INDIANAPOLIS — Steak 'n Shake permanently closed 57 of its restaurants nationwide during the first quarter of 2020 as its parent company attributed major financial losses to the COVID-19 pandemic.
Biglari Holdings Inc. announced in its first quarter report that Steak 'n Shake's revenue plunged by $59 million compared to the same time period in 2019 as its restaurants were limited to accepting takeout, drive-thru and delivery orders.
"The COVID-19 pandemic had an adverse effect on our restaurant operations," Biglari said in its quarterly report.
The report said 51 of the Steak 'n Shake locations that closed were company-owned, while six were franchised, although it is not clear how many of the restaurants that closed were located in Indiana. The closings decreased the number of Steak 'n Shake locations to 553 from 624 at the end of the first quarter in 2019.
The report also said 62 of Steak 'n Shake's 306 company-owned restaurants were temporarily closed as of March 31.
Dining rooms at most of the Indianapolis-based burger and milkshake chain's locations closed March 17, while the rest shuttered by the end of the first quarter, the report said.
"The COVID-19 pandemic has adversely affected our operations and financial results," the report said. "The COVID-19 pandemic could cause disruptions to our supply chain. Moreover, we cannot predict how the outbreak of COVID-19 will alter the future demand of our products."