SHERIDAN, Colo. (CBS4) – The burgers and fries are still being served at two Steak ‘n Shake restaurants in the metro area but might not be for long after a federal judge in Denver has ordered the stores shut down.
The battle between the franchises and the Steak ‘n Shake corporate offices began over menu prices and now a court has sided with the parent company. The Sheridan and Centennial restaurants will soon close under the judge’s order.
The Steak ‘n Shake corporate offices are expected to file a bond with the court and businesses will have to stop immediately.
The federal court ruling is the result of a lawsuit brought on by Steak ‘n Shake corporate offices requesting to shut them down due to a long battle between corporate and the Barnes family, the local franchise owner, who were unavailable for comment.
Corporate says the local stores raised their prices, which is against the franchise agreement.
According to a 42-page court document from the U.S. district judge, the franchises are ordered to immediately stop operations and stop using anything belonging to Steak ‘n Shake enterprises.
“I’m surprised because we like Steak ‘n Shake, we don’t’ have it in San Diego, and we found this place and we went ‘Yay!’ “ a Steak ‘n Shake patron said.
“I think it’s sad and I think they should be allowed to raise their prices for the economy of the area,” another Steak ‘n Shake patron said.
“Well, they were going against corporate, so I think that’s wrong,” Steak ‘n Shake patron said.
A manager at the Steak ‘n Shake in Sheridan says he’s confident the franchise will stay open and hopes he and the 50 other people who work there, and another 50 from the Centennial restaurant, will be able to keep their jobs.