Steak n Shake introduces Franchise Development Opportunities in Freestanding and Non-traditional Locations The Steak n Shake Company

About Steak n Shake 75 years in business! In 1934, Gus Belt converted an old gas station/chicken restaurant into a hamburger stand and called it Steak n Shake Today, Steak n Shake remains America’s leader in premium Steakburgers and milk shakes We’ve withstood the test of time

75 years in business!

In 1934, Gus Belt converted an old gas station/chicken restaurant into a hamburger stand and called it Steak n Shake

Today, Steak n Shake remains America’s leader in premium Steakburgers and milk shakes

We’ve withstood the test of time

Our vision Steak n Shake is a classic American brand, and we intend to lead and dominate the premium burger and milk shake segment of the restaurant industry.

Steak n Shake is a classic American brand, and we intend to lead and dominate the premium burger and milk shake segment of the restaurant industry.

Constantly to serve our patrons the highest quality burgers and shakes along with extending them great service at the lowest possible prices. Our mission

Constantly to serve our patrons the highest quality burgers and shakes along with extending them great service at the lowest possible prices.

Leadership Sardar Biglari Mr. Biglari is Owner/CEO of The Steak n Shake Company Became Chairman and CEO in 2008 Steak n Shake stock trades on the NYSE, under the symbol “SNS” Mr. Biglari and Steak n Shake board members at the New York Stock Exchange, August 13, 2009.

Sardar Biglari

Mr. Biglari is Owner/CEO of The Steak n Shake Company

Became Chairman and CEO in 2008

Steak n Shake stock trades on the NYSE, under the symbol “SNS”

Our signature items Steakburger™ sandwich Quality beef Prepared to order Very hot grill Crispy edges Milk shakes Hand-dipped Premium ice cream Real milk

Steakburger™ sandwich

Quality beef

Prepared to order

Very hot grill

Crispy edges

Milk shakes

Hand-dipped

Premium ice cream

Real milk

How many Steak n Shakes operate today? Nearly 500 Steak n Shake restaurants In 21 states Over 80% are company stores The remainder are owned by franchisees

Nearly 500 Steak n Shake restaurants

In 21 states

Over 80% are company stores

The remainder are owned by franchisees

Dining out is big business in the U. S. In 2,000, over 831,000 restaurants Three out of five meals are eaten away from home Restaurants C-Stores School lunch programs Vending machines 45% of the family food dollar is spent dining out 1990 - $239 billion 2000 - $376 billion 2010 - $577 billion (forecast) Source: National Restaurant Association report, 5/02/2000

In 2,000, over 831,000 restaurants

Three out of five meals are eaten away from home

Restaurants

C-Stores

School lunch programs

Vending machines

45% of the family food dollar is spent dining out

1990 - $239 billion

2000 - $376 billion

2010 - $577 billion (forecast)

Source: National Restaurant Association report, 5/02/2000

1,095 meal occasions annually (based on 3 meals per day x 365 days) Source: The NPD Group’s Crest Service at 5/09 Meals purchased in restaurants each year It’s big business! Nearly one out of every five meals is eaten in restaurants.

Fiercely loyal customer base demands more Steak n Shakes “ PLEASE, PLEASE, PLEASE come to Richmond, VA! I am a Georgia girl who moved here six years ago and I still get cravings for a chocolate milkshake and a Frisco melt with cheese fries! I know so many people who also love Steak n Shake and wish there was one here!” Stephanie Walker, Richmond VA (9/27/09) “ We would really love a Steak 'N Shake in Des Moines, Iowa! Are there plans to bring one here?” Lori Schultz, Des Moines, IA (9/27/09) “ Will you be expanding in South Carolina? I work at the Welcome Center in Blacksburg and get many travelers looking for Steak n Shake. There is only one on I-85, in Greenville. The other two are in Myrtle Beach and Rock Hill. I have eaten at Steak n Shake in Rock Hill and love it.” Nathan White, Blacksburg, SC (9/29/09) “ I grew up in St Louis and love Steak n Shake. We moved to Denver and I miss Steak n Shake. Every time I go back home, I eat at Steak n Shake at least a couple of times. And I stop at the one in Kansas when driving to Missouri and returning to Colorado. Are there any plans to put a Steak n Shake in Denver?” Margaret Wiley, Highlands Ranch, CO (9/29/09) “ We need Steak 'n Shake here in St. Joseph, MO! I grew up on Steak 'n Shake in St. Louis and miss it terribly! Will you be coming to St. Joe in the near future? Cindy Nicks, St. Joseph, MO (9/30/09) “ PLEASE open at least one store here in Minnesota, preferably multiple ones around Minneapolis/St. Paul!!!!” Jevin Pinske, Roseville, MN (9/30/09)

“ PLEASE, PLEASE, PLEASE come to Richmond, VA! I am a Georgia girl who moved here six years ago and I still get cravings for a chocolate milkshake and a Frisco melt with cheese fries! I know so many people who also love Steak n Shake and wish there was one here!” Stephanie Walker, Richmond VA (9/27/09)

“ We would really love a Steak 'N Shake in Des Moines, Iowa! Are there plans to bring one here?” Lori Schultz, Des Moines, IA (9/27/09)

“ Will you be expanding in South Carolina? I work at the Welcome Center in Blacksburg and get many travelers looking for Steak n Shake. There is only one on I-85, in Greenville. The other two are in Myrtle Beach and Rock Hill. I have eaten at Steak n Shake in Rock Hill and love it.” Nathan White, Blacksburg, SC (9/29/09)

“ I grew up in St Louis and love Steak n Shake. We moved to Denver and I miss Steak n Shake. Every time I go back home, I eat at Steak n Shake at least a couple of times. And I stop at the one in Kansas when driving to Missouri and returning to Colorado. Are there any plans to put a Steak n Shake in Denver?” Margaret Wiley, Highlands Ranch, CO (9/29/09)

“ We need Steak 'n Shake here in St. Joseph, MO! I grew up on Steak 'n Shake in St. Louis and miss it terribly! Will you be coming to St. Joe in the near future? Cindy Nicks, St. Joseph, MO (9/30/09)

“ PLEASE open at least one store here in Minnesota, preferably multiple ones around Minneapolis/St. Paul!!!!” Jevin Pinske, Roseville, MN (9/30/09)

We seek quality franchise owners and operators Multi-unit developers Build a hospitality portfolio Exclusive development territory Develop over several years Single unit franchisees Prime real estate sites Locate on "restaurant row" Own and operate locally Franchise growth initiative

We seek quality franchise owners and operators

Multi-unit developers

Build a hospitality portfolio

Exclusive development territory

Develop over several years

Single unit franchisees

Prime real estate sites

Locate on "restaurant row"

Own and operate locally

What are the most important attributes for successful Steak n Shake owners? Financial requirements: Liquidity of at least $400,000 Net worth of at least $1.5 million (excluding primary residence) Multi-unit developers require significantly more financial strength The financial partner is not required to have restaurant experience Attitude and skills needed Positive attitude Good “people skills" Hospitality Experienced operating partner with some equity in the enterprise

Financial requirements:

Liquidity of at least $400,000

Net worth of at least $1.5 million (excluding primary residence)

Multi-unit developers require significantly more financial strength

The financial partner is not required to have restaurant experience

Attitude and skills needed

Positive attitude

Good “people skills"

Hospitality

Experienced operating partner with some equity in the enterprise

Building flexibility We offer three footprints Freestanding with drive thru End caps Non-traditional: Airports, food courts and in-line locations End cap In-line and non-traditional space Freestanding

We offer three footprints

Freestanding with drive thru

End caps

Non-traditional: Airports, food courts and in-line locations

Freestanding and Endcap designs Freestanding restaurants are 3,200 to 4,000 square feet, full-service, sit down businesses offering three day parts and a drive-thru component. Endcap units in power strip malls or lifestyle centers are “express” formats Modified self-service window for food ordering and pick up Limited seating No tableside service Drive-thru optional Freestanding End cap

Freestanding restaurants are 3,200 to 4,000 square feet, full-service, sit down businesses offering three day parts and a drive-thru component.

Endcap units in power strip malls or lifestyle centers are “express” formats

Modified self-service window for food ordering and pick up

Limited seating

No tableside service

Drive-thru optional

In-line units designed for high volume in much smaller space Airports Downtown locations Food courts in regional malls Stadium and campus venues A guest ordering/food pick up window replaces waitress service Limited seating on the premises. Designed for people “on the go.” Non-traditional formats Airports, in-line and non-traditional space Service window

In-line units designed for high volume in much smaller space

Airports

Downtown locations

Food courts in regional malls

Stadium and campus venues

A guest ordering/food pick up window replaces waitress service

Limited seating on the premises.

Designed for people “on the go.”

Non-traditional elevations

Airport or non-traditional footprint

3,200 s.f. freestanding development cost estimate: The Franchise Disclosure Document contains more financial information. DISCLAIMER: This is an estimate only. Your actual costs will depend on the condition of the site, local material costs, availability of labor and many other factors. Cost to develop a Steak n Shake $30,000 - $40,000 INITIAL FRANCHISE FEE $1,069,150 GRAND TOTAL (excluding cost of land) $50,300 5-YEAR EQUIPMENT $350,750 10-YEAR EQUIPMENT $405,000 BUILDING (at $127/s.f.) $4,000 PERMITS AND FEES $259,000 LAND IMPROVEMENTS

Non-traditional build out costs Initial franchise fee: $30,000 to $40,000 Construction costs: $60/s.f., i.e. 2,000 s.f. x $60 = $120,000 Equipment: $300,000 (can often be leased, rather than bought) Signage: $4,000 to $6,000 Cost of land, permits and building construction is borne by the developer and is reflected in your rent. In certain situations, the landlord may do some of the work needed to make the space tenable for your use, i.e. restrooms, roof penetrations, electrical or plumbing modifications, HVAC upgrades, floor treatments and so forth. A period of free rent and additional “tenant improvement dollars” from the landlord should be explored during lease negotiations. Endcap or in-line development cost estimate:

Initial franchise fee: $30,000 to $40,000

Construction costs: $60/s.f., i.e. 2,000 s.f. x $60 = $120,000

Equipment: $300,000 (can often be leased, rather than bought)

Signage: $4,000 to $6,000

Cost of land, permits and building construction is borne by the developer and is reflected in your rent. In certain situations, the landlord may do some of the work needed to make the space tenable for your use, i.e. restrooms, roof penetrations, electrical or plumbing modifications, HVAC upgrades, floor treatments and so forth.

A period of free rent and additional “tenant improvement dollars” from the landlord should be explored during lease negotiations.

Franchise opportunities And we seek qualified franchisees in new territories We dominate in our core markets Strong brand identity Dense penetration Fierce guest loyalty Distribution network Marketing Franchise support New York Boston Washington, DC New Orleans Minneapolis Denver Salt Lake City Phoenix California Pacific Northwest

And we seek qualified franchisees in new territories

We dominate in our core markets

Strong brand identity

Dense penetration

Fierce guest loyalty

Distribution network

Marketing

Franchise support

Restaurant density in 2009 More than 60 More than 30 More than 10 1 to 9 units

What Steak n Shake provides Quality Value creation for all constituencies Best practices Management training Training programs for hourly team Equipment and facility standards Operating efficiencies Cost-savings where possible System growth with quality franchisees

Quality

Value creation for all constituencies

Best practices

Management training

Training programs for hourly team

Equipment and facility standards

Operating efficiencies

Cost-savings where possible

System growth with quality franchisees

Franchisees can expect ample support Prototypical plans Manager training Training materials for staff Operating Standards Manual Equipment specifications and sourcing Purchasing and distribution support Training assistance at new store openings Management development and certification programs Advertising & marketing support, ad co-ops and related Manager of Field Operations assigned to your restaurant Product development and standard menu updates Periodic store visits

Prototypical plans

Manager training

Training materials for staff

Operating Standards Manual

Equipment specifications and sourcing

Purchasing and distribution support

Training assistance at new store openings

Management development and certification programs

Advertising & marketing support, ad co-ops and related

Manager of Field Operations assigned to your restaurant

Product development and standard menu updates

Periodic store visits

When can I open my Steak n Shake? Best case – 4 to 8 months, depending on site preparation and availability Typical – 9 to 12 months Site Selection Criteria Guide contains more detailed information

Best case – 4 to 8 months, depending on site preparation and availability

Typical – 9 to 12 months

Site Selection Criteria Guide contains more detailed information

Franchise information Kim Andereck, Vice President of Franchise Sales The Steak n Shake Company Email: [email_address] Website: www.steaknshake.com (317) 656-4492