategic transfer given customer support had been a ache level for the corporate for years. The chain stated its plan hit a roadblock this 12 months on account of funding points. “The funds wanted for the transition are restricted beneath its present debt settlement,” it stated in its latest filings.

It seems as if the chain could also be working out of choices to show issues round in opposition to the pandemic, which might in the end immediate a chapter submitting. “Absent a decision with the lenders, Steak ‘n Shake might have to hunt refinancing choices, which might not be obtainable,” the corporate added. 

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