Steak ’n Shake has made a recent move that’s reminiscent of the good-old days.
The current days apparently aren’t good enough to resurrect one of the beleaguered restaurant chain’s long-shuttered Peoria outlets.
A former Steak ’n Shake at 7715 N. University St. is among 15 that are being sold at auction. The locations are scattered among 10 states.
That announcement came the same week Steak ’n Shake revealed it was resuming drive-in carhop service at many of its locations, including most in central Illinois.
Keen-Summit Capital Partners is accepting bids until Aug. 31 on the 15 shuttered Steak ’n Shakes, with an auction date set for Sept. 4. Reserve price per property is $367,000.
The Peoria location is the only one in Illinois offered via this auction.
"Many of these locations are virtually turn-key, with much of the restaurant equipment available within the building," an auction prospectus stated.
The restaurant near University Street and Pioneer Parkway has been closed for the better part of two years. At the time of its closure, a sign on its door stated it was shuttered for reimaging.
Nick in the Morning wasn’t sure exactly what that meant. The chain’s signature steakburgers and milk shakes have been around since Gus Belt opened the first Steak ’n Shake, in 1934 in Normal.
A deeper meaning might be found in financial troubles for the restaurant and its parent company.
Bigliari Holdings Inc. has closed about 50 Steak ’n Shake outlets permanently and another 60 or so temporarily as it has struggled to refinance debt. Among the permanently closed sites is one at 5036 N. Big Hollow Road in Peoria.
The chain has about 500 restaurants worldwide.
According to the San Antonio Express-News, Steak ’n Shake lost $11 million last year on sales of almost $600 million. In 2016, the restaurants generated $35 million in operating income on sales of about $800 million.
Last year, a Chillicothe woman was co-plaintiff in a $3.75 million class-action lawsuit Steak ’n Shake settled regarding lack of overtime payments for store managers.
Bigliari has attempted to raise cash by offering to franchisees about 400 company-owned stores. Franchisees would pay $10,000 upfront, then split profits with Bigliari, among other stipulations.
At least one restaurant analyst believes all this might lead to a Steak ’n Shake bankruptcy filing. The coronavirus pandemic isn’t helping, either.
"I think invariably their unit count will drop — they’ll close more locations than they open over the next year (or) two years, restructure leases, and they could very well be facing a Chapter 11 bankruptcy," Chicago-based Aaron Allen told the Express-News.
"If that happens, they’ll shed debt and the brand will survive, but there will certainly be employees, franchisees, vendors and landlords left holding the bag."
In an attempt to stave off that possibility, Steak ’n Shake now will have its employees bring food-filled bags to your vehicle, if customers prefer.
Steak ’n Shake has revived drive-in service, which the chain abandoned in the 1980s. But there’s a modern-technology twist.
Customers can park at designated spaces at participating restaurants, then place orders through a mobile app. A carhop then is to deliver the food on a tray that can be attached to an open car window.
The option is to be available at Steak ’n Shake at 3229 N. University St. in Peoria, as well as others in East Peoria, Galesburg, Morton, Pekin and Peru.
Steak ’n Shake suggested the move indeed was nostalgic but also a response to COVID-19.
"Our modern version of the drive-in not only reinforces those early days with delivery right to your car," company executive Steve May said in a statement, "but it also fits perfectly into today’s reality, offering our guests a way to enjoy dining out of the house while still protecting their family’s health."
Whether carhops and other bells and whistles restore Steak ’n Shake to financial health is an open question. Or perhaps a closed one, at least in North Peoria.
The Link LonkAugust 06, 2020 at 08:32PM
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As Steak ’n Shake brings back carhops, a Peoria location hits the auction block - Peoria Journal Star
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