Product details

Steak 'n Shake, one of America's oldest and most iconic fast-food chains, was founded in Normal, Illinois, in 1934. When Biglari Holdings assumed control of Steak 'n Shake in August 2008, the company was struggling and incurring losses of approximately USD100,000 per day. To turn the company around, the new owner implemented an aggressive pricing-discount strategy marketed as '4 under USD4' that offered any of four different meals for under USD4. The strategy worked. Steak 'n Shake went on to post seven consecutive years of same-store sales increases. However, in 2016, sales began to drop, and the company posted five consecutive years of declining store sales. The price-discounting strategy may have been critical in reversing the company's fortunes, but had it also led to Steak 'n Shake's current issues? Should Biglari Holdings consider raising prices of menu items? Would customers accept paying higher prices after being accustomed to Steak 'n Shake's traditionally low pricing strategy?