Steak 'n Shake
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| Steak 'n Shake | |
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| Type | Public (NYSE: SNS) |
| Founded | 1934 |
| Headquarters |  Indianapolis, IN |
| Key people | Gus Belt, Founder |
| Industry | Food |
| Products | Fast food |
| Employees | 7,667 (2007) [1] |
| Website | www.steaknshake.com |
Steak 'n Shake diner/fast food restaurant chain located throughout the Midwestern and Southern United States. Typical restaurant locations have both a drive-thru and front-window service, resulting in an atypical mix of fast-food to-go service and diner-style sit-down service. Most Steak 'n Shake restaurants are open 24 hours a day. Their slogan "Famous for Steakburgers" refers to their signature menu item, the Steakburger, so called because it is made from a mixture of T-bone, sirloin, and strip steak. Steak 'n Shake's prices are comparable to diners and other sit-down food establishments, which are generally higher than fast food restaurants.
Steak 'n Shake restaurants are operated by Steak 'n Shake Operations, Inc., a wholly owned subsidiary of The Steak 'n Shake Company (NYSE: SNS), located in Indianapolis, Indiana. The company currently operates 490 (as of September 2007) restaurants (including 54 franchises) in 21 states.
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[edit] History
Gus Belt founded Steak 'n Shake in Normal, Illinois, in February 1934, when he converted the combination gas station/chicken restaurant he owned (Shell's Chicken) into a hamburger stand. The original building, on the west side of Main Street between Virginia Avenue and the creek, was damaged by fire in the early 1960s, but was rebuilt. The replacement building was demolished in late 2005; the Steak 'n Shake location was closed and Monical's Pizza built a new building in its place. Gus Belt was born in the small town of Morrisonville, Illinois. Steak 'n Shake's slogan "In Sight It Must Be Right" originally referred to Belt's practice of grinding the beef used in the steak burgers in the public area of the restaurant and in line-of-sight of the customers. This practice was intended to reassure customers of the wholesomeness of the product (in a time when ground beef was still considered with skepticism and concern by the public, based on the possibility of hidden impurities and defects). This practice also helped assure customers of the veracity of Belt's "steak burger" ingredients claim — i.e., because they could see for themselves that he was grinding steak into the hamburger meat, along with more common cuts. Today, the slogan is generally thought to refer to Steak 'n Shake's open grill line.
Following the success of the original restaurant, Belt purchased a chain of "Goal Post" restaurants throughout Central Illinois, converting them into Steak 'n Shake restaurants. He also added curb service at this point.
Steak 'n Shake continued to expand throughout Illinois following the death of its creator in 1954, with ownership passing through many hands, including: Gus's wife Edith Belt (who ran the chain until 1969), Longchamps, Inc. (an east coast steakhouse company who owned the chain from 1969 to 1971) and the Franklin Corporation, led by Robert Cronin, author of Selling Steakburgers: The Growth of a Corporate Culture. In 1981, Steak 'n Shake was sold by Franklin to E.W. Kelley and Associates, whose chairman, E.W. "Ed" Kelley was considered largely responsible for the growth of the restaurant until his death on July 4, 2003. The brand had been declining during the late 1970's, and in 1984 was in the red. Around that time the headquarters had been transferred from Bloomington, Illinois to Indianapolis, Indiana. Kelley hired the former head of Circle K to turn the business around. Steak 'n Shake rapidly improved and expanded throughout the 1990's and into 2000. In early November of 2004, The Steak 'n Shake Company entered into an agreement to buy out its largest franchisee, Kelley Restaurants, Inc. (which is owned by the late Mr. Kelley's family). KRI's 16 sites will be purchased for about $1 million each; they are mainly in Georgia and North Carolina.
[edit] On The Menu
Steak 'n Shake is most widely known for their steakburgers. Other items include melts, club sandwiches, chili macs (a combination of spaghetti and chili) and an assortment of sides such as fries, onion rings, or chili.
Steak 'n Shake is also known for their Milkshakes . The shakes are made with unflavored low-butterfat ice cream which is then blended with milk and flavored syrups (chocolate, vanilla, etc...). Besides classic shakes, Steak 'n Shake also offers "Side by Side" milkshakes, "Sippable Sundaes", "Bits and Pieces", and "Fruit and Frozen Yogurt" shakes.
In 2007, Steak 'n Shake changed a number of menu items. Chicken products are now prepared from thawed rather than frozen chicken. This change allows items to be cooked faster on a specialized grill. Salads also saw a number of changes including the introduction of a new salad blend and dressings.
[edit] Locations
Steak 'n Shake restaurants are currently located in Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Mississippi, Missouri, North Carolina, Oklahoma, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, West Virginia, and Wisconsin. According to the company's 2004 year-end report, it plans to open 26 new restaurants in fiscal year 2006. According to its 2006 1st-quarter reports, the company has opened 8 new restaurants, and closed 2, through the quarter.
[edit] Lawsuit Against Rising Sun, MD, Restaurant
In the small town of Rising Sun, Maryland, a small unaffiliated restaurant was named "Steak and Shake", but in 2004 Steak 'n Shake was granted an injunction forcing the Rising Sun restaurant to change its name, which was found to be similar enough to the corporate trademark. Subsequently, the Rising Sun restaurant changed its name to "Steak and," omitting the "Shake" to avoid further litigation.
