Why Did Steak ‘n Shake Discontinue Their Chicken Tenders? An In-Depth Analysis

Steak ‘n Shake’s decision to remove chicken tenders from their menu sparked confusion and disappointment among loyal customers. As a classic American fast food chain known for its burgers, fries, and milkshakes, Steak ‘n Shake had cultivated a beloved following. The crispy, juicy chicken tenders had become a menu staple for many. Their sudden discontinuation left people wondering: what happened?

This essay will look at the possible reasons behind Steak ‘n Shake’s controversial choice and how it has affected the business and its customers.

The Backstory: Challenging Times for Steak ‘n Shake

Before you can understand why the chicken tenders were taken away, it helps to look at the bigger picture. In the late 2010s, Steak ‘n Shake had a rough time. Sales were going down, debt was growing, and costs were going up. This caused the parent company, Biglari Holdings, to start major restructuring efforts that were meant to fix things.

As part of the restructuring, menu options were streamlined and made easier to find. The goal was to make the kitchen run more smoothly, cut costs, and strengthen Steak ‘n Shake’s core brand identity. But chicken tenders didn’t fit with that brand like burgers and shakes did.

The Strategy Behind Cutting Chicken Tenders

The decision to cut chicken tenders aligned with a strategic shift to focus on core menu items. Specifically, it aimed to:

• Improve efficiency – Fewer menu items means faster prep and service

• Reduce waste – Less food waste with a more limited ingredient selection.

• Lower costs – From streamlined inventory/supply chain management

• Enhance brand focus – Reinforce their reputation as a burger and shake shop.

Basically, it came down to the idea that “less is more”—that cutting back on the menu would help deal with rising costs and problems running the business. Even though customers didn’t like it, it was probably seen as necessary for the business to stay alive.

Wider Menu Cuts Beyond Just Chicken Tenders

And it wasn’t only chicken tenders that got cut. Steak ‘n Shake trimmed down the menu substantially:

• Specialty burgers like BBQ and bacon ranch were nixed.

• Many side dishes were removed, like baked beans and mac & cheese.

• Some milkshake flavors got axed, like banana and mint.

The smaller menu resulted in a simpler operation though at the cost of reduced customer choice. For chicken tender lovers especially, it stung to see that item specifically cut when few alternatives remained.

Mixed Customer Reactions: Disappointment but Some Understanding

As expected, the disappearance of the chicken tenders generated significant backlash and negative sentiment on social media. Many customers expressed frustration and pledged to take their business elsewhere.

However, some loyal fans showed empathy for the company’s situation and willingness to accept the change if it helped keep Steak ‘n Shake afloat. There was a sense that the chain was struggling, so difficult decisions had to be made.

Seizing the Opportunity: Competitors Jump In

Steak ‘n Shake’s loss became competitors’ gain. Chains like McDonald’s, Wendy’s, Burger King and Chick-fil-A seized the chance to entice disappointed customers and promote their own chicken tender options.

Targeted social media ads and in-store promotions rubbed salt in the wound for Steak ‘n Shake. Losing customers to rivals made rebuilding market share even more of an uphill battle.

Behind the Scenes: Supply Chain Issues a Factor Too?

While menu streamlining was the primary driver, some speculate supply chain disruptions may have also influenced the chicken tender cut. From shortages to cost inflation, supply issues plagued the food industry during the pandemic.

Limited availability of key ingredients or pressure to keep prices low could have made chicken tenders less viable. But concrete evidence for supply chain impact is lacking.

Financial Impacts: Hard to Quantify but Brand Image a Concern

The tangible financial impact of dropping chicken tenders is difficult to quantify based on available data. But the bigger issue may be damage to brand image and customer perception.

Negative sentiment and loss of patronage to competitors are definite threats to sales and revenue over the long-term. How much direct impact the chicken tender cut has had on Steak ‘n Shake’s bottom line remains unknown.

Long-Term Outlook: Challenges Remain but Signs of Hope Too

Despite the controversial menu changes, the future isn’t all bleak for Steak ‘n Shake. Parent company Biglari Holdings expresses commitment to reviving the brand’s legacy.

New corporate leadership, restaurant redesigns, and updated technology systems showpromise in improving efficiency and experience. However, stiff competition and lingering customer discontent continue to present hurdles. The path to prosperity won’t be easy.

Will Chicken Tenders Ever Return? Don’t Get Your Hopes Up

As for a potential chicken tender comeback, the odds look extremely slim. Their removal was central to the menu simplification strategy, so bringing them back would seem counterproductive.

Of course, never say never – consumer demand has brought back retired menu items before. But Steak ‘n Shake shows no hints of wavering on their streamlined approach. For now, chicken tender fans will have to look elsewhere.

The Takeaway: Complex Causes, Difficult Decisions

Steak ‘n Shake’s chicken tender discontinuation exemplifies the delicate balancing act of running a restaurant chain. Menu changes that make sense for a company’s bottom line can alienate loyal patrons. There are often no easy answers, but brands must adapt to survive.

For customers, it’s a reminder that our favorite items aren’t guaranteed forever. But in the end, we vote with our dollars. So if we want chicken tenders at Steak ‘n Shake, we’ll have to convince them it’s a sound business decision.