Steak ’n Shake has a long history as a sit-down burger and shake destination, with roots going back to 1934. In recent years, CEO Sardar Biglari has attempted to pivot the brand into a leaner, counter-service model with $10,000 franchise buy-ins — a radical departure from the traditional franchise approach. The strategy was meant to revitalize growth and attract new operators.
The supportive case is that the low-cost franchise entry model has kept units alive and allowed new ownership groups to enter at a fraction of the traditional startup costs. The brand name still carries recognition in particular Midwest and Southern markets, and its signature steakburgers and shakes maintain nostalgic appeal. For budget-conscious entrepreneurs, the $10K “franchise partner” model looks like a low-barrier path into restaurant ownership.
But cracks are noticeable.
The new model strips operators of equity and requires profit-sharing with corporate, making it less attractive for serious multi-unit investors. Service and consistency have suffered during the transition, leading to negative customer sentiment and ongoing closures. Competitors in the better-burger and QSR segments (Five Guys, Freddy’s, Culver’s) have captured much of the growth Steak ’n Shake once enjoyed. Without meaningful investment in brand modernization and franchisee alignment, the decline is likely to continue.
Steak ’n Shake sits at a crossroads: still recognizable, but weighed down by strategic missteps and operator dissatisfaction.
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