Two years and at least two advertising agencies after ending a long-term advertising deal, Steak n Shake is reviewing pitches
from agencies interested in its business, according to a report from industry publication Advertising Age.
The report, posted
on adage.com this week, cited unnamed executives familiar with the review. Officials at Steak n Shake, the Indianapolis-based
restaurant chain operating as a unit of Biglari Holdings Inc., did not return a call seeking comment.
Steak n Shake terminated an 18-year relationship with Indianapolis agency Young & Laramore in late 2008, after Texas
investor Sardar Biglari took control of the parent company. That November, it signed a $4 million contract with The Varnson
Group, a Georgia firm it fired less than three months later.
The two companies ended up in court
after Steak n Shake accused Varnson of holding onto proprietary material following the split, but the case was closed in April
2010 following the advertising agency’s Chapter 7 bankruptcy filing.
Florida-based The Zimmerman Agency stepped into the breach—and still includes some Steak n Shake television commercials
in its online portfolio—but Ad Age said no agency is working with the company now. A Zimmerman spokesman said
the agency had no comment.
Steak n Shake, which has about 490 restaurants, has been increasing its ad spending in recent years, Ad Age said,
citing statistics from WPP's Kantar Media. In 2009, the company spent $17 million, the publication said, up from $13.6
million in 2008 and $12.8 million in 2007.
In 2008, local industry experts pegged the Steak n Shake account as one of the top 10 in the state, estimating it generated
a mid- to high-seven-figure sum for Young & Laramore each year.
Y&L's Steak n Shake TV ads became almost as iconic as the restaurant itself. Spots featuring sharp-tongued servers
preparing hand-made hamburger patties and hand-dipped milkshakes won the ad agency myriad local and national awards.
CEO Paul Knapp said the local agency has not been invited to pursue the Steak n Shake account as part of the current review.
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Biglari has ruined a once great hamburger chain by cost cutting and pandering to the lowest common denominator.
It's current menu and advertising screams "ME TOO!" instead of the little differences (that Y&L exploited expertly) that used to make it a nice change of pace fast food establishment.
We live about a mile from the 116th street (Exit 5) and not only have I noticed it, but the doxie sitting on my laps has noticed it: you place your order, you turn the corner, and what do you see? Three large boards extolling different foods and quotes on them. What's wrong with this?
It's advertising AFTER you've placed your order.
Every time we place an order, it reminds me of "Dave" (Kevin Kline) where he's forcing his cabinet to cut money for a homeless shelter.
One his questions has to deal with a PR campaign which is intended to make people feel good about their cars - after they own them.
I wonder how helpful those boards would be if you were to post "Wednesday's Winning Lottery" numbers on Tuesday night. Except it was *last* Wednesday's numbers.
If this is all it takes to be an ad agency, sign me up. And I'll charge less.