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Steak 'n Shake sales surge after beef tallow switch, but closures still haven't stopped

"I'd rather go there now … If I had one close to me."

A Steak 'n Shake building.

Photo Credit: iStock

Steak 'n Shake says sales rose by double digits after making two attention-grabbing ingredient changes — replacing seed oils with beef tallow and switching its burgers to grass-fed, grass-finished beef.

The catch is that the fast-food chain is still closing restaurants even as the overhaul appears to be winning over customers.

Here's what to know

According to an Instagram post made by Localize (@localizefood.app), one of the biggest changes came in during the summer: "In June it moved every restaurant nationwide to 100 percent grass-fed, grass-finished beef."

Localize attributed the sales improvement to "the overhaul and heavy marketing," but that momentum hasn't solved everything. Steak 'n Shake's chairman has also said the company continues to close restaurants.

So while the ingredient revamp may be helping at the register, it has not erased the chain's larger operational problems.

A national burger chain now offers an option for people who prefer beef tallow over seed oils or want a grass-fed beef burger without going to a specialty restaurant.

More background

Big chains often tweak recipes or trial new menu ideas in select regions first, but Localize presented this as a systemwide change rolled out across all Steak 'n Shake restaurants.

For a large chain, consistent sourcing can be especially difficult to pull off at scale. Because the post highlighted 100 percent grass-fed, grass-finished beef, the change represents a far more significant sourcing and branding effort than a temporary special or regional test.

Some commenters treated the sales bump as evidence that diners care about ingredients, while others said they would like to see the company go even further. One commenter wrote, "Imagine if they switched up the rest of the ingredients too? Hopefully it's a start."

The reaction also suggests people are watching closely to see whether the company's "cleaner" food messaging extends across the rest of the menu.

What can be done?

Localize's own recommendation was straightforward: "Skip the chain and find a grass-fed rancher near you on the Localize app." For people who care most about sourcing transparency, local or regional producers may offer a clearer picture of where their food comes from.

For consumers who do rely on mainstream chains, Steak 'n Shake's sales bump still offers a useful signal. It suggests large brands can respond when enough customers reward ingredient changes with their spending. If you want to encourage more of that, you can also support eco-friendly initiatives by mainstream brands.

The rollout shows that a chain can make a nationwide ingredient change, even if Steak 'n Shake's ongoing closures indicate the financial results are still mixed.

The ingredient change may have improved Steak 'n Shake's appeal, but convenience still matters. As one commenter put it, "I'd rather go there now... If I had one close to me."

Where can I learn more?

Steak 'n Shake isn't the only food brand changing what goes into its products or how its restaurants run. These stories cover McDonald's packaging tests and shifts in restaurant energy use and waste at Taco Time Northwest and Wendy's.

• McDonald's is testing methods to cut plastic across its fast-food operations.

• Taco Time Northwest showed that switching to compostable disposables could reshape waste across its restaurants.

• Wendy's paired a new community solar partnership with electricity for more than 100 U.S. stores.

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