During fiscal 2005, Steak n Shake opened 19 new units and four new franchisees units. The Company owned units were built in the Florida, Indiana, Ohio and Texas markets, with a franchise opening creating a new presence in Arkansas. During such time it completed the purchase of 17 restaurants owned by Kelley Restaurants, Inc. (KRI), a former franchisee. Steak n Shake's franchising program is designed to extend brand name recognition and derive additional revenues without substantial investment by the Company.
The Company operates a distribution center in Bloomington, Illinois, from which food products (except for items purchased by the restaurants locally, such as bakery goods, produce and dairy products) and restaurant supplies are delivered to 102 Company-owned and nine franchised restaurants. The restaurants served by the distribution center are located in parts of the Midwest (primarily in Illinois, Missouri, Iowa and Wisconsin). The restaurants that are not serviced by the distribution center obtain Company-approved food products and supplies from two separate independent distributors, one with locations in Orlando, Florida and Pryor, Oklahoma, and the other with a location in Zanesville, Ohio.
Steak n Shake is in the process of testing new Premium Topping Steakburgers for future launch. Offerings for these new Premium Topping Steakburgers include Three Cheese, Hickory Smoked Thick Bacon and Grilled Mushroom 'n Onion. As of September 28, 2005, the 49 franchised Steak n Shake restaurants operated by 17 franchisees, were located in Arkansas, Georgia, Illinois, Indiana, Kentucky, Mississippi, Missouri, North Carolina, Oklahoma and Tennessee. The Company assists franchisees with both the development and ongoing operation of their restaurants. Its management personnel assist with site selection, approve all restaurant sites and provide franchisees with prototype plans, and construction support and specifications for their restaurants. Steak n Shake's staffs provide both on-site and off-site instruction to franchised restaurant management associates.
The Company's financing subsidiary, SNS Investment Company, Inc. assists qualified franchisees in financing the development of one or more franchised restaurants by purchasing or leasing approved sites from third parties, constructing the restaurant and leasing or subleasing the finished facility to the franchisee. As of September 28 2005, six restaurants were being financed through this subsidiary.
Steak−n−Shake Chili Recipe
- 2 tablespoons oil
- 1 1/2 pounds ground beef
- 1/2 teaspoon salt
- 1 can onion soup
- 1 tablespoon chili powder
- 2 teaspoons ground cumin
- 1/2 teaspoon black pepper
- 2 teaspoons cocoa
- 2 cans kidney beans
- 1 (6 oz.) can tomato paste
- 1 (8 oz.) can tomato sauce
- 1 cup cola (Coke, Pepsi, or generic)
Brown ground beef and salt in oil. Put soup in blender, blend for 1 minute. Add all to crock pot. Drain beef and beans before adding to pot. Let simmer on low for 6 hours or on high for 2 hours.