In a noteworthy development for the restaurant industry, Steak ’n Shake has reported a significant increase in same-store sales following its decision to accept Bitcoin as a payment method. Although the company has not provided specific figures relating to the impact on its revenue or profit margins, it emphasized that the sales have risen “dramatically” since implementing this change.
Nine months ago, Steak ’n Shake embarked on its Bitcoin journey, creating a corporate financial strategy that routes Bitcoin payments into a corporate reserve known as the Strategic Bitcoin Reserve. The reserve has grown to encompass approximately 161 BTC, valued around $11 million, which the company is utilizing not only for operational benefits but also to fund employee bonuses. The firm has committed to compensating employees in Bitcoin, offering $0.27 in crypto for each hour worked, subsequently implementing a two-year vesting period for these bonuses.
The company originally teased its transition to Bitcoin in May and formally began accepting the cryptocurrency later that year. Steak ’n Shake framed this initiative as combining a cash-generating business model with the transformative potential of Bitcoin. The chain indicated this strategy represents a move away from conventional payment structures, allowing it to leverage the distinctive aspects of digital currencies.
Industry insights from experts suggest that the approach Steak ’n Shake has adopted is more aligned with a strategic corporate treasury model rather than mere speculation on cryptocurrency. Vineet Budki, CEO of Sigma Capital, commented on the distinction between businesses that view Bitcoin primarily as a speculative asset and those treating it as a stable store of value akin to “digital gold.” Budki underscored that significant growth in corporate Bitcoin adoption is likely to originate from traditional businesses rather than firms solely focused on cryptocurrencies.
In October 2022, the company had previously introduced a limited-time offering of the Bitcoin Steakburger, a product stamped with the Bitcoin logo, marking its foray into blending traditional food offerings with cryptocurrency branding. The acknowledgment of a $10 million increase in Bitcoin exposure linked to the Strategic Bitcoin Reserve further illustrates the company’s dedication to this financial strategy.
While Steak ’n Shake emerges as a unique outlier in a landscape where overall demand for Bitcoin payments has diminished, the firm’s sustained investment in Bitcoin as part of its operational structure may influence others in the sector. Observers note that the success of Bitcoin payments among larger merchants could pave the way for broader adoption, contingent on improvements to transaction networks like the Lightning Network for enhanced scalability.
As a subsidiary of Biglari Holdings, a publicly traded company, Steak ’n Shake’s ongoing Bitcoin initiatives and financial performance will likely be scrutinized in forthcoming regulatory disclosures, promising to provide critical insights into the evolving dynamics of cryptocurrency in everyday business practice.
