Hempfield Steak ‘n Shake joins list of ‘temporarily closed’ locations

Over 100 Steak ‘n Shake restaurants across the country — including at least six in the Pittsburgh region — sit empty as the burger chain moves toward a franchise-based business model.

The Hempfield location most recently joined Steak ‘n Shake locations in Frazer, Robinson and Center Township, while locations in Munhall and Pleasant Hills shuttered in April.

A sign posted on the doors at the Route 30 restaurant read: “We have decided to close this Steak ‘n Shake location, which is being designated a Franchise Partner. We will be renovating by installing new equipment to improve our speed and customer service. This location will reopen under new Franchise ownership.”

The sign encourages people to visit other locations, all of which are temporarily closed, according the Steak ‘n Shake website. There is no mention of an anticipated date for reopening.

The parking lot sat empty, posted signs about the closure curling on the drive-thru window and booths and tables stacked in a corner of the building. The Hempfield restaurant, located at Greengate Centre, is surrounded by other businesses, including Walmart, Chick-fil-A and Chili’s Grill and Bar.

Township officials did not have further information about the Greengate Centre location. Jon Knudsen, a director at Hanna Commercial Real Estate, which manages potential businesses for the site, said the owners still are paying rent, “but we don’t know what’s going on. It could be internal workings, but we do not have a timeline.”

Knudsen noted the Hempfield restaurant is managed by corporate offices. Officials from Steak ‘n Shake did not return calls for comment.

Frazer Township Supervisor Lori Ziencik says the township misses the Steak ‘n Shake, but officials don’t really have a say in what happens with the restaurant.

“That’s nothing we can control, what they decide to do corporately,” she said.

A sign posted on the building, which is located inside the Village at Pittsburgh Mills shopping center, says the company “decided to close this Steak ‘n Shake location, which is being designated for a Franchise Partner. We will be renovating by installing new equipment to improve our speed and customer service. This location will re-open under new Franchise ownership.”

A large banner hanging from the building lets people know the restaurant is up for franchise, and lists the link to the franchise website.

Ziencik said the township hasn’t reached out to Steak ‘n Shake regarding the closure.The restaurant has been closed since last year (2019), she said.

“We miss them, but it’s just the way of the world,” Ziencik said. “I hope they find a franchise owner.”

Spokespeople with Zamias Services Inc., which leases and manages the Village at Pittsburgh Mills, couldn’t immediately be reached for comment.

By September, about 106 out of 550 Steak ‘n Shake restaurants across the country were temporarily closed, according to a statement from San Antonio-based Biglari Holdings, the parent company of Steak ‘n Shake.

“The company is actively working to identify franchise partners for these stores,” the statement reads. “Although the company is committed to the franchise partnership model, future impairments are possible.”

Biglari made the move to franchise after a $10.6 million loss in revenues in 2018 despite netting more than $760 million. The company made other cost-cutting moves, including one that saved $1 million by no longer topping milkshakes with cherries, CBS News reported.

Franchisees can buy into the company for $10,000, with Biglari assessing fees of up to 15% of sales and 50% of profits, the company said.

Still, the move has not come without issues. Steak ‘n Shake was ordered to pay $7.7 million in damages by a federal judge in Missouri after a jury agreed the company did not pay 286 managers overtime, according to Restaurant Business. Over 40 Steak ‘n Shake locations have been temporarily closed in Missouri, USA Today reported.

Some restaurants that closed for franchising opportunities, like a location in Denver, never reopened, The Denver Post reported in December. The sign announcing the restaurant’s eventual reopening, instead, was changed to one announcing the building was for lease.