Steak ’n Shake’s Crypto Experiment Benches Visa and Turns Fry Cooks Into Vesting HODLers

And just like that… Steak ‘n Shake just became Michael Saylor’s favorite new burger joint in South Beach…

Nine months ago, Steak ’n Shake looked at its grill, looked at its balance sheet, and said, “You know what this needs? A decentralized monetary revolution.” So it started accepting Bitcoin. And now? The burger chain claims its same-store sales have risen “dramatically” ever since.

(Source: CoinDesk)

While most fast-food chains are debating how to steal Chick-Fil-A’s devoted customers with upgraded chicken tenders and employees mysteriously discovering customer service again… Steak ’n Shake decided to plug itself directly into the Lightning Network and see what happens. Well guess what? Apparently… line goes up.

Back in May, Steak ’n Shake flipped the switch and began accepting Bitcoin payments via Lightning. At first, it looked like a quirky marketing stunt. “Haha, cool, internet money burger.”

Except then they kept going. They unveiled a Bitcoin-themed Steakburger stamped with the crypto logo. They started routing every Bitcoin payment into a newly formed Strategic Bitcoin Reserve. They added $10 million in Bitcoin to their treasury. And now they’re sitting on roughly 161 BTC worth about $11 million. Important note: they’re about 26% below their average purchase price of $92,851 per coin. HODL the onions.

(Source: Fold)

Still, the company says same-store sales initially jumped 10%… and now claims they’ve risen “dramatically” over the nine-month stretch. Oh, and COO Dan Edwards says they’re saving roughly 50% on processing fees when customers pay in crypto instead of handing Visa and Mastercard their usual pound of flesh.

So instead of swipe fees going to the merchant kings, the sats go into a Strategic Bitcoin Reserve. And what does that reserve fund? Employee bonuses. Yes, the fry cook is now partially paid in internet gold. Actually kinda smart. The official details are $0.27 in Bitcoin per hour worked, with YUGE caveat… a two-year vesting period. But hey, if it gets the guy running the flattop to stay around longer… that’s good for business right?

Right on schedule, crypto VCs are anointing Steak ’n Shake’s Bitcoin pivot as the blueprint. The Twitter economists insist this is what a “true digital asset treasury model” was always supposed to be.

Don’t forget, Steak ’n Shake is operated by publicly listed Biglari Holdings, which means the receipts will eventually show up in regulatory filings. If this actually moves the needle, other traditional businesses might start hitting control c+v on this model. 

Granted, merchant demand for Bitcoin payments has been sliding industry-wide and Steak ’n Shake looks like an outlier right now. Also, lightning infrastructure still needs to scale. Correct me if I’m wrong, but most people aren’t whipping out a hardware wallet at the drive-thru.

But if a fast-food chain can combine greasy cash flow with a crypto treasury and see sales pop while eliminating fees? Let’s give credit to where credit is due. All my crypto bros said, “let him cook.”

At the time of publishing this article, Stocks.News holds positions in Bitcoin as mentioned in the article.