Steak 'N Shake Might Soon Declare Bankruptcy. Here's Why
Steak n' Shake has found its way into the pantheon of American restaurant greats for a good reason. According to Mentalfloss, the chain was ahead of its time when it adopted the open kitchen design, letting patrons take a look at what the chefs cooked up while also promoting their hamburgers as safe to eat. While this storied institution has revolutionized the way we eat, times have changed and Steak 'n Shake as we know it might vanish sooner than we think.
According to QSR, the restaurant chain now sits at the edge of bankruptcy as a result of losses sustained from COVID-19's impact on the food industry. The news seems especially precarious, considering that 62 Steak 'n Shake locations had temporarily shuttered by the end of March 2020 as a result of the pandemic. Bankruptcy concerns grew larger in 2021, with the chain hiring financial consultants and a law firm for financial advice, as well as potentially seeking out financial restructuring options.
Steak 'n Shake has faced financial disaster before. During the 2008 recession, the Biglari Holding group purchased the restaurant and found ways to make dining affordable, drawing in enough profits to prevent the impending insolvency of the company. Unless a miracle occurs, this current bankruptcy worry appears much direr if you love the brand.
Steak 'n Shake's financial woes aren't entirely new
The deadline to address the restaurant's financial situation is closer than you expect. According to Inside Indiana Business, the chain needs to repay a $153 million loan by sometime in March, and with little hope of refinancing, Steak 'n Shake might declare bankruptcy as early as this week. The financial forecasts within the business don't seem promising either. According to QSR, the chain pulled in a 2020 third-quarter profit almost fifty percent lower than the year before, with Steak 'n Shake having lost about half of its total revenue over the course of 2020. Even before the pandemic, the restaurant started to lose franchised locations and entered COVID-19 in a somewhat precarious financial position.
If you love this iconic burger joint, make sure to show your love while you can. With the potential of the chain going under very shortly, you need to enjoy all of their signature burgers and shakes for as long as you can. After this week who knows what the future holds for Steak 'n Shake? And if you can't eat without them, make sure to get a move on and enjoy their offerings ASAP.