Construction has begun on a Campbell Steak ‘n Shake that, when it opens, will be the burger and shake chain’s first foray into the Bay Area.

Workers began last month renovating a retail pad that was previously home to Tread Bikes and Bradley Video at separate times. The restaurant will take up residence at 501 E. Campbell Ave. in Lloyd Square near the downtown core.

The Midwest burger chain has five locations in Southern California, but none in the northern reaches of the state. Restaurants are in Victorville, Santa Monica, Riverside, Burbank and Aliso Viejo.

Currently, there is a fence around the location and the building’s windows and doors have been removed. The sit-down restaurant will seat 118 customers when complete.

Daniel Leder, the CEO of Cowlick Inc. and franchise rights owner to Steak ‘n Shake locations in the Bay Area, told The Campbell Reporter he hopes to have the location open by the second week of January.

“We’re very excited to serve quality burgers and shakes to the Campbell community,” Leder said, adding that he’s preparing for the Campbell restaurant by training at Midwest and East Coast restaurants.

Steak n’ Shake underwent city review and approval last year after receiving a fair amount of criticism from neighbors of the site. Residents told the city during multiple public meetings that they were concerned the restaurant would bring traffic and noise to their neighborhood. Some residents felt the shopping center did not have enough parking and that residents would park in the neighborhood.

The restaurant faced two appeals from residents who tried to overturn the planning commission’s approval. In October the council denied both appeals and instituted a few requirements for Steak ‘n Shake to quell resident worries over parking.

The restaurant will have to offer VTA passes to employees and pay half the cost of the passes. Bicycle racks will be installed near the restaurant, and one parking spot will be designated for to-go orders and have a 15-minute time limit.

Llyod Square is currently home to the Yoga Studio, and across from Sal’s Pizza, Golden Glow Tanning and Jalisco Mexican Food, Suzie’s Pet Salon and Running Revolution. Okashi Bakery closed this summer, but the business continues on the Internet.