Steak 'n Shake closes in Waynesboro

Laura Peters | The News Leader

WAYNESBORO - Steak 'n Shake first announced it was coming to Waynesboro two years ago.

Now, after just over a year of being open, the fast food chain has closed its franchise operation in Waynesboro Town Center.

"Thank you for your patronage," a sign read on the door of the restaurant. "This location is closed. Please visit us at our Roanoke location."

But, there's another sign hanging from the top of the building which reads "closed for remodeling."

Steak ‘n Shake was founded in February, 1934 in Normal, Illinois by Gus Belt, the restaurant's website said. The franchise serves up burgers, fries and milkshakes. The word “steak” stood for company's steakburger and the term “shake” stood for hand-dipped milkshakes, its website said.

There are more than 550 Steak 'n Shake restaurants in 28 states, the website said. Virginia has locations in Roanoke, Lynchburg, Fredericksburg, Virginia Beach, Richmond, Hampton, Norfolk and Petersburg. The restaurant offered lunch and dinner and included other food specialities like sandwiches and chili.

The Waynesboro location was operated by Steaks of Virginia, a franchise out of Virginia Beach, according to city officials.

According to an article from Restaurant Business, Steaks of Virginia filed a lawsuit in April against the restaurant, claiming it was losing money at all nine of its locations. Steak ‘n Shake’s pricing strategy means the franchisor dictates how much operators can charge no matter where the restaurant is located, the article said.

Sales, traffic and profits were down for the entire chain, the article said.

"For franchisees that operate 173 of the 585 U.S. locations and have to pay for royalties on top of other costs, the traffic declines risk sending many locations into financial losses," the article stated. "In addition, rising minimum wages in many markets, along with competition for labor, could put further pressure on that profitability."

This location was also different than others around the country.

It had a different ordering set-up: You place your order, they give you a number sign and then you wait for pick-up. That set-up was different than its other location that offered more of a diner atmosphere.

And some menu items were not available at the Waynesboro location. The Waynesboro location operated on the "counter menu," its website said.

As for what will go in that location, it's been rumored a Taco Bell might be headed there. Originally, that store was going to be a two-storefront restaurant (think A&W and Long John Silver's in Staunton), which would have featured a Taco Bell. But, in the early stages of construction, that plan was scrapped.

If that's the case, site plans would need to be sent to the city for approval. As of now, nothing has been seen, sent or approved.

"We haven’t heard a word about it much less received any applications for alterations or anything else," Laura Martin, zoning administrator for the City of Waynesboro.

More: Blue Oregano's new bakery; Redbeard anniversary; WNRN gets space a Hub — The buzz

More: Shenandoah LGBTQ Center opens in Staunton

More: Waynesboro deputy fire marshal could take over some responsibilities from the police department

Follow Laura Peters @peterslaura and @peterpants. You can reach her at lpeters@newsleader.com or 213-9125.