---
title: "Steak 'n Shake Struggles to Maintain Business After 46 Corporate Stores Closed"
url: https://burnaze.com/article/6b4dc268-d219-428d-9ed6-a51a7c0a12af
source: "1851 Franchise"
original_url: https://1851franchise.com/steak-n-shake-struggles-to-maintain-business-after-46-corporate-stores-closed-2709869
category: "Burger"
industry: "Restaurants"
segment: "Burger"
published: 2019-05-06T21:16:02.000Z
modified: 2026-11-01T01:44:12.930Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/7f5ee3ae6bd87c603a857c9461958822785.jpg
---

# Steak 'n Shake Struggles to Maintain Business After 46 Corporate Stores Closed

**TL;DR:** Steak 'n Shake closed 46 corporate stores amid a decline in sales and traffic. The company is attempting to sell these stores to franchisees as part of a refranchising initiative.

*originally published in 1851 Franchise on 2019-05-06. [Read the original](https://1851franchise.com/steak-n-shake-struggles-to-maintain-business-after-46-corporate-stores-closed-2709869).*

## Story

After a dismal first quarter, Steak ‘n Shake continued to close more corporate locations . The burger chain has seen a decrease in same-store sales and traffic fall throughout the beginning of 2019. This has led to the closing of 46 company-owned stores, 44 of which are 'temporarily' closed.

According to Restaurant Business, the stores have been closed in order to sell them to franchisees in a risky company-wide refranchising initiative . However, many see this as an unsuccessful business move since it is often more difficult to reopen closed locations.

“The closures represent more than 10% of Steak ‘n Shake’s 413 company-operated locations as of Dec. 31, and more than 7% of the chain’s 626 locations the chain operated at the end of the year, including 213 franchised units,” stated Restaurant Business.

Nevertheless, Biglari Holdings Chairman, Sardar Biglari said, “We expect the combination [of standardization and entrepreneurial spirit] to reinvent Steak ‘n Shake as the best quick-service restaurant company in the burger segment of the industry.”

While some remain hopeful, the numbers continue to speak for themselves. Sales have continued to fall over the past two years and operating costs have risen. It’s unclear how and when the refranchising efforts will begin and if they will benefit the company.

## Entities

- 1851 Franchise (publication)
- Restaurants (sector)
- Restaurant Business (publication)
- sales decline (topic)
- store closures (topic)
- Steak 'n Shake (company)
- company performance (topic)
- Sardar Biglari (person)
- refranchising initiative (topic)
- Biglari Holdings (company)

---
Originally reported by 1851 Franchise (https://1851franchise.com/steak-n-shake-struggles-to-maintain-business-after-46-corporate-stores-closed-2709869). Summarized by Burnaze (https://burnaze.com/article/6b4dc268-d219-428d-9ed6-a51a7c0a12af).