Two Steak ’n Shake locations in the region are temporarily closed as the parent company of the chain transitions to a franchise-based business model.
There was no time frame given for when the Pleasant Hills and Munhall locations would re-open.
The company temporarily shuttered its corporate-owned restaurants until they are transitioned to franchisees. A Steak ’n Shake spokesman was unavailable for comment Thursday.
Other locations in the region, including the restaurants in Frazer and Hempfield, aren’t affected by the transition to franchise ownership.
The move was announced to shareholders of Steak ’n Shake’s parent company, San Antonio, Texas-based Biglari Holdings in a Feb. 22 letter from Sardar Biglari, its chairman.
“We must be ardent not only about the quality of the product also the quality of the people who operate Steak ’n Shake restaurants. To achieve our goal, we are building a culture of ownership at the unit level,” Biglari wrote. “For operators to think and act like owners, we believe they must be owners.”
Steak ’n Shake’s franchise fees are $10,000, according to Biglari, and the company assesses a fee of up to 15% of sales and 50% of profits.
The move was made to recoup declining revenues that included a $10.6 million loss in 2018 despite net revenue of more than $760 million.
The chain had 413 company-owned stores in 2018 and 213 franchise locations, according to the letter.
