Franchise Failure Rates

SBA 7(a) loan outcomes · FY2010–FY2019 cohort · Statuses as of June 30, 2026 · Last updated August 17, 2026

Steak n Shake Franchise Failure Rate: 21.7% SBA Loan Defaults (2010–2019 Federal Data)

21.7%
charge-off rate on 23 SBA 7(a) loans to Steak n Shake franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Steak n Shake against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Steak n Shake 21.7%; Full-Service Restaurants 9.6%; All franchises 10.2%Steak n Shake 21.7%; Full-Service Restaurants 9.6%; All franchises 10.2%0%5%10%15%20%Steak n Shake21.7%Full-Service Restaurants9.6%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Steak n Shake 21.7%; Full-Service Restaurants 9.6%; All franchises 10.2%Steak n Shake 21.7%; Full-Service Restaurants 9.6%; All franchises 10.2%0%5%10%15%20%Steak n Shake21.7%Full-Service Restaurants9.6%All franchises10.2%

Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026. Figures also in the comparison table below.

About 1 in 5 Steak n Shake SBA borrowers failed to repay — more than double the Full-Service Restaurants average of 9.6%.

Between 2010 and 2019, 23 Steak n Shake franchisees financed with SBA 7(a) loans. 5 defaulted — a 21.7% charge-off rate, 2.3x the Full-Service Restaurants average of 9.6%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Steak n Shake franchise failure rate on SBA loans?

Steak n Shake is a Full-Service Restaurants franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Steak n Shake franchisees: 23 loans approved between fiscal 2010 and 2019, of which 5 were charged off. Loan statuses are as of June 30, 2026, and the cohort has matured, so these are settled outcomes rather than projections.

How does Steak n Shake compare with other Full-Service Restaurants franchises?

The table sets Steak n Shake's charge-off rate beside its Full-Service Restaurants peers and the two economy-wide benchmarks. All figures use the same cohort — SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026 — and the same denominator of resolved loans, so they are directly comparable. A cell in red is more than twice the industry benchmark.

Steak n Shake versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureSteak n ShakeFull-Service RestaurantsAll franchisesAll SBA borrowers
Default (charge-off) rate21.7%9.6%10.2%8.0%
Loans in sample23———
Defaults5———
Average loan size$1,247,270———
Charge-off rate by approval year — share of each fiscal year's Steak n Shake SBA 7(a) loans that later defaulted (FY2010–FY2019); years with fewer than 10 loans are outlined, not filled
Charge-off rate by approval year: FY2010 100% of 1 loans; FY2011 0% of 3 loans; FY2012 0% of 4 loans; FY2013 0% of 4 loans; FY2014 0% of 3 loans; FY2015 100% of 1 loans; FY2016 100% of 3 loans; FY2017 0% of 4 loansCharge-off rate by approval year: FY2010 100% of 1 loans; FY2011 0% of 3 loans; FY2012 0% of 4 loans; FY2013 0% of 4 loans; FY2014 0% of 3 loans; FY2015 100% of 1 loans; FY2016 100% of 3 loans; FY2017 0% of 4 loans0%5%10%100%2010n=10%2011n=30%2012n=40%2013n=40%2014n=3100%2015n=1100%2016n=30%2017n=4
Charge-off rate by approval year: FY2010 100% of 1 loans; FY2011 0% of 3 loans; FY2012 0% of 4 loans; FY2013 0% of 4 loans; FY2014 0% of 3 loans; FY2015 100% of 1 loans; FY2016 100% of 3 loans; FY2017 0% of 4 loansCharge-off rate by approval year: FY2010 100% of 1 loans; FY2011 0% of 3 loans; FY2012 0% of 4 loans; FY2013 0% of 4 loans; FY2014 0% of 3 loans; FY2015 100% of 1 loans; FY2016 100% of 3 loans; FY2017 0% of 4 loans0%5%10%100%’10n=10%’11n=30%’12n=40%’13n=40%’14n=3100%’15n=1100%’16n=30%’17n=4

Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY201011100.0%
FY2011300.0%
FY2012400.0%
FY2013400.0%
FY2014300.0%
FY201511100.0%
FY201633100.0%
FY2017400.0%

How to read this

A charge-off means a franchisee borrowed, operated, and failed severely enough that the SBA wrote off the government-guaranteed loan. Unlike franchisor marketing or Item 19 disclosures, this is an observed outcome recorded by a federal agency. One caveat cuts the other way: SBA borrowers are typically less capitalized than all-cash buyers, so these rates can overstate risk for well-funded operators.

How reliable is this number?

Steak n Shake's figure rests on 23 resolved SBA 7(a) loans approved between fiscal 2010 and 2019 — a matured cohort, so the rate is a settled outcome, not a projection. With 23 resolved loans, one default moves the rate by about 4.3 percentage points. Loans approved since 2020 are excluded from the rate because most are still outstanding; they appear on this page as counts only. Every Steak n Shake figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 23 resolved loans — directional, not precise.

Frequently asked

What is Steak n Shake's franchise failure rate on SBA loans?
Between 2010 and 2019, 23 Steak n Shake franchisees financed with SBA 7(a) loans. 5 defaulted — a 21.7% charge-off rate, 2.3x the Full-Service Restaurants average of 9.6%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Steak n Shake a safe franchise investment?
Between 2010–2019, Steak n Shake franchisees defaulted on SBA loans at 21.7% versus a 9.6% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Steak n Shake franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 21.7% (5 of 23 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/steak-n-shake/ · Data & methodology · Download the dataset (CSV)