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Archiver > StLouis-MO > 2005-10 > 1129514705
From:
Subject: Re: [StLouis-MO] Hampton Steak n' Shake
Date: Sun, 16 Oct 2005 22:05:05 EDT
FYI -
For all interested in Steak N Shake's origin:
Gloria
=================
History
Gus Belt founded Steak n Shake in Normal, Illinois, in February 1934, when he
converted the combination gas station/chicken restaurant he owned (Shell's
Chicken) into a hamburger stand. The company's website suggests that Belt
"would wait for the busiest time in his counter-only restaurant, wheel in a
barrel of steaks (including round steak, sirloin steak, and T-bones) and grind
the steaks into burgers right in front of the guests."
This was reportedly the origin of Steak n Shake's other slogan: "In Sight It
Must Be Right." This slogan also refers to Steak n Shake's open grill line,
maintained to this day.
Following the success of the original restaurant, Belt purchased a chain of
"Goal Post" restaurants throughout Central Illinois, converting them into Steak
n Shake restaurants. He also added curb service at this point.
Steak n Shake continued to expand throughout Illinois following the death of
its creator in 1954, with ownership passing through many hands; including
Gus's wife Edith Belt (who ran the chain until 1969), Longchamps, Inc. (an east
coast steakhouse company who owned the chain from 1969 to 1971) and the Franklin
Corporation, led by Robert Cronin, author of Selling Steakburgers: The Growth
of a Corporate Culture. In 1981, Steak n Shake was sold by Franklin to E.W.
Kelley and Associates, whose chairman, E.W. "Ed" Kelley was considered largely
responsible for the growth of the restaurant until his death on July 4, 2003.
The brand had been declining during the late 70's, and in 1984 was in the red.
Kelley hired the former head of Circle K to turn the business around. Steak n
Shake rapidly improved and expanded throughout the 1990's and into 2000. In
early November of 2004, The Steak n Shake Company entered into an agreement to
buy out its largest franchisee, Kelley Restaurants, Inc. (which is owned by
the late Mr. Kelley's family). KRI's 16 sites will be purchased for about $1
million each and are mainly in Georgia and North Carolina markets.
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