The burger chain has struggled financially over the last few years, and the coronavirus-stricken economy hasn't helped.
Following the news of Sweet Tomatoes shuttering its doors permanently, another restaurant chain is falling through the cracks due to the coronavirus pandemic. Steak n' Shake has announced that it will permanently close 51 of its locations across the country due to financial issues, according to a recent quarterly report from Biglari Holdings, its parent company.
In the report, Biglari Holdings said:
"The COVID-19 pandemic had an adverse effect on our restaurant operations, thereby resulting in the evaluation of company operated restaurants for recoverability. Consequently, the Company recorded impairment charges of $10,300 for the first quarter of 2020 because of the decision to permanently close 51 Steak n Shake restaurants as well as the expected impact of the COVID19 pandemic on the future operating performance of other company-operated restaurants."
In 2019, the chain reported a $26-million decrease in sales year-over-year, then decided to "temporarily" close more than 100 locations in November, says Business Insider. So things have been difficult for a while, and this coronavirus-stricken economy hasn't made things any easier.
No word on which Steak n' Shake locations will close.
Are you a fan of Steak n' Shake? How do you feel about all of these chain restaurants closing due to the pandemic? Share your thoughts in the comments below.