NEW YORK—The company now known as Biglari Holdings Inc. on Thursday unveiled a new prototype for future Steak n Shake restaurants.
The restaurants will feature a roofline that references the classic Steak n Shake folding hat, along with an open interior featuring a steakburger grill and milkshake stations that are more visible to customers.
CEO Sardar Biglari said the goal is to open about 1,500 new franchise locations in the United States in the coming years. He detailed the plans at the St. Regis Hotel in New York City shortly after shareholders approved a change to the company's name. About 95 percent of shareholders supported calling the restaurant chain's parent company Biglari Holdings instead of Steak n Shake Co.
The shares now are trading under a new ticker symbol, BH, in part to avoid confusion between the chain, Steak n Shake Operations Inc., and the parent, which owns a diverse pool of investments. Biglari quickly dispatched with the vote and confirmation of a new term for the company's five incumbent board members, then took questions from investors and analysts for more than five hours.
Biglari said he couldn't envision a scenario in which he would sell the Steak n Shake restaurant chain, which he described as a key strategic business for Biglari Holdings. He said the Steak n Shake division will maintain a high-profile presence in Indianapolis.
"We're not going to be selling that subsidiary no matter what we would get for it," he said.
He said the company already has inked deals for new franchise Steak n Shake locations in Denver; Las Vegas; Richmond, Va.; and Rome, Ga.; and leaders are working on plans for a series of new company-owned stores in San Antonio, where Biglari Holdings has its headquarters. The company plans to use the locations it opens in San Antonio to sell potential new franchisees.
The 3,200-square-foot prototype will cost about $1.5 million to build, down from the existing 4,200-square-foot model, which costs $2.2 million. The restaurants still will seat about 100 people. Dining areas will be visible from outside thanks to floor-to-ceiling glass, while lifesize classic photos showing Steak n Shake's history will adorn the rest of the structures.
With the old-format stores, about 60 percent of the square footage was in the back of the house, including a large office and an employee lounge with lockers. The new versions strip out those amenities.
Those in attendance at the annual meeting were shown renderings and an animation of the new prototype, but the company declined to provide IBJ a digital copy of the materials. The newspaper purchased a single share of the company to ensure access to the meeting.
One of those asking questions of Biglari was Matt Prescott of the Humane Society of the United States, which has bought shares in several public restaurant companies in an attempt to influence food practices.
Prescott called on Steak n Shake to use at least some cage-free eggs, pointing to several similar chains, including Burger King, IHOP, Panera Bread and Red Robin Gourmet Burgers, that have begun using cage-free eggs.
Biglari said he appreciates the concern but is no expert "because our breakfast business is so damn low."
"Ultimately the market will drive our decision, not a particular organization or individual," he said.
Steak n Shake shares closed Thursday at $402.05 each, up more than $9 for the day.
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http://www.youtube.com/watch?v=yGU3y8IdNBQ
I have been impressed with every single Steak N Shake I have attended.
And for those of you who are lamenting the shape of your Steak N Shake, it will likely improve soon. Biglari has a process of reviewing managers and district managers, etc. When he interviews them, he thinks to himself, "Is this the person I'd trust all my money to?" And if the answer is no, then that's it. So based on what he was saying, expect a lot of change.
You shouldn't knock the importance of the prototype. It will revolutionize the eating experience at a location. It is so obvious that the prototype clearly was planned out with so many things in mind - the customer, maximizing how efficiency, and saving money.
Biglari is ALL about the customer.
Name one other fast food chain that would make fresh Guacamole on site. Biglari said "Sure we could have had guacamole mix sent to all the stores. But instead we chose fresh avacados, tomatoes, and cilantro..."
People knock Biglari and they don't have a clue what he is really like. He is so passionate about what he does. He is so dedicated to the customer. He loves what he does. And he is ridiculously good at it.
This was a good article, thank you for writing it.
But as for most of the comments, trust me, if you were there at the meeting - where Biglari spent almost 5 straight hours answering every single question he was asked - you'd see him in an ENTIRELY different light.
He has a pretty good sense of humor too.
BIGLARI RULES!!!!
When in line to hit the window, it reminded me of "Dave" when the Prez is trying to trim the budget with a chainsaw. There's a figure named which had a purpose of "making people feel good about the cars they've already purchased".
As I approach the window, there are three large signboards, extolling the virtues of the food you're in line to pick it up. Do I care what Roger Ebert said about taking the president out for dinner and routing the troop to S&S.
Granted, the placards might seem well-placed - in an effort to use feng shui - and putting that information is a distraction so people aren't reading them to see if there's anything new, ...
WNN
_______________
[1]Whomever wrote the S&S code to find sites within a given address needs to meet someone out back, grab a switch, and hurt them until ___ hurts.
If I were to produce that type of quality, I'd be out of business. I wouldn't do it for my self, and certainly not for my clients.
Also, I don't feel that Biglar bought the chain to save it, he bought it as a way to grow his other businesses, now he is putting on the show of trying to save it, but in the end, it will go the way of the dodo. First he begins taking what money is left in the chain and uses it to further his interests (that are not Steak n Shake related), then he changes the name, so it doesn't look like the real plan is to suck the chain dry. Now he is changing the whole look and feel. It wont be long and the chain will be where it was headed anyway, so I guess I should just shut up and mourn the loss of a local chain.