Operating a Steak ‘n Shake franchise offers a unique blend of fast food service with diner-style charm—but it also introduces a specific set of operational and liability risks. Whether you’re a long-time operator or exploring your first unit, being aware of the most common property and casualty exposures is crucial to protecting your investment and ensuring the long-term success of your location.
At Brier Grieves Insurance, we specialize in working with Steak ‘n Shake franchisees across the country. Here are the top five risks we see most often—and how to proactively manage them.
1. Kitchen Fires: A Real Risk in a High-Volume Griddle Environment
The Risk: Steak ‘n Shake’s signature steakburgers, cooked on open griddles, combined with round-the-clock operations, increase the risk of grease buildup and overheating equipment. A fire not only disrupts service—it can severely damage brand reputation and lead to significant losses.
How to Protect Your Franchise:
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Ensure your Ansul fire suppression system is serviced bi-annually, as required.
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Clean griddles, fryers, and exhaust systems daily, especially during extended operating hours.
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Conduct regular fire drills and staff training, especially for overnight crews.
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Review your property insurance to ensure it includes full fire damage restoration and loss-of-income coverage.
2. Slip-and-Fall Accidents: Dining Room and Drive-Thru Hazards
The Risk: Frequent milkshake spills, high-traffic restrooms, and slick floors in both the dining room and drive-thru areas create frequent opportunities for accidents. One customer slip can lead to a costly liability claim.
How to Protect Your Franchise:
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Use branded floor mats in high-risk zones and rotate them frequently.
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Train team members on hourly floor checks and documentation protocols.
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Ensure wet floor signs are always accessible—especially during rush hours.
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Carry a robust general liability insurance policy with strong bodily injury coverage.
3. Equipment Breakdown: The Real Cost of a Broken Shake Machine
The Risk: From your multi-mix shake machines and fryers to your walk-in cooler, downtime due to equipment failure can cripple service during peak hours and lead to food waste or health code violations.
How to Protect Your Franchise:
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Enroll in a preventive maintenance plan for all mission-critical kitchen gear.
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Log service dates and inspections to stay ahead of manufacturer warranties.
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Consider equipment breakdown coverage that includes both repair and business interruption protection.
4. Drive-Thru Incidents: Tight Turns, Busy Lanes, Real Risks
The Risk: Steak ‘n Shake’s double-lane drive-thru systems help drive revenue—but they also pose liability challenges. Tight corners, distracted drivers, and nighttime visibility issues can lead to vehicle damage or pedestrian injury.
How to Protect Your Franchise:
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Use reflective signage and traffic cones to guide customer flow.
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Install security cameras to document incidents and deter fraudulent claims.
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Train staff to handle drive-thru accidents calmly and gather proper documentation.
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Maintain premises liability insurance that specifically includes vehicle-related incidents.
5. Employee Injuries: The 24/7 Staffing Challenge
The Risk: The fast pace and long hours at Steak ‘n Shake create a physically demanding environment. From hot grill burns to slips in the dishwashing station, injuries can happen quickly—especially during overnight shifts with fewer managers on site.
How to Protect Your Franchise:
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Incorporate OSHA-compliant training during onboarding and annual refreshers.
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Supply anti-slip shoes and back support gear for kitchen and janitorial staff.
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Conduct monthly safety walkthroughs and document findings.
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Keep your workers’ compensation policy up to date and ensure it meets state guidelines.
Final Thoughts: Protecting the Steak ‘n Shake Legacy
Steak ‘n Shake has built a brand on tradition, consistency, and a great burger at a fair price. As a franchise owner, you’re entrusted with maintaining that legacy—while also protecting your team, your customers, and your bottom line.
At Brier Grieves Insurance, we understand the unique operational risks of Steak ‘n Shake locations. We work with franchisees nationwide to tailor property & casualty insurance programs that offer peace of mind and ensure you’re covered when the unexpected happens.
Let us help you keep the sizzle without the risk.
