90-Year burger chain closes 200 restaurants, embraces beef fat

1934: First Steak ’n Shake opened in Normal, Illinois.
1990s: Roughly 300+ locations in the U.S.
2017 : Peak at about 628 restaurants.
2020: Dropped below 550 locations (Covid closures and franchising shift).
2022: About 456 locations.
2024: 416 restaurants

Steak ‘n Shake arguably still exists because its current owners have been willing to balance a reverence for the past with a willingness to embrace the future (or at least the present).

The company embraced its past by accepting that a chain with the words “steak” and “shake” in its name would probably opt for taste over health. That's why the company embraced using beef tallow to fry its fries.

That was a change made last year that not only produced (most would say) better fries, but also a return to normal for the chain. Steak ‘n Shake's name means something that traces its history all the way back to 1934.

“For over 85 years, the company’s name has been symbolic of its heritage. The word ‘steak' stood for ‘Steakburger.' The term ‘shake' stood for hand-dipped Milk Shakes,” the chain shared on its website.

Steak ‘n Shake was founded by Gus Belt, who wanted to serve his customers the finest burgers and shakes in the business.

“To prove his point that his burgers were exceptionally prime, he would wheel in a barrel of steaks (including round, sirloin, and T-bones) and grind the meat into burgers right in front of the guests. Hence arose the origin of our famous slogan, ‘In Sight It Must Be Right,'” it added.

Steak ‘n Shake offers fries cooked in beef tallow.

Image source: Pixabay

Steak ‘n Shake hits hard times

QSR and FSR Magazine Editorial Director Danny Klein recently took a deep dive into Steak ‘n Shake. It has been a bumpy ride.

“The last few years have been eventful for Steak ‘n Shake, to put it mildly. The brand removed table service after 78 years, added kiosks, closed 200 stores from 2018 through 2024, going from 626 locations to 426,” he shared.

Dropping table service obviously saved the chain some money, but it also sort of downgraded the experience of eating there. Dining at Steak ‘n Shake used to to feel like an elevated meal at a value price compared to McDonald's, Wendy's, or Burger King.

Now, eating at the chain feels like any other fast-food joint, which impacts the perceived value.

Perhaps most importantly, Steak ‘n Shake has adopted a model that's clearly based on how Chick-fil-A franchises.

“It also implemented a franchise-partner model where single-unit operators pay a low upfront investment ($10,000) to take on a store and split the profits with corporate —the idea being to remove absentee ownership from the system,” Klein shared.

Steak ‘n Shake has an uneven comeback

Klein made it clear that while Steak ‘n Shake has shed a third of its stores and made other major changes, its path forward has not been easy.

“As you'd imagine, this hasn't always been a smooth journey. Sales have been rocky. Management was overhauled. Units continued to shutter,” he wrote.

But, the chain has also made some moves that got a lot of media attention. It returned, for example, to using beef tallow to make it fries.

That's a controversial move that got people talking about Steak ‘n Shake in a way that has not happened in what feels like decades. It also got some attention for deciding to accept Bitcoin as payment (the ultimate publicity stunt).

Those moves, however, appear to be working.

“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. The brand said comps gained 10.7% in Q2. They were up 3.9% in Q1 and 5.4% in Q3 2024. The comparable Q2 2024: 7%,” he added.

The chain has turned its business around, according to data from QSR Magazine.

Steak ‘n Shake sales numbers

The brand had gone from $34.717 million in operating earnings in 2016 to $431,000 the following year.
It then slid into the red at negative $10.657 million, $18.575 million, and $4.587 million in the ensuing three fiscal calendars.
Steak ‘n Shake returned to positive territory in 2021 at $13.525 million, followed by $11.478 million in 2022, and $26.170 million and $20.099 million in 2023 and 2024, respectively.

The numbers continue to look up.

“Net sales for Q2 and the first six months of 2025 were $46,8 million and $88,47 million, respectively, representing an increase of $6,043 or 14.8% and $8,9 million or 11.2%, compared to prior-year results,” the chain shared.

Steak ‘n Shake's history at a glance

2008: Biglari Holdings takes over after financial losses. (500 locations)
2018–2019: Sales plunge; nearly 100 stores closed or “temporarily” shuttered for franchise conversion. (600 peak down to 500)
2020: Pandemic accelerates closures and revenue decline. (450 locations)
2021: Heavy debt restructured to avoid bankruptcy. (400 locations)
2022–2024: Smaller footprint, still pressured financially. (300 locations)