Hempfield Steak 'n Shake items go up for auction

Megan Tomasic, Tribune-Review, Greensburg, Pa.
·3 min read

Oct. 11—Burgers and shakes are off the menu at the former Steak 'n Shake in Hempfield, as it is being emptied to make way for a new business.

An auction is scheduled Monday at the Greengate Centre restaurant known for its black, white and red 1950s decor and kitschy vibe. Mark Ferry Auctioneers will sell kitchen appliances, booths, dinnerware and other items.

"I've been getting a lot of phone calls, a lot of inquiries," Ferry said.

The auction comes two years after the Hempfield restaurant closed its doors when it became one of more than 100 Steak 'n Shake locations — including those in Center Township, Frazer, Munhall, Pleasant Hills and Robinson — to temporarily shutter as the burger chain moved toward a franchise-based model.

The shift, which began in 2018, was an attempt by Biglari Holdings — the San Antonio-based parent company to Steak 'n Shake — to recoup declining revenues, including a $10.6 million loss in 2018 despite net revenue of more than $760 million. The change was announced in a February 2019 letter to investors.

"We must be ardent not only about the quality of the product but also the quality of the people who operate Steak 'n Shake restaurants," the company's chairman, Sardar Biglari, wrote. "To achieve our goal, we are building a culture of ownership at the unit level. For operators to think and act like owners, we believe they must be owners."

At that point, there were 626 Steak 'n Shake restaurants, 413 of which were company-operated.

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Related:

—Hempfield Steak 'n Shake joins list of 'temporarily closed' locations

—2 Steak 'n Shakes temporarily closed in Pittsburgh area

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Struggles continued through 2019, when Steak 'n Shake reported a net operating loss of $15.4 million.

The next year, Biglari announced that officials paid off $152.5 million in debt that had been accrued by Steak 'n Shake. By year's end, 159 restaurants were converted into franchise partnerships, with a total of 536 Steak 'n Shake locations.

The Hempfield location was expected to resume operations under franchise ownership while undergoing a renovation, but it never did. Operators continued to pay rent, said Jon Knudsen, a director for Hanna Commercial Real Estate, which manages potential businesses for Greengate Centre.

"There's a difference between the location being closed and the tenant still paying rent and the landlord not having ability to release it," Knudsen said. "So that was certainly the situation there where operations ceased but the tenant remained current on rent."

Biglari Holdings did not return a phone call seeking comment.

Knudsen said a new tenant is lined up for the space, but he would not release additional details.

Monday's auction will begin at 10 a.m. at the restaurant at 500 Greengate Centre Circle. More information can be found at markferryauctioneers.com.

According to the Steak 'n Shake website, there are no restaurants remaining in the Pittsburgh area. The closest are in Ohio near Youngstown and St. Clairsville.

Megan Tomasic is a Tribune-Review staff writer. You can contact Megan by email at mtomasic@triblive.com or via Twitter .