Steak 'N Shake Is Permanently Closing 51 Of Its Restaurants
Steak 'n Shake permanently closed 51 of its restaurants in the first quarter of 2020, in another example of the effect that the COVID-19 outbreak has had on the restaurant industry.
This news is according to a report from Biglari Holdings, which owns the chain, and it was previously reported on by Business Insider.
In the report, the company explains the impact the COVID-19 pandemic has had on business. The chain, like many others, closed its dining rooms on March 17 in keeping with social distancing measures.
"The COVID-19 pandemic had an adverse effect on our restaurant operations, thereby resulting in the evaluation of company-operated restaurants for recoverability," the report read.
In addition, the company said it expects further impacts to its business because of the coronavirus outbreak, but that its exact forthcoming effects are impossible to estimate at this time.
"The COVID-19 pandemic has adversely affected our operations and financial results," the report reads: "However, the COVID-19 pandemic could cause disruptions to our supply chain. Moreover, we cannot predict how the outbreak of COVID-19 will alter the future demand of our products."
Steak 'n Shake did not immediately respond to Delish's request for comment on the closures.
The chain had been facing financial troubles prior to the pandemic. In 2019, the chain closed 106 stores and was looking to cut costs via new methods of making milkshakes (and by cutting cherries). The chain was also ordered to pay $7.7 million in unpaid overtime last year.
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