Restaurant chains across the U.S. have spent the past several years cutting labor costs, redesigning service models, and pushing more orders through kiosks and apps. At Steak ‘n Shake, that shift has become a defining change, with longtime fans increasingly tying their decision to stop visiting to the brand’s move away from its traditional diner-style service.
Steak ‘n Shake’s dining room overhaul changed how customers order
Steak ‘n Shake publicly confirmed its service reset in early 2021, when parent company Biglari Holdings said dining rooms would reopen with self-service kiosks instead of table-side ordering. In his shareholder letter dated March 4, 2021, Chairman and CEO Sardar Biglari said guests would initiate transactions at kiosks, a move later echoed in company filings with the Securities and Exchange Commission. Restaurant Business also reported in 2021 that the chain was embracing kiosks after a financial rescue led by Biglari.
That change was not limited to a handful of stores. In its 2025 annual report, Biglari Holdings said its restaurant businesses included 435 company-operated and franchise units as of December 31, 2025, and that seven of the 131 company-operated Steak ‘n Shake stores were closed at year-end. In a separate 2025 shareholder letter, Biglari said the company had converted 179 company-operated units into single-unit franchise operations by the end of 2025.
The company has presented the changes as part of a larger operating transformation rather than a short-term experiment. Biglari wrote in prior communications that the old business model was no longer suited to current economics, and the company’s public reporting shows the chain has continued adjusting store ownership and operations in the years since kiosks were introduced.
Customer frustration is visible, but the full scope is not publicly measured
What is confirmed is the model change itself; what is not publicly quantified is how many customers have stopped visiting because of it. Steak ‘n Shake has not released a national customer-retention figure tied to kiosks, nor has it published a comprehensive breakdown of complaints by market. Still, public feedback collected in reviews, forums, and app-store comments shows recurring concerns about self-ordering, tip prompts, slower service, and a different in-store routine.
The reference material behind this story points to that pattern. NewsBreak, citing customer comments posted on Reddit and Yelp, highlighted complaints about shrinking burger portions, inconsistent shake quality, and confusion over how service now works inside some restaurants. Some customers described not knowing where to sit, when to pick up food, or how to get assistance if an order went wrong. Others focused on being asked to tip during a kiosk transaction with limited staff interaction.
Those complaints do not amount to a scientific survey, and they should not be read as representative of every location. Some customers continue to report solid visits at individual stores. But the consistency of the feedback across public platforms suggests that for at least part of Steak ‘n Shake’s customer base, the company’s new service format has become a deciding factor in whether they return.
The company says the reset was driven by economics and a broader turnaround
The clearest documented reason for the changes is financial pressure. Biglari Holdings’ filings state that most Steak ‘n Shake dining rooms reopened during 2021 with a self-service model, and company reporting has framed the shift as part of a broader turnaround after a period of distress. Restaurant Business described the move as following a last-minute rescue, while Biglari later said the previous operating model was ill-suited for the modern restaurant environment.
Recent company documents indicate the strategy has improved financial performance, even as it changed the customer experience. In his 2024 shareholder letter, Biglari said Steak ‘n Shake produced $20.1 million in pre-tax operating earnings in 2024. The 2025 annual report and 2025 shareholder letter also point to continued refranchising and tighter operating control as major parts of the brand’s strategy.
For customers, that means the Steak ‘n Shake they remember may not be the one they encounter now. The company has continued to describe the business as fast and focused, and its filings show the transformation remains active rather than complete. For diners, the practical reality is that service style, staffing levels, and store operations may differ from the chain’s earlier full-service model, even as the brand remains in expansion and conversion mode.
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