Judge Orders Denver Steak ‘n Shake Franchisees to Close

A federal judge in Denver ruled late Tuesday that Colorado’s long-awaited first Steak ‘n Shake restaurants – one in Centennial and another in Sheridan – must stop operations immediately, favoring the national chain’s request for a preliminary injunction to shut them down.

The ruling takes effect the moment Steak ‘n Shake files a $50,000 bond with the court, which is expected by Thursday. In the meantime, both restaurants were operating normally Wednesday, offering Steak ‘n Shake menus to customers.

The ruling comes after a four-month fight between the Indianapolis-based publicly traded premium-steakburger company and the Baerns family that operated the two restaurants here. Corporate officials argued that the franchisee family had run afoul of their agreement requiring all branded restaurants to abide by uniform pricing and promotions.

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