---
title: "Steak ‘n Shake Temporarily Shutters Over 100 Stores in Refranchising Plans"
url: https://burnaze.com/article/563a4dc0-f4a7-4e30-adf6-f1a56cd1c37f
source: "1851 Franchise"
original_url: https://1851franchise.com/steak-n-shake-temporarily-shutters-over-100-stores-in-refranchising-plans-2710654
category: "Restaurants"
industry: "Restaurants"
published: 2019-08-06T16:11:52.000Z
modified: 2026-11-01T02:32:23.343Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/4aaaa417865b6f69fad40baf5f3c123a1038.jpg
---

# Steak ‘n Shake Temporarily Shutters Over 100 Stores in Refranchising Plans

**TL;DR:** Steak 'n Shake temporarily shut down over 100 stores as part of refranchising plans to maintain quality standards. The brand aims to refranchise all 413 corporate-owned stores, offering franchise ownership for $10,000 with a 15% sales lease and 50/50 profit split.

*originally published in 1851 Franchise on 2019-08-06. [Read the original](https://1851franchise.com/steak-n-shake-temporarily-shutters-over-100-stores-in-refranchising-plans-2710654).*

## Story

In August 2018, Steak ‘n Shake announced plans to temporarily close and refranchise all 413 of their corporate-owned stores according to a report in QSR Magazine. Following Chick-fil-A’s model of single-unit, operator-run stores, the brand was offering franchise ownership for only $10,000 with a 15% sales lease and 50/50 profit split. The parent company Biglari Holdings has attributed recent decreases in net sales to these temporary store closures, but the brand is also lagging in both same-store sales and comps.

According to Steak ‘n Shake CEO Sardar Biglari, the brand is trying to avoid absentee owners in order to maintain quality standards across the board. “We limit a franchisee to a single location, based on the belief that focus, along with passion, determination, and persistence, will translate into excellent employee and customer satisfaction,” said Biglari. As of June 30, 213 of the brand’s stores are franchised while 307 are company run. The number of temporarily closed company-owned stores has risen to 103. Read the full story here.

## Entities

- 1851 Franchise (publication)
- Restaurants (sector)
- franchise ownership (topic)
- Chick-fil-A (company)
- refranchising (topic)
- store closures (topic)
- Steak 'n Shake (company)
- Sardar Biglari (person)
- Biglari Holdings (company)
- quality standards (topic)

---
Originally reported by 1851 Franchise (https://1851franchise.com/steak-n-shake-temporarily-shutters-over-100-stores-in-refranchising-plans-2710654). Summarized by Burnaze (https://burnaze.com/article/563a4dc0-f4a7-4e30-adf6-f1a56cd1c37f).