CURRENT ISSUE
| Cover Story |
| Columns |
| Shake It Up |
| Cover Story | |
| By Kate Burrows | |
| Tuesday, 14 March 2006 | |
 Dedicated to providing a unique dining experience, Steak n Shake says it is committed to allowing its employees to make a difference in the company. Founded in 1934 in Normal, Ill., by Gus Belt, Steak n Shake debuted as a modest diner where the cooks ground all the meat in front of its guests. “Gus would wait for the busiest time in his counter-only restaurant, wheel in a barrel of steaks, and grind the steaks into burgers right in front of the guests,” the company explains. With a unique concept from the beginning, Belt soon expanded the restaurant’s offerings to include curbside service after seeing a growing customer base. “Steak n Shake had to quickly make changes in order to accommodate its ever-increasing demand for the high-quality food served on glass and china at reasonable prices by friendly servers,” the company says. “[Belt’s] first move was to purchase a chain of restaurants in central Illinois, and convert them to Steak n Shakes.” Responding to this increased demand, the company says, it soon embarked on a path of further expansion. In 1939, it opened restaurants throughout the region, expanding to St. Louis, Indianapolis, northern Illinois, Daytona Beach, Fla., and Hot Springs, Ark. With customer demand still growing, the company says it “led an aggressive program to satiate the intense demand for Steak n Shake and grew to 130 units in 1975.” Part of its expansion strategy, it adds was to move away from the curbside service and enter the drive-thru segment emerging in the mid-’70s. In 1981, after the company was sold to E.W. Kelley & Associates, it underwent major changes to better meet the needs of its customers. “Understanding that guests’ needs had changed little since 1934, Mr. Kelley swiftly returned the restaurant chain to its roots, stressing the preparation of cooked-to-order food, served to guests with real china, glass and flatware,” the company says. “Menus were updated with melts, salads and breakfast items. And to meet an ever-increasing demand, all Steak n Shake restaurants began to operate 24 hours a day, seven days a week.” In the mid-’90s, the company began enhancing its visibility by actively reinforcing its historical roots from 1934, focusing on the attributes of quality and the imagery it still maintains today to increase its brand awareness. “Steak n Shake began growing again in 1990, sparked by the knowledge that a successful brand must evolve in order to prosper,” it explains. “By 2003, the company had doubled in size.” Classic Offerings Vice President of Franchising Brad Manns says Steak n Shake’s menu offers many of the same items today as when the company debuted. “Our core products – steakburgers and milk shakes – are still made the same way.” But, adds Manns, “In recent years, we’ve continued to make sure the beloved classics we offer will satisfy consumers’ evolving tastes – like our new Premium Topping Steakburgers, with toppings that complement The Steak n Shake favorite.” Additionally, the company says, its steakburgers are made with 100 percent pure U.S. beef, and every burger is made-to-order. Made from top-quality T-bone, strip steak and sirloin, the company says, the steakburger is one of its most popular menu items. Steak n Shake says it also offers hand-dipped milk shakes, made with real milk. These products include classic flavors such as chocolate, vanilla and strawberry, as well as a host of seasonal and holiday flavors. With a variety of toppings, the company has recently introduced several innovations in this product line, expanding its milk shake line to include Sippable Sundae and Side-by-Side milk shakes. The Sippable Sundaes, Manns says, are created from the restaurant’s classic milk shakes, adding sundae toppings like caramel, hot fudge, other types of sprinkles, whipped cream and, of course, a cherry on top. The Side-by-Side milk shake, he continues, allows the customer to choose two different flavors that are poured vertically into the same glass together. Along with its milk shakes and steakburgers, Steak n Shake offers a full menu of salads, entrees, soups and dessert items. For guests desiring nutritional information, the company allows its guests to access the dietary content of all its menu offerings on its Web site. “Many of the foods in our full, varied menu can be part of a balanced diet,” it adds. “Our deluxe garden salad with fat free Italian dressing may be enjoyed with a side of cottage cheese, a cup of vegetable beef soup and any diet soft drink – a meal choice that yields less than 500 calories and under 24 grams of fat. Informing guests about the ingredients of our meals is a priority for us – and if [customers are] wondering about the nutritional content of any menu item, we’re always here to help.” In addition to growing its menu offerings, Steak n Shake is also growing its market reach by expanding geographically through its company-owned locations and franchise operations. Of more than 450 stores, the company has approximately 50 franchised restaurants, with the first franchise offered 10 years after the company’s inception. Manns says the company has a strategy to grow its franchise operations in new and existing territories. “Today, most of the franchises are located in smaller surrounding markets around the larger company-owned markets; however, recent expansion into new markets has been made by franchisees. Steak n Shake is concentrated heavily in the Midwest, South and Southeast.” Moreover, the company is “looking to increase our market expansion by growing company-owned stores in existing markets and select new markets,” he explains. “Presently, we are in 20 out of 50 states, so there is a lot of room for growth.” He adds that the company’s concept ultimately seeks to provide a variation on the typical fast-food dining experience. “We are a company that occupies a unique position between fast food and casual dining,” Manns says. “Unlike fast food eateries, we cook our menu items to order, and serve them to guests’ tables on real china. And compared to casual dining, we deliver our meals to guests more quickly and less expensively. When you look at what distinguishes us, no other brand provides an experience like ours.” Change with the Times Manns says the company went through a brand image evolution in the mid-1990s. “The most radical changes occurred when we returned to the black and white theme,” he says. “It had a huge impact on our visibility – our building became a branded billboard in and of itself.” More important than the building appearance, Manns says, is the restaurant’s stated goal of “inspired, loyal associates creating delighted, loyal guests.” To achieve this end, the company is training its staff to use proven customer service techniques to improve the guest experience. “There continues to be additional competition and innovation in the restaurant landscape,” he explains. “It really motivates us to improve our game from a service perspective.” To ensure high-quality customer service, the company puts an emphasis on training procedures for all employees. “Every position has a training process attached to it,” he explains. “The process consists of a number of elements – there is a video component, tests and an observation process where the new associates must demonstrate that they can perform the functions correctly to a certified trainer.” The company also evaluates each restaurant as a whole, and measures it by the percentage of fully trained employees. “We expect every restaurant team to have a new hire certified in at least one position within 30 days of the date of hire,” he adds. Additionally, he says, the company focuses on ensuring its customers leave the restaurant happy. It encourages customer comments and offers a phone number on its receipts that allows guests to speak to the company about their experience. Furthermore, he adds, 61 percent of those customers who call in rate their dining experience with a perfect score. To ensure customer satisfaction across the board, the company’s management team undergoes consistent training regardless of its members’ level of experience. “From introductory classes to refresher courses, we offer expert training to new hires and veterans alike,” the company explains. “Our renewed focus on leadership education will better position us to achieve operational excellence and delighted guests, now and with our future expansion.” As the company emphasizes customer service, Steak n Shake says it involves its employees at all levels of the organization in the company’s vision of the future. “Much of our success comes from the involvement of our associates to improve how we operate,” Manns says. “Our strategic plan is built on providing real tools to better support and enable our leaders. We focus on our management team by giving them the tools they need to make them better leaders. One tool is an annual survey of associates across the system to see what they think and understand what we can do better.” Furthermore, Manns says that as a result of implementing annual surveys, the company has seen a steady decrease in turnover rates. “We study and measure the results of the surveys, and develop plans to address the results,” he explains. “We recognize the value of happy and well-trained associates.” The company explains that its employees’ levels of satisfaction and success influence the experience of all guests. “Before we can delight customers, we need to attract and retain dedicated associates,” the company says. “We must earn the loyalty of those who earn our guests’ loyalty. To do that, we must maximize our workers’ involvement in the company by listening to their voices. We’re also involving all managers and many of our hourly associates in the development of our plans to improve each restaurant. We are working hard to provide each associate the chance to make a difference.” The company also credits the opportunities for advancement into management positions for a steadily decreasing turnover rate since 2003. “We acknowledge associates who have gone ‘above and beyond’ in their service to other associates and guests,” it says. “Yet even more than recognition, our associates want opportunities for growth and advancement. The number of associates who are fully trained and certified in their position is now at a record high level. We are finding more associates than ever who are eligible for promotion into the ranks of management.” Listening closely to its employees, the company has gained greater insight into its customers’ needs. “Many of our best ideas come from our associates,” it continues. “Over the next year, we will begin piloting new ways to capture ideas from across the company. The key to this process is to ensure that all ideas are genuinely evaluated, and that the right ones are fully implemented. Over time, we’ll capture better ideas from the field, discovering ways in which associates can be better utilized, food can be more efficiently prepared and guests more effectively served and delighted.” It’s all part of a process that Manns says has been informally in place since Gus Belt wheeled out his first barrel of steak cuts in 1934. “It’s always been about that magic moment when an inspired associate delights a guest, and earns his or her loyalty,” he says, chuckling. |
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