Steak n Shake, Inc.

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Benefits of Franchising The benefits of franchising with Steak n Shake can't be duplicated: • Proven Concept - Founded in Normal, Illinois in 1934, the Steak n Shake concept has withstood all types of economic circumstances and continually emerged stronger and stronger.

• Growing - Since 1996, Steak n Shake system-wide sales have grown from $268 million to $532 million. In the past decade, the chain has tripled in size.

• Huge, Untapped Development Potential - Steak n Shake (as of March 18, 2002) operates 397 restaurants in just 19 states. Looking ahead, we forecast that Steak n Shake has the potential to develop over 1,000 units nationwide.

• Unique Niche Positioning - There is no single offering that is a head-on alternative to our restaurant concept. Steak n Shake serves a distinct niche in the mid-scale, casual dining segment of the restaurant industry. Steak n Shake offers full-service dining areas, counter service and drive-thru windows. The food is freshly prepared, cooked to order in view of the guests and served to their tables by friendly wait staff. With an average check of $5.84 per person, Steak n Shake offers a superior value to competing casual dining and family-style concepts. Steak n Shake restaurants are open 24 hours a day, seven days a week, and serve breakfast during breakfast hours.

• Core Products that Generate a Strong Loyal Following - The core of the Steak n Shake menu includes Steakburgers, thin and crispy French Fries, Chili, and Hand-dipped Milk Shakes. It is not unusual to meet a guest at a new restaurant opening that has driven 50+ miles to visit "their closest Steak n Shake." These core products are consistently recognized as "best in class" by consumers.

• World Class Marketing - The Steak n Shake marketing is directed toward building brand loyalty and is not price-driven or reliant on low price discounting. Steak n Shake's television and print marketing are product-benefit directed, showing why Steak n Shake is superior to fast food alternatives with a fun, irreverent, tongue-in-cheek humorous approach. Sample television spots are available on this website for your viewing pleasure. The Marketing System is user-friendly and designed for the success of Franchisees.





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