Steak 'n Shake
 |
| Company type | Public (NYSE: SNS) |
|---|---|
| Industry | Food |
| Founded | 1934 |
| Headquarters |  Indianapolis, IN |
Key people | Gus Belt, Founder |
| Products | Fast food |
Number of employees | 7,667 (2007) [1] |
| Website | www.steaknshake.com |
Steak n Shake (also spelled Steak 'n Shake) is a combination 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. Many Steak n Shake restaurants are open 24 hours. Their slogan "Famous for Steakburgers" refers to their signature menu item, the Steakburger sandwich. 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.
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 was demolished in late 2005. 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. 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.
On The Menu
Steak n Shake is most widely known for their steakburgers. They are made with USDA Grade-A Beef and are formed into a hockey puck shape before cooking. Once on the grill, the burger sears on one side for a few seconds, then is flipped and flattened. After the burger is fully cooked on both sides, it is put on a toasted bun.
Milkshakes are popular at the restaurants also. The shakes are made with a low-butterfat icecream. High butter-fat ice cream can be substituted by request. Steak n Shake also features "Fruit n Frozen Yogurt" shakes. These are made with pieces of fruit, or fruit puree, and a low-fat yogurt.
"Chili and Spaghetti" is served here which is similar to Cincinnati Chili.
Steak n' Shake recently came out with a new and/or reformulated chicken product. Guests have a choice between Grilled, Spicy, or Breaded chicken. In the past, chicken was pre-cooked and the quality was poor. When Steak n' Shake rolled out their new chicken, they started the process of creating a chicken product that had a better taste. All chicken, excluding chicken fingers, is now raw when shipped to the store.
Soon after the new chicken product came out, all salads were reformulated, and one salad was created. These salads were promised to have better ingredients, and also have a better taste.
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.
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.