Just an update on the new Shake making process. It’s much much slower. It’s a soft serve machine that was poorly designed. We had the machine for two weeks and the syrup stopped working on one side and the other side stopped freezing the soft serve. It also automatically pours based on weight instead of just using a pull handle. It basically pours a random amount of soft serve overflowing most of the time. The station itself use to have 32 tins to work with keep in mind we have over 60 flavors of shakes. They reduced tin space to 5 tin holders and added a tiny little sprayer that takes forever to clean the tins out. There is also no space to place any Shake glasses and the whole set up is cluttered and frustrating. The old set up I could make about 40 shakes in 20 minutes with the new process it take the same amount of time to make 12 shakes. The only problem with the old Shake making process was the freezer temperature being too cold and freezing the shake base making it impossible to scoop. It should be at 15 degrees and it was always at -10 degrees. They have a loan on these Shake machines for $50,000 each and they cannot make the payments on them. If you franchised one of these you yourself would only make $1500 per week if you had an extremely busy restaurant. Not worth it in my opinion
Franchise City yeah I’ve seen the weekly profits and it’s always between $3,000 and $4,000 so if you get 50% of that. It’s not worth the time investment. They are trying to get rid of servers and turn it into a Culver’s style service as well.
Damn i work at a sns here in Ohio And from what I've heard they've been saying they were gonna get a new shake machine for ages. I only work 6hrs a week doing prep, but I hope they never get the new kind of machine now that I read this. They just remodeled our front end, but we can't keep a staff so I don't see thr dining room opening until we can handle it
I am a former GM for this company, this whole Franchise Partner program is a pipe dream for people new to the organization. Experienced/talented GM’s, assuming they haven’t quit because of how poor the company is doing, can barely pull this off. The standards Sardar expects are outrageous, 6-8 months to turn a troubled store around to “gold standard” is going to be nearly impossible for someone brand new. That person will likely be walking into a understaffed restaurant, with underpaid staff and they will be almost certainly working 24/7 to keep the restaurant open. I left the organization from burn out of being in the industry. Could I have got to the Franchise Partner level? Certainly, but after 12 years with the company, the extra effort was not something I wanted to do. I am a computer programming now... that’s how burned out I was.
Smart man! I’m trying to become a programmer myself but was intrigued by the title of this video. Your comment definitely turned me off to the idea of franchising haha
I always tell people it's best to hear the truth no matter how uncomfortable. My husband and I have income we are looking to invest into a franchise. He wanted steak and shake, I didn't. This was a godsend that I found this video.
I like how he was able to tell you whether the deal is really worth it. Many people will look at this from an emotional point of view and fail miserably.
Excellent analysis. What you said is not negative. Its the facts of the situation and its really awesome that you shared the full background story for those that might invest.
iHave NoName no he’s a fucking hater. He’s talking badly about the franchise because he’s already successful and it’s not gonna meet his financial expectations so I he’s speaking from his position. 🖕🏾
one brady dude you sound like a fool. The man is giving you facts! Go look it up. Everything he presented is what it is. Steak and Shake is having some big drawbacks and luring possible suckers like you (since you think there’s hating going on) into a trap.
I used to work at the one in my area and we had pretty good reviews. My customers were for the most part always happy and if not I did what I could to make the customer happy. The problem is the whole 24 hour gig. If they were open until 1-2am then that would be so much better. The menu is also pretty expansive and if they would just cut it down to 3 or 4 signature burgers, a chicken fingers meal, their shakes and some form of 4 or 5 dollar meal box (pretty much every other fast food franchise has one) then I could see them being able to survive.
I read in the franchise contract, they can cancel your yearly renewal contract any year. So that means if the restaurant is doing well, they cut you out!??? Who in there hell would sign a contract like that? 😕
I live in Indy, where S&S is based, and a friend use to work in the executive suite for that company.. When BigLiar took over, clandestinely, it all went to s**t.. This new franchise model is a last ditch effort to save a sinking ship.. This is not an opportunity worth anyone's time.. Accurate review, Robert!
Stores in fort Wayne and Warsaw were rumored to have closed over health violations.. they have franchise banners on the building but no occupancy... use to love steak n shake.. it's now garbage service sucks and I'm not eating at any of the due to the health issues
Steak N Shake burgers, when made by an employee who cares, are pretty fing delicious. Now the biggest problem I have with sns is the horrible customer service. Food takes ages to come out, unprofessional waiters, and little quality control.
I stopped in one of the closed locations earlier this week (Englewood, OH). I noted the following: 1) Although the store is closed, ALL of the signage is still out as if it were opened. Imagine how many potential customers will be ticked off after leaving the interstate looking for the restaurant. 2) These locations are shuttered. Any franchisee will have to hire a completely new staff and try to get them up to speed with extensive training. From past experience in the food service industry, that is a serious commitment. 3) The fact that the restaurant must be open for 24 hours a day would be a serious impediment to me. First, there are very few locations where that would be financially feasible (i.e., near an interstate, etc. Second, your store is a criminal's ATM as you will have more cash than convenience stores.
So basically I’m going to pay 💰 $10,000 to work a year for free , pay my travel expenses, pay for the upgrades to the store and I don’t own anything after all that? Good looking out franchise city!
When I read the contract and saw they can basically fire you, even the restaurant is doing well? So if I turn the restaurant around with my blood, sweat and tears and it starts making millions, you can let me go by giving me a 45 day notice??!! 🤣🤣🤣🤣 Only someone desperate (and frankly stupid) would do this.
I have always wanted to buy into this franchise. I am so glad that I came and watched this channel. I would have been so upset if I would have quit my job for THIS, NO THANKS!!
rex harrison wrong Steak ‘n Shake is the plug your just paying money to get a certain type of work that you can sell and make money for yourself and the plug. .. if you understand my terminology your paying 10000 to make 100000
You are the best. These Vlogs are so informative and very, very eye opening. What are the chances of anyone understanding every minute detail of a contract that could really trip you up, unless you are a Lawyer specializing. Crazy! Going on emotion can certainly ruin your life.
So if a franchise is turned around and starts making large profit then the sTAKE & Shank can opt out of the contract at any time and take full ownership as long as they give you up to a six week notice? I'd rather make a deal with the MOB and all I had to do to get away from the MOB is torch the place and walk away with the insurance money.
It's so easy to be overly optimistic when starting your new business. I got into vending machines. The new technology is really nice and I assumed people would go for the healthier options. Boy was i wrong. People (mostly kids) want the same things they are used to: candy bars, doritos, mountain dew. Sometimes the kids will hit the machine if something gets hung up. You had to order new stock, write off expired stock, go to the various locations and restock things. It got out of control. The hardest part was finding a good location. Those usually were already taken by the pros, selling their garbage. The company i bought the machines from went bankrupt. It seems like a few companies started to compete in making new vending machines and not everybody was a winner. The company that made the machines came out the big winner. Now i'm into digital marketing and selling shovels to miners instead of ming for gold myself. No risk or overhead. I just offer my services. I don't have to be a salesman i just tell them what i can do for them.
When you go to Steak & Shake you know what you are getting going in, you are getting a $4 double Steak Burger and fries. As fas as customer service goes that comes down to management not training employees. We have a Freddies in my town that is packed all the time and it cost about twice as much to eat there as it does S&S, I believe if there was a S&S in my town it would be packed 7 days a week. But they don't want to build new restaurants they want you to run already failing locations that are probably in bad areas that have a ton of other competition.
You were right. They are shutting s&s down left and right ! I would not even waste my money. I have a class mate who became a franchisee of s&s this year and she is not making a dime. They say it’s because some standards have not been met quite yet but I think it’s an excuse for them to not get paid
I'm so glad I found this channel. I truly appreciate the pros and cons of each franchise analysis. I don't think they're negative at all, but just very useful information.
No way. They wanted to share their wealth but without sharing. The problem is the CEO And looks like there is lack of leadership. Great 👍 informative video. Thank you 🙏
S&S nor ChikFila are true franchises, the "franchise fee" is to be a glorified manager. If you pass away, the business reverts back to corporate ownership, it CANNOT be left as an asset to your heirs. This is pure tomfoolery.. Not for a actual businessowner who'd want to purchase multiple locations and manage the business as a pure owner. Corporate requires you to slave away AT THE LOCATION like an EMPLOYEE. A true business owner KNOWS the system but experiences revenue PASSIVELY. Dont fall for the banana in the tailpipe guys, take that 10k and start your own business. ✌🏽💯
Informative video. If you're new to self-employment, then franchising could be overwhelming. If you have experienced the learning curve of successfully starting a business, then you'll be able to do this. Most people want maximum return for minimum effort and business simply doesn't work that way.
Wow!!! I just want to say this video is phenomenal! So much valuable information. After watching this video you have inspired me to take my $10,000 and go start my own business. I have to subscribe today!!!. THANK YOU!!!🤲🏾
When you said they lost that lawsuit because they didn’t pay their management I was out . As a company you don’t even have a servants heart to take care of your employees✌🏾
Thank you for opening people's eyes. As a cpa I do see some of the worse cases after the fact. So your service here is so valuable. Thank you for your time
I walked in a Steak and Shake recently. No employees. Screens to order at. Took forever to get food. Wont go back. You have removed the human element, the service, and as a result, you have lost a customer.
I've been watching you a few years< I am NOT a business owner, but I always learn a lot from you. You are a highly competent and effective presenter. Salute
franchise city is not a negative channel at all! FC is a realistic channel! hey Franchise City, love your work and wondering if you guys can do a video for what seems to be trending on FB these days and that's selling stuff on Amazon. I've seen about a few dozen videos from different ppl doing "workshops" on teaching ppl how to do it and i just think there is more to it than what they advertise. They say you can make over 300K a year selling stuff on Amazon, some claiming they make 800-900K a year and they wanna teach the "secrets". Call me greedy, selfish or just a bad person overall but if I knew of an untapped business that's making me 300K a yr, the last thing I'd do is share my method with millions of ppl. I mean, why invite competition? plz do a video on this type of business. thanks
I read the fine print, they can terminate the contract after a year if the restaurant is making money and they no longer need you!?!!! Who would sign something like that??
Steak ‘n Shake was my first job. I worked there from 07 to 10’. Let me tell you back then at least at my store, they took customer service very seriously. I was a waitress and if you ever got even one call to corporate you were at risk of getting fired. Now the last three years the location that I used to work at and all local locations to me went to hell. The managers didn’t care. The staff was all kids who were rude, and too busy on their phones or talking with friends to do their jobs. I was amazed at the difference. Not to mention there supposed to be 24 hours and the last several years 1/2 of the time at night they would be closed down cause they “ got a truck in”. Give me a break. When I worked there we never closed except every 3 months for 1 night for cleaning the hoods. It truly was a hard job and it was awful. I’ll never forget having to make 50 shakes by myself at night and wait on everyone alone. Just myself and a drive through person who was also the cook. Such a horrible experience. They should just close down permanently. Their reputation is ruined and it’s their own fault
This restaurant has really good food. I don't understand the low ratings😔 hopefully they get it together. Every company has problems. 🍀 Wish them the best!
This was very helpful, thank you! I saw their franchise ad and considered it, but thought "Are they desperate for money?" Well, according to what the CEO makes, it's a "No thank you" for me. The greed in this world is beyond belief. I'm not going to play your Captain Save-a-ho manager to help you make millions while I scram to fix your milkshake machine and slip and slide on grease 50+ hours a week and not see a dime until 1 year. FOH.
Former GM for SnS here. I’d be very wary of any dealings with Biglari. A couple of examples to get a feel for his business practices. In a phone conference on the last day of the quarter he changed the standards for bonuses retroactively for the whole quarter. Not just an extension of goals, but a completely new set of standards. Stated reason was too many GMs would get the bonus. Another conference call said that there would no longer be pay increases for managers or staff. Any staff making over minimum wage would have their pay cut to minimum wage. This was said to be due to financial troubles. Within a couple weeks Biglari quadrupled his salary.
Their business model makes it difficult to be successful. People are used to how fast they can get food at places like McDonald’s. The sns setup means it is going to take a lot longer to prepare food. The one near my house has a very slow drive thru and so commonly gets your order wrong I just quit using it. Chik fil a does have good service but they have been very smart with their menu. They are able to prepare this food much quicker and more consistently than sns
They expect to serve more people with less servers and less cash registers and all they are doing is losing more customers and managers are not listening
And as far as I am concerned managers are in a salary which means they are expected to work more hours with no time and a half. They want time and a half then go hourly.
people not knowing negatives is worse for them and many do not see it so showing and explaining it is actually 10x better than giving them false hope of making billions on something they will not make much at. you provide a service telling people truth good and bad of it anyone who listens can see that and those that do not see it well they are tuned into one side more than the other and need to be able to see both aspects. Thanks for sharing the wisdom.
If it sounds too good to be true it is! You build it they will take it.. Doesn't sound like a "franchise" sounds like a scheme to benefit the CEO and not those on the ground putting in sweat equity and their livelihoods both financial and personal. Thanks for the info
Well I see the parallels but there are some instances where guys do well doing that. That compared to steak and shiet food is 95cpm in dry van 1,000 miles and 1,200 in fixed cost
I wouldn't want to get onto the restaurant business but our family does like going there. It's actually a really good deal. For about the same price as taking the family to McDonald's we get waaaaay better quality and sit down service.
Thank you so much for posting this. A friend of mine and I were discussing the idea of a Steak-N-Shake franchise just the other day. Typical corporate dickheads trying to figure out how to put their hand in your pocket.
I mean any person with common sense would say “own a franchise for only 10k?-30k?” Sounds cheap / anyone would have one ☝️. Always a catch . So glad I listened and learned. Knowledge is power . Great teacher you are .
Anyone that didn’t already assume all this has no business running a restaurant anyway. If they were doing great they wouldn’t be handing over the keys to a million dollar restaurant for 10k. Only a very experienced restaurant leader that is capable of turning a business around and putting in the work can pull this off. Also like he said, it would still be very tough because I’d almost guarantee the Steak ‘n Shake corporate is not going to be very supportive in doing what it takes financially to upgrade the atmosphere and equipment of a run down restaurant.
This is the reason that makes me not to get into any business or buy a fanchise before going through Franchise city!. Always love your videos and the honest reviews!. As a research scientist and detailed and analysis oriented, I would say your analysis is really amazing!. Once I am financially ready I will get in touch!
That was good and thorough. There's much more to consider, but the fundamentals are everything. Too many 1st (and 2nd) timers believe they are going to be the outliers and this dispels a lot of the dreaming without being pessimistic. Some would be amazed at the amount of work to run a simple hot dog stand. Thus, the lure of franchises with established brands, procedures and success formulas that the average new business owner would not think of right away. Many states have laws requiring the franchisor to submit its franchise agreement (circular) for the record, because so, so many people have lost money or didn't understand the agreement. I can go on for days, but I'll just say that this is a very insightful video that can help a lot of people. Read those Franchise Agreements! Good post Sir.
I was at the St Josephs, MI, location in 2013 and it was the best drive-thru I have seen in years. the food was excellent and the shakes, too. it was made to order. I went from east coast to west coast and they don't have them on either...but Michigan rules on steaks and shakes.
24 hours? That would make absolutely 0 sense. No one except for stoners and drunk people are going to come in and get burgers and fries in the middle of the night.
This is going to become a popular business model for franchises in the future. It's working for Chick fil A and amazon is using this concept for delivery companies.
I agree - if it is done correctly it can be a low investment opportunity that allows new entrepreneurs with minimal capital to get into their own business.
@@FranchiseCityOnline I don't agree with "get into their own business" I think it offers an opportunity to buy into a good paying job for someone willing to work really hard and does not have the capital to own their own business. It can be a good opportunity for someone to get their feet wet before diving into a franchise with no experience.
Thanks for educating me. I live in St Louis and I've been seeing a lot of for sell signs and ads of all sorts on this and I knew it sounded too good to be true.
This was so good and informative!! I live in St. Louis where they have a bunch of these available for franchise. They closed all but about 2 and I see now why. SMH I was actually considering this. Thanks
Agreed 🧐! The 10k 🍞 is the easiest part in all of this. But that changing policy whenever they want & not having another business 🤔 Learned long ago not to put all my eggs 🥚 in one basket 🧺.
Pra Autoss right...they can still “let you go” & here in Colorado to have a building & not have the equity is really playing yourself....plus in a over all thing the business isn’t doing so well....it’s kinda hard to see the appeal in this really
I highly recommend to go into a SNS and work there as an employee and observe what’s going on for several weeks/month to see if it’s worth $10k into something your not certain about and if don’t work out you can quit and still have your $10k. Pay of the cash flow coming in and what’s going out on bills and supplies.
jlawrence01 I’ve never eaten at stake and shake and honestly I don’t think many people knew that.....I’m about to go look if this is true I’m about to make stake and shake my new fast food place
Sounds like a corporate nightmare. I used to work at Chilis. Horrible place to work. Same corporate greed passed down to employees. Then passed down to customers. Creating a very hostile environment for everyone.
You didn't win it , you were owed it , plus interest in my opinion, plus a cut of the profits that your money help fuel as they moved toward business success... :-)
Yeah, they just closed two in my area too, but it was for failing their health inspections. They were not washing food surfaces and their walk in refrigerators were barely below room temperature. S&S are nasty af.
My uncle was a owner of a steak and shake and it was terrible he didn’t make much money and worked mad hours he had to close it because his partner backed out. I told him before hand it takes a fast food place a long time to make money....
I love steak and shake food. I bet I could get a store profit. If I had money I would definitely do this. I ran a Checkers in Florida I was up 18% in sales and the corporate was down 7%.
Great information!!!!!....I’m sure steak and shake is probably pissed that he unleashed all this information as thoroughly as he did 🙌🏽...hey you can’t be mad at the truth ..
I hope they don’t screw up the shakes!! They can lose the cherries and save a mil but how much have they saved NOT filling the cup on all the shakes I’ve bought over the years?!
In general, I like the Franchise City videos and find the insights to be very helpful. This one is no exception. Although it doesn't come out and say Steak 'n Shake should be avoided, it clearly gives the viewer the impression that this could be a very unwise and costly investment. What confuses me however, is if Steak 'n Shake is so bad, then why does Franchise City highlight it as one of the "Examples of Franchises We Represent" in its on online brochure which can be downloaded from its website (see page 11 of 19)?
Thanks for the question! We don't vet the franchises on our website. Any franchise can be listed. We would hope that anyone looking for a franchise contact us to receive our free reports and insider views, but they are under no obligation to do so.. Also, the Steak n Shake opportunity on our website is not the $10,000 offer, it is the original full restaurant option which was an investment of over 1 million.
That Guy Nate Showed one in Ohio that was abandoned that had a banner saying franchise this location for $10k. but I bet that's not including probably $5k a month for the lease plus all the other overhead and having to order all the food their distributor vs Gordons Food Service that's way cheaper.
Just a update on my recent trip to a stake and shake in Nashville Tennessee, apparently they have got rid of all the waiters in a attempt to save money on that part, the store is now a self Serve keos, (no one to take orders in person) and they now call out your number of your order and you come pick up. A lot of this is most likely due to post COVID situation, but I feel like it’s for the best , it cuts down on floor traffic and saves the company money on employment,
We called him BigLiar. He made sweeping changes by importing cheap Canadian beef . He cheapened the brand, and lost loyal customers. He demoted some of the best managers. He closed the commissary in 2010 for a 3 year deal with Sysco (Sygma). Once the sweet deal was up, he had no bargaining chip to keep foodservice costs down. When the commissary was in operation, if an outside foodservice company tried to raise their prices, we would just say no, we'll just deliver it with our own trucks and drivers. You should have given a little more background on Bigliar, that alone would keep people from wasting their money. His wealth comes from his daddy, and his daddy's wealth came from US taxpayers. His daddy was a general in the Iranian army that defected. He was actually given a bs job. I can't remember the title, but he was paid to go from store to store which required a security detail since there was still a bounty on his head. I doubt driving around the midwest in brand new Mercedes with 6-8 secret service types was cheap. Bigliar is probably one of the most arrogant people that I've ever had to listen to. He would do conference calls, he would never come to the commissary and lie to us face to face. When he was called a Wannabe Buffett, he thought they were comparing him to Warren.
Having experienced managers may or may not be good. I have known a few and while some are very diligent others are lazy, have a bad attitude, use the waitresses as their own "flower "garden" in short are walking business disasters. My wife and I love steak N shake food but rarely go there due to horrible service and they do not have a clean feel. A new candidate may do better if they are diligent and ethical but it would be a high hill to climb. Very risky.
I think they need to change to a fast food format, maybe like a Culvers. When you see $4 combos served on real plates with real silverware you cannot help but wonder where they are cutting costs.
Just an update on the new Shake making process. It’s much much slower. It’s a soft serve machine that was poorly designed. We had the machine for two weeks and the syrup stopped working on one side and the other side stopped freezing the soft serve. It also automatically pours based on weight instead of just using a pull handle. It basically pours a random amount of soft serve overflowing most of the time. The station itself use to have 32 tins to work with keep in mind we have over 60 flavors of shakes. They reduced tin space to 5 tin holders and added a tiny little sprayer that takes forever to clean the tins out. There is also no space to place any Shake glasses and the whole set up is cluttered and frustrating. The old set up I could make about 40 shakes in 20 minutes with the new process it take the same amount of time to make 12 shakes. The only problem with the old Shake making process was the freezer temperature being too cold and freezing the shake base making it impossible to scoop. It should be at 15 degrees and it was always at -10 degrees. They have a loan on these Shake machines for $50,000 each and they cannot make the payments on them. If you franchised one of these you yourself would only make $1500 per week if you had an extremely busy restaurant. Not worth it in my opinion
Wow - amazing info thanks very much for leaving the comment!
Franchise City yeah I’ve seen the weekly profits and it’s always between $3,000 and $4,000 so if you get 50% of that. It’s not worth the time investment. They are trying to get rid of servers and turn it into a Culver’s style service as well.
wow the need a huge revamp of style equipment and some of everything wow that bad Im shocked one of my fav places sad to hear they doomed
@@sassyd8738 what ?
Damn i work at a sns here in Ohio And from what I've heard they've been saying they were gonna get a new shake machine for ages. I only work 6hrs a week doing prep, but I hope they never get the new kind of machine now that I read this.
They just remodeled our front end, but we can't keep a staff so I don't see thr dining room opening until we can handle it
I APPRECIATE YOUR EFFORT TIIMFUNDS YOU’VE BEEN THERE THROUGH DIFFICULT TIMES
This is the only credible franchise channel. Love the work💪🏼
Thank you! We appreciate the feedback.
I am a former GM for this company, this whole Franchise Partner program is a pipe dream for people new to the organization. Experienced/talented GM’s, assuming they haven’t quit because of how poor the company is doing, can barely pull this off.
The standards Sardar expects are outrageous, 6-8 months to turn a troubled store around to “gold standard” is going to be nearly impossible for someone brand new.
That person will likely be walking into a understaffed restaurant, with underpaid staff and they will be almost certainly working 24/7 to keep the restaurant open.
I left the organization from burn out of being in the industry. Could I have got to the Franchise Partner level? Certainly, but after 12 years with the company, the extra effort was not something I wanted to do.
I am a computer programming now... that’s how burned out I was.
Thanks for the insider view! Appreciate the comment.
Has anyone mentioned how much you look like a Young Tom Baker, remarkable.
Samantha Monaghan - I get that daily, especially when I wear the scarf.
Smart man! I’m trying to become a programmer myself but was intrigued by the title of this video. Your comment definitely turned me off to the idea of franchising haha
You look exactly like Tom Baker! Fucking nerd!
I always tell people it's best to hear the truth no matter how uncomfortable. My husband and I have income we are looking to invest into a franchise. He wanted steak and shake, I didn't. This was a godsend that I found this video.
Have yall found a low cost franchise?
I like how he was able to tell you whether the deal is really worth it. Many people will look at this from an emotional point of view and fail miserably.
Steak n' Shakedown
Lol😂
Hold the steak.
That is a burn worthy of the name Chaz sir. I salute you
Yeah, that was a clever one! Love it.
Laughing my fucking balls off 😂
Excellent analysis. What you said is not negative. Its the facts of the situation and its really awesome that you shared the full background story for those that might invest.
Appreciate the comment and feedback!
Man you're not being negative you're just saying it as it is: they're looking for suckers!
Happy you see it that way - thanks for the comment!
iHave NoName no he’s a fucking hater. He’s talking badly about the franchise because he’s already successful and it’s not gonna meet his financial expectations so I he’s speaking from his position. 🖕🏾
one brady dude you sound like a fool. The man is giving you facts! Go look it up. Everything he presented is what it is. Steak and Shake is having some big drawbacks and luring possible suckers like you (since you think there’s hating going on) into a trap.
@@lonb00 he sounds like Mr. Biglari
This Biglari dude sounds like a sleazy corporate raider type!
I used to work at the one in my area and we had pretty good reviews. My customers were for the most part always happy and if not I did what I could to make the customer happy. The problem is the whole 24 hour gig. If they were open until 1-2am then that would be so much better. The menu is also pretty expansive and if they would just cut it down to 3 or 4 signature burgers, a chicken fingers meal, their shakes and some form of 4 or 5 dollar meal box (pretty much every other fast food franchise has one) then I could see them being able to survive.
I read in the franchise contract, they can cancel your yearly renewal contract any year. So that means if the restaurant is doing well, they cut you out!??? Who in there hell would sign a contract like that? 😕
I live in Indy, where S&S is based, and a friend use to work in the executive suite for that company.. When BigLiar took over, clandestinely, it all went to s**t.. This new franchise model is a last ditch effort to save a sinking ship.. This is not an opportunity worth anyone's time.. Accurate review, Robert!
Thanks Ryan! I wish I had that nickname before filming - "BigLiar" - kind of catchy :-)
Stores in fort Wayne and Warsaw were rumored to have closed over health violations.. they have franchise banners on the building but no occupancy... use to love steak n shake.. it's now garbage service sucks and I'm not eating at any of the due to the health issues
I would want $100,000 a year just to manage a store for them.
So you claim that people do not earn 100k being steak and shake operators?
Steak N Shake burgers, when made by an employee who cares, are pretty fing delicious.
Now the biggest problem I have with sns is the horrible customer service. Food takes ages to come out, unprofessional waiters, and little quality control.
I stopped in one of the closed locations earlier this week (Englewood, OH). I noted the following:
1) Although the store is closed, ALL of the signage is still out as if it were opened. Imagine how many potential customers will be ticked off after leaving the interstate looking for the restaurant.
2) These locations are shuttered. Any franchisee will have to hire a completely new staff and try to get them up to speed with extensive training. From past experience in the food service industry, that is a serious commitment.
3) The fact that the restaurant must be open for 24 hours a day would be a serious impediment to me. First, there are very few locations where that would be financially feasible (i.e., near an interstate, etc. Second, your store is a criminal's ATM as you will have more cash than convenience stores.
So basically I’m going to pay 💰 $10,000 to work a year for free , pay my travel expenses, pay for the upgrades to the store and I don’t own anything after all that? Good looking out franchise city!
Right😂 thats crazy
When I read the contract and saw they can basically fire you, even the restaurant is doing well? So if I turn the restaurant around with my blood, sweat and tears and it starts making millions, you can let me go by giving me a 45 day notice??!! 🤣🤣🤣🤣 Only someone desperate (and frankly stupid) would do this.
I have always wanted to buy into this franchise. I am so glad that I came and watched this channel. I would have been so upset if I would have quit my job for THIS, NO THANKS!!
What a concept, you pay to work for somebody. What a deal.
It might as well be a MLM. Lol
rex harrison like buying a truck from ur company
Basically lol you're paying them to be a general manager
rex harrison wrong Steak ‘n Shake is the plug your just paying money to get a certain type of work that you can sell and make money for yourself and the plug. .. if you understand my terminology your paying 10000 to make 100000
Your paying them to have access to 50% of the locations profits.
You are the best. These Vlogs are so informative and very, very eye opening. What are the chances of anyone understanding every minute detail of a contract that could really trip you up, unless you are a Lawyer specializing. Crazy! Going on emotion can certainly ruin your life.
Thank you for the feedback!
So if a franchise is turned around and starts making large profit then the sTAKE & Shank can opt out of the contract at any time and take full ownership as long as they give you up to a six week notice? I'd rather make a deal with the MOB and all I had to do to get away from the MOB is torch the place and walk away with the insurance money.
So if you turn the location around they can just take it all back. Just looking for suckers.
It's so easy to be overly optimistic when starting your new business. I got into vending machines. The new technology is really nice and I assumed people would go for the healthier options. Boy was i wrong. People (mostly kids) want the same things they are used to: candy bars, doritos, mountain dew. Sometimes the kids will hit the machine if something gets hung up. You had to order new stock, write off expired stock, go to the various locations and restock things. It got out of control. The hardest part was finding a good location. Those usually were already taken by the pros, selling their garbage.
The company i bought the machines from went bankrupt. It seems like a few companies started to compete in making new vending machines and not everybody was a winner. The company that made the machines came out the big winner.
Now i'm into digital marketing and selling shovels to miners instead of ming for gold myself. No risk or overhead. I just offer my services. I don't have to be a salesman i just tell them what i can do for them.
Sounds like the Amazon Delivery franchise. And I like your point at the end of the video. Great analysis as always.
Thank you!
When you go to Steak & Shake you know what you are getting going in, you are getting a $4 double Steak Burger and fries. As fas as customer service goes that comes down to management not training employees. We have a Freddies in my town that is packed all the time and it cost about twice as much to eat there as it does S&S, I believe if there was a S&S in my town it would be packed 7 days a week. But they don't want to build new restaurants they want you to run already failing locations that are probably in bad areas that have a ton of other competition.
Good point!
If sns do not get the person out lacking distribution to keep it going n right they will crumble
You were right. They are shutting s&s down left and right ! I would not even waste my money. I have a class mate who became a franchisee of s&s this year and she is not making a dime. They say it’s because some standards have not been met quite yet but I think it’s an excuse for them to not get paid
I'm so glad I found this channel. I truly appreciate the pros and cons of each franchise analysis. I don't think they're negative at all, but just very useful information.
Thank you! We are glad you found us :-)
Sounds like a slick way for them to legally embezzle money out of people
Embezzle?
@@rhf5448 misrepresent what you're buying.
Franchise Fraud 🧐🧐🧐🧐🧐🧐
No way. They wanted to share their wealth but without sharing. The problem is the CEO And looks like there is lack of leadership. Great 👍 informative video. Thank you 🙏
Thanks for visiting!
CZcams recommended this to me today. Hope your channel starts blowing up!
SolracCAP thanks bro , I hope the same for you 👊🏾👊🏾👊🏾
S&S nor ChikFila are true franchises, the "franchise fee" is to be a glorified manager. If you pass away, the business reverts back to corporate ownership, it CANNOT be left as an asset to your heirs. This is pure tomfoolery.. Not for a actual businessowner who'd want to purchase multiple locations and manage the business as a pure owner. Corporate requires you to slave away AT THE LOCATION like an EMPLOYEE. A true business owner KNOWS the system but experiences revenue PASSIVELY. Dont fall for the banana in the tailpipe guys, take that 10k and start your own business. ✌🏽💯
Here's a radical idea, use the $10,000 to open your own food joint. Taco cart here we come!
Sure...good idea
Comes with more risk.
Comes with more reward
@@iluvcakes19 you'll never know til you try.
@@FaithandNova very true. I'm all for it. Taking risks and trying, I mean. I was just pointing out the obvious.
Informative video. If you're new to self-employment, then franchising could be overwhelming. If you have experienced the learning curve of successfully starting a business, then you'll be able to do this. Most people want maximum return for minimum effort and business simply doesn't work that way.
Wow!!! I just want to say this video is phenomenal! So much valuable information. After watching this video you have inspired me to take my $10,000 and go start my own business. I have to subscribe today!!!. THANK YOU!!!🤲🏾
When you said they lost that lawsuit because they didn’t pay their management I was out . As a company you don’t even have a servants heart to take care of your employees✌🏾
Thank you for opening people's eyes. As a cpa I do see some of the worse cases after the fact. So your service here is so valuable. Thank you for your time
It's "worst"
@@LookinAtHim what's your point?????
First task on the list. Steal your $10k back from the receipts.
Damn!!!😂😂😂😂😂
Right on
Lok
Sounds legit! 😂😂😂😂😂😂
@Fresh Bagels They don't pay you remember.
I walked in a Steak and Shake recently. No employees. Screens to order at. Took forever to get food. Wont go back. You have removed the human element, the service, and as a result, you have lost a customer.
I've been watching you a few years< I am NOT a business owner, but I always learn a lot from you. You are a highly competent and effective presenter. Salute
franchise city is not a negative channel at all! FC is a realistic channel! hey Franchise City, love your work and wondering if you guys can do a video for what seems to be trending on FB these days and that's selling stuff on Amazon. I've seen about a few dozen videos from different ppl doing "workshops" on teaching ppl how to do it and i just think there is more to it than what they advertise. They say you can make over 300K a year selling stuff on Amazon, some claiming they make 800-900K a year and they wanna teach the "secrets". Call me greedy, selfish or just a bad person overall but if I knew of an untapped business that's making me 300K a yr, the last thing I'd do is share my method with millions of ppl. I mean, why invite competition? plz do a video on this type of business. thanks
Here's a management job for $10,000 congratulations
Give me your money to work my store and pay my loan. Lol
knowing how they work
this is very accurate.
id rather spend the 10k in amsterdam have all the ladies in entire week
Lol right 🤣
I read the fine print, they can terminate the contract after a year if the restaurant is making money and they no longer need you!?!!! Who would sign something like that??
Steak ‘n Shake was my first job. I worked there from 07 to 10’. Let me tell you back then at least at my store, they took customer service very seriously. I was a waitress and if you ever got even one call to corporate you were at risk of getting fired. Now the last three years the location that I used to work at and all local locations to me went to hell. The managers didn’t care. The staff was all kids who were rude, and too busy on their phones or talking with friends to do their jobs. I was amazed at the difference. Not to mention there supposed to be 24 hours and the last several years 1/2 of the time at night they would be closed down cause they “ got a truck in”. Give me a break. When I worked there we never closed except every 3 months for 1 night for cleaning the hoods. It truly was a hard job and it was awful. I’ll never forget having to make 50 shakes by myself at night and wait on everyone alone. Just myself and a drive through person who was also the cook. Such a horrible experience. They should just close down permanently. Their reputation is ruined and it’s their own fault
This restaurant has really good food. I don't understand the low ratings😔 hopefully they get it together. Every company has problems.
🍀 Wish them the best!
This was very helpful, thank you! I saw their franchise ad and considered it, but thought "Are they desperate for money?" Well, according to what the CEO makes, it's a "No thank you" for me.
The greed in this world is beyond belief. I'm not going to play your Captain Save-a-ho manager to help you make millions while I scram to fix your milkshake machine and slip and slide on grease 50+ hours a week and not see a dime until 1 year. FOH.
Former GM for SnS here. I’d be very wary of any dealings with Biglari. A couple of examples to get a feel for his business practices. In a phone conference on the last day of the quarter he changed the standards for bonuses retroactively for the whole quarter. Not just an extension of goals, but a completely new set of standards. Stated reason was too many GMs would get the bonus. Another conference call said that there would no longer be pay increases for managers or staff. Any staff making over minimum wage would have their pay cut to minimum wage. This was said to be due to financial troubles. Within a couple weeks Biglari quadrupled his salary.
Wow - enlightening info. Thank you for the comment.
100% correct!
Their business model makes it difficult to be successful. People are used to how fast they can get food at places like McDonald’s. The sns setup means it is going to take a lot longer to prepare food. The one near my house has a very slow drive thru and so commonly gets your order wrong I just quit using it.
Chik fil a does have good service but they have been very smart with their menu. They are able to prepare this food much quicker and more consistently than sns
McDonald's use to be fast until they decided to take the fastness out of it 35 years ago. They don't understand customer service anymore.
They expect to serve more people with less servers and less cash registers and all they are doing is losing more customers and managers are not listening
And as far as I am concerned managers are in a salary which means they are expected to work more hours with no time and a half. They want time and a half then go hourly.
Wow, I was really considering doing this for the last week. Glad I saw this
Yeah I was as well glad I saw this
You me also
I was too, not anymore.
Same lol
Hahaha I’m curious why you even considered this
Well I guess Imma have to just stick to CZcams and try to open my own business eventually thank you so much Robert you've been very helpful subscribed
Would love to hear from some of these $10k franchisee's and see what their experience was.
people not knowing negatives is worse for them and many do not see it so showing and explaining it is actually 10x better than giving them false hope of making billions on something they will not make much at. you provide a service telling people truth good and bad of it anyone who listens can see that and those that do not see it well they are tuned into one side more than the other and need to be able to see both aspects. Thanks for sharing the wisdom.
So, you could fix their failing store, and they could take it back off you.
Exactly what I was thinking.
Why would they do that?
If it sounds too good to be true it is! You build it they will take it.. Doesn't sound like a "franchise" sounds like a scheme to benefit the CEO and not those on the ground putting in sweat equity and their livelihoods both financial and personal. Thanks for the info
Like being a lease purchase owner operator in the trucking business!!!
Well I see the parallels but there are some instances where guys do well doing that. That compared to steak and shiet food is 95cpm in dry van 1,000 miles and 1,200 in fixed cost
Rod Stiffington doing well is just another way of saying I've just adapted to the bullshit.
@@jamesnevitt3400 that's life itself
I wouldn't want to get onto the restaurant business but our family does like going there. It's actually a really good deal. For about the same price as taking the family to McDonald's we get waaaaay better quality and sit down service.
Fantastic analysis and channel. You've undoubtedly saved some people from a financial blunder and a lot of headache and heartache.
2 1/2 minutes and I decided to subscribe. It was a clear and informative video. Wonderful job I look forward to seeing more
Thank you so much for posting this. A friend of mine and I were discussing the idea of a Steak-N-Shake franchise just the other day. Typical corporate dickheads trying to figure out how to put their hand in your pocket.
I mean any person with common sense would say “own a franchise for only 10k?-30k?” Sounds cheap / anyone would have one ☝️. Always a catch . So glad I listened and learned. Knowledge is power . Great teacher you are .
Anyone that didn’t already assume all this has no business running a restaurant anyway. If they were doing great they wouldn’t be handing over the keys to a million dollar restaurant for 10k. Only a very experienced restaurant leader that is capable of turning a business around and putting in the work can pull this off. Also like he said, it would still be very tough because I’d almost guarantee the Steak ‘n Shake corporate is not going to be very supportive in doing what it takes financially to upgrade the atmosphere and equipment of a run down restaurant.
Thanks for the comment!
This is the reason that makes me not to get into any business or buy a fanchise before going through Franchise city!. Always love your videos and the honest reviews!. As a research scientist and detailed and analysis oriented, I would say your analysis is really amazing!. Once I am financially ready I will get in touch!
Appreciate the comment - thank you!
I remember S&S opened up near my house. It closed within a year
That was good and thorough. There's much more to consider, but the fundamentals are everything. Too many 1st (and 2nd) timers believe they are going to be the outliers and this dispels a lot of the dreaming without being pessimistic. Some would be amazed at the amount of work to run a simple hot dog stand. Thus, the lure of franchises with established brands, procedures and success formulas that the average new business owner would not think of right away. Many states have laws requiring the franchisor to submit its franchise agreement (circular) for the record, because so, so many people have lost money or didn't understand the agreement. I can go on for days, but I'll just say that this is a very insightful video that can help a lot of people. Read those Franchise Agreements! Good post Sir.
Thank you! Your comment is bang on - appreciate you taking the time to leave it.
If they took my 10 g's, I'd definitely have to put ✋ ✋ on somebody. 😐
Love your honesty and simplicity. I've seen steak and shakes shutdown left and right near me. Seeing that is enough for me to stay away.
Thanks for visiting!
Sounds like they are looking for another method of getting managers and not paying them OT. Very shady stuff you found in that agreement.
I was at the St Josephs, MI, location in 2013 and it was the best drive-thru I have seen in years. the food was excellent and the shakes, too. it was made to order. I went from east coast to west coast and they don't have them on either...but Michigan rules on steaks and shakes.
24 hours? That would make absolutely 0 sense. No one except for stoners and drunk people are going to come in and get burgers and fries in the middle of the night.
This is going to become a popular business model for franchises in the future. It's working for Chick fil A and amazon is using this concept for delivery companies.
I agree - if it is done correctly it can be a low investment opportunity that allows new entrepreneurs with minimal capital to get into their own business.
@@FranchiseCityOnline I don't agree with "get into their own business" I think it offers an opportunity to buy into a good paying job for someone willing to work really hard and does not have the capital to own their own business. It can be a good opportunity for someone to get their feet wet before diving into a franchise with no experience.
Thanks for educating me. I live in St Louis and I've been seeing a lot of for sell signs and ads of all sorts on this and I knew it sounded too good to be true.
$10k to own a Steak and Shake? Sounds too good to be true? It is. Great video! Thank you
That just the franchisees fee. The property, building, appliances, and rent if applicable is figured in on that amount.
Wut... Man I had no idea steak n shake had so many problems no wonder there aren't any in my area anymore.
Yep. Glad I watched this. I had actually said that my town needs a S&S. I won't be the one to put it together! Thank you, sir.
Love Steak and Shake burgers along with their shakes!
This was so good and informative!! I live in St. Louis where they have a bunch of these available for franchise. They closed all but about 2 and I see now why. SMH I was actually considering this. Thanks
Thanks for visiting!
28 dislikes from CEO (who make 30+ Mil) and his friends. No equity in the business and they can change the terms at anytime? Sounds kinda shady.
You break thing down so well for everyone to understand, thanks.
I almost bit the bait....I’M GOOD!!!!! Thanks for the information.....I really do feel like I could do it....but it’s simply not worth it
Agreed 🧐!
The 10k 🍞 is the easiest part in all of this. But that changing policy whenever they want & not having another business 🤔 Learned long ago not to put all my eggs 🥚 in one basket 🧺.
Pra Autoss right...they can still “let you go” & here in Colorado to have a building & not have the equity is really playing yourself....plus in a over all thing the business isn’t doing so well....it’s kinda hard to see the appeal in this really
I highly recommend to go into a SNS and work there as an employee and observe what’s going on for several weeks/month to see if it’s worth $10k into something your not certain about and if don’t work out you can quit and still have your $10k. Pay of the cash flow coming in and what’s going out on bills and supplies.
The equipment you have to lease, no equity, how do you acquire customers from all your competition, sounds tough
Absolutely the best made videos in town. Thank you very much for your hard work. How can you help but be successful with a company like this
How can you possibly make money when half of the menu is $3.99-4.99 per plate? The prices are too low and the service is too poor to ask for more.
jlawrence01 I’ve never eaten at stake and shake and honestly I don’t think many people knew that.....I’m about to go look if this is true I’m about to make stake and shake my new fast food place
@@dark12ain they have tons of options for 4 dollars. No drink tho
Simple, you have to OWN 500 of them.
Sounds like a corporate nightmare. I used to work at Chilis. Horrible place to work. Same corporate greed passed down to employees. Then passed down to customers. Creating a very hostile environment for everyone.
You have to pay overtime... I have won over $20,000 for back pay from companies that didn't pay me overtime
You didn't win it , you were owed it , plus interest in my opinion, plus a cut of the profits that your money help fuel as they moved toward business success... :-)
So much value on this channel, thank you for the great content!
Steak n Shakes are closing in my city. 2 in the past month.
Yeah, they just closed two in my area too, but it was for failing their health inspections. They were not washing food surfaces and their walk in refrigerators were barely below room temperature. S&S are nasty af.
@@gir5o1 317
@@gir5o1 yeah, it actually would be better if the majority closed. the one near me that closes is immuculate.. but alas corporate is not hot on it :/
My uncle was a owner of a steak and shake and it was terrible he didn’t make much money and worked mad hours he had to close it because his partner backed out. I told him before hand it takes a fast food place a long time to make money....
I love steak and shake food. I bet I could get a store profit. If I had money I would definitely do this. I ran a Checkers in Florida I was up 18% in sales and the corporate was down 7%.
Great information!!!!!....I’m sure steak and shake is probably pissed that he unleashed all this information as thoroughly as he did 🙌🏽...hey you can’t be mad at the truth ..
Its like renting a house. You have no control only access.
actually it's more like "owning" a house. renting is easy to walk away from and you don't lose anything. try doing that when you own a house.
Difference with a home u don’t have to pay your bill for a while before they can kick u out, rent is month to month damn near
I always appreciate the business breakdown invaluable information that usually has a price tag. You are indeed a rare individual.
Thanks for the kind words!
I hope they don’t screw up the shakes!! They can lose the cherries and save a mil but how much have they saved NOT filling the cup on all the shakes I’ve bought over the years?!
Not enough apparently :-)
Well pig you don’t need all them calories and cost cutting ingredients either so consider it a favor and avoid
Rod Stiffington 😂
In general, I like the Franchise City videos and find the insights to be very helpful. This one is no exception. Although it doesn't come out and say Steak 'n Shake should be avoided, it clearly gives the viewer the impression that this could be a very unwise and costly investment. What confuses me however, is if Steak 'n Shake is so bad, then why does Franchise City highlight it as one of the "Examples of Franchises We Represent" in its on online brochure which can be downloaded from its website (see page 11 of 19)?
Thanks for the question! We don't vet the franchises on our website. Any franchise can be listed. We would hope that anyone looking for a franchise contact us to receive our free reports and insider views, but they are under no obligation to do so.. Also, the Steak n Shake opportunity on our website is not the $10,000 offer, it is the original full restaurant option which was an investment of over 1 million.
That Guy Nate Showed one in Ohio that was abandoned that had a banner saying franchise this location for $10k. but I bet that's not including probably $5k a month for the lease plus all the other overhead and having to order all the food their distributor vs Gordons Food Service that's way cheaper.
Just a update on my recent trip to a stake and shake in Nashville Tennessee, apparently they have got rid of all the waiters in a attempt to save money on that part, the store is now a self Serve keos, (no one to take orders in person) and they now call out your number of your order and you come pick up. A lot of this is most likely due to post COVID situation, but I feel like it’s for the best , it cuts down on floor traffic and saves the company money on employment,
Good info! Thanks for the comment.
Thank You for the unabashed pragmatic and revealing truth about this so called offer
We called him BigLiar. He made sweeping changes by importing cheap Canadian beef . He cheapened the brand, and lost loyal customers.
He demoted some of the best managers. He closed the commissary in 2010 for a 3 year deal with Sysco (Sygma). Once the sweet deal was up, he had no bargaining chip to keep foodservice costs down.
When the commissary was in operation, if an outside foodservice company tried to raise their prices, we would just say no, we'll just deliver it with our own trucks and drivers.
You should have given a little more background on Bigliar, that alone would keep people from wasting their money. His wealth comes from his daddy, and his daddy's wealth came from US taxpayers. His daddy was a general in the Iranian army that defected. He was actually given a bs job. I can't remember the title, but he was paid to go from store to store which required a security detail since there was still a bounty on his head. I doubt driving around the midwest in brand new Mercedes with 6-8 secret service types was cheap.
Bigliar is probably one of the most arrogant people that I've ever had to listen to. He would do conference calls, he would never come to the commissary and lie to us face to face. When he was called a Wannabe Buffett, he thought they were comparing him to Warren.
It sounds like bad leadership.
Having experienced managers may or may not be good. I have known a few and while some are very diligent others are lazy, have a bad attitude, use the waitresses as their own "flower "garden" in short are walking business disasters.
My wife and I love steak N shake food but rarely go there due to horrible service and they do not have a clean feel.
A new candidate may do better if they are diligent and ethical but it would be a high hill to climb. Very risky.
Tiimfunds manage to go above and beyond for every piece of job that they do. Greatwork!
Damn I better go eat there before it closes to remissness on old memories
I think they need to change to a fast food format, maybe like a Culvers. When you see $4 combos served on real plates with real silverware you cannot help but wonder where they are cutting costs.
Hi, thanks for the content! Can you look into Tropical Smoothie? Thanks!
Added to the list - thanks!
This is in my Top 5 educational, informative CZcams channels I've seen