Introduction
Once a popular burger chain, this fast food restaurant has been struggling to keep up with the competition. With a long history of declining sales, the chain has been unable to keep up with the changing tastes of consumers. As a result, the chain has been unable to maintain its once-strong presence in the fast food industry. In this article, we’ll take a look at why this once-popular burger chain continues to struggle and what you should eat instead.
This Once-Popular Burger Chain Continues Its Losing Streak — Eat This Not That
Once upon a time, a certain burger chain was a popular destination for fast food lovers. But now, it seems that the chain is on a losing streak, as customers are turning away from its offerings. What happened?
The chain in question is Burger King, which has been struggling to keep up with the competition in recent years. The chain has been losing market share to rivals like McDonald’s and Wendy’s, and its sales have been declining for the past few years. Burger King has also been criticized for its lack of innovation, with many customers feeling that the chain has failed to keep up with the changing tastes of the fast food industry.
So, what can Burger King do to turn things around? The chain has been trying to revamp its menu, introducing new items such as plant-based burgers and breakfast sandwiches. But it remains to be seen if these changes will be enough to bring customers back. In the meantime, it’s best to avoid Burger King and opt for healthier, more innovative options.
If you’re looking for a healthier alternative to Burger King, there are plenty of options out there. Fast-casual restaurants like Chipotle and Panera Bread offer healthier, fresher options than traditional fast food chains. And if you’re looking for a burger, you can always opt for a veggie burger or a turkey burger. There are also plenty of healthier fast food options, such as Subway and Chick-fil-A.
So, if you’re looking for a healthier alternative to Burger King, there are plenty of options out there. Just remember to eat this, not that!
After narrowly escaping bankruptcy this year, the burger and milkshake brand Steak ‘n Shake continues to struggle.
According to its latest earnings report, the company has seen a major loss in revenue in its third quarter of this year but said this was expected. After all, the chain is undergoing a major restructuring of operations, which will completely change the core of its brand. Soon, the dining rooms and table service most customers know it for will be completely gone in favor of a quick-service model.
Here’s what’s happening at Steak ‘n Shake and why the chain’s future still seems uncertain. For more, check out 5 Major Fast-Food Chains Falling Out of Favor With Customers.
After years of struggling with declining popularity and a restructuring of its operations, Steak ‘n Shake announced early this year that it may be heading for bankruptcy. The chain ended up avoiding the Chapter 11 filing by repaying $153 million to its debtors and declaring itself “debt-free” in February—but legal drama has followed it since.
Just as soon as it announced settling the remainder of the debt, one of the chain’s creditors took issue with this proclamation. Wilmington Trust, National Association sued Steak ‘n Shake in April, saying that it still owed them $8.3 million and was most certainly not debt-free as claimed. It was only the latest development in the chain’s recent history fraught with legal drama.
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Unfortunately, the chain continues on a downward financial spiral. Its third quarter results show a 27% decline in revenue compared to the same time last year—yes, the chain is doing even worse than it was during the height of the pandemic.
However, to put it into context, a big contributor to these losses is the Steak ‘n Shakes major shift in strategy, which is causing it to shutter locations and transfer the ownership of its company-operated locations to its franchisees. So while customers may be abandoning the brand due to complaints about food and customer service, the chain is also anticipating its operational transition to continue negatively affecting its revenue for some time.
Steak ‘n Shake has been on a shrinking streak since 2018. In fact, earlier this year it was reported that it lost about 12% of its 550 nationwide locations.
The most recent filing shows that the trend continues. Steak ‘n Shake shuttered an additional 16 stores between January and the end of September this year, while its corporate-owned store count, which brings in higher revenue, continues to shrink in favor of franchisee-owned restaurants.
And herein lies one of the major transitions the chain has started on as early as 2018. Parent company Biglari Holdings want to make the burger chain mostly franchisee-owned and is selling off its locations to existing franchise partners for $10,000 and a 50% profit share.
But maybe the biggest change customers who have known the 87-year-old chain for decades is that it is shifting away from the dine-in setup it was known for. That’s right, Steak ‘n Shake is doing away with large dining rooms and transitioning into a quick-service chain that relies mostly on self-service and off-premise sales.
Before COVID even started, the chain began restructuring its locations to function without servers and even attendants behind counters. Instead, customers can now place orders through self-serve kiosks for pickup. The chain was forced to reevaluate its table-service model which was losing money due to labor costs and efficiency.
However, the remodeling of its existing locations with these “advanced self-service” features is another uphill battle, which the company is spending millions of dollars to fund. In the first nine months of the year, Steak ‘n Shake spent almost $30 million dollars on upgrading their locations.
For more, check out the 108 Most Popular Sodas Ranked By How Toxic They Are.