Steak ‘n Shake to Accept Bitcoin at Over 300 Locations in the U.S.
Steak ‘n Shake, a prominent fast-food chain in the United States, is set to begin accepting Bitcoin at all of its U.S. outlets starting May 16. This initiative marks a significant milestone for Bitcoin as a practical currency in everyday transactions. With over 300 locations and more than 100 million customers annually, Steak ‘n Shake is poised to play a vital role in normalizing cryptocurrency usage in the retail sector.
With growing pressure on traditional retailers to modernize their payment options, Steak ‘n Shake’s decision to integrate Bitcoin comes at a crucial time. For a long time, Bitcoin has been viewed primarily as a store of value. However, this collaboration provides an opportunity to showcase its usability, especially in the fast-paced environment of fast food dining, which demands efficiency and reliability.
Profitability Through Speed and Efficiency
Fast-food chains such as Steak ‘n Shake depend heavily on quick service and high volume to maintain profitability. Unlike luxury retail spaces that can afford to explore varied payment options due to higher margins, companies in the fast food industry require cost-effective and dependable systems. This integration of Bitcoin serves as a crucial test, examining how well the cryptocurrency can operate under the pressures of retail.
The announcement about accepting Bitcoin was initiated with a social media post in March, where the company engaged its followers by asking if it should accept cryptocurrency. This post garnered attention from notable personalities, including former Twitter CEO Jack Dorsey. In the following weeks, Steak ‘n Shake ramped up its crypto-themed marketing, even referencing Elon Musk’s ambitions for Mars and the advocacy for Bitcoin by Robert F. Kennedy Jr.
Previous Attempts to Accept Cryptocurrency
Steak ‘n Shake’s upcoming rollout stands in contrast to previous, more restricted trials conducted by other fast-food chains. For instance, Starbucks allowed Bitcoin wallet top-ups in 2021 through the Bakkt app, but these transactions were automatically converted to U.S. dollars before payment. Similarly, Chipotle accepted over 90 cryptocurrencies in 2022, including Bitcoin, using Flexa’s payment platform, which also involved fiat conversion.
In 2013, Subway was a pioneer among fast food chains in testing Bitcoin payments at select franchises. Although there were some attempts to revive this initiative in crypto-friendly cities, it never achieved a nationwide rollout.
Global Perspectives on Cryptocurrency in Food Retail
Outside the U.S., the adoption of cryptocurrencies in food retail has been largely influenced by local economic conditions. In Venezuela, Burger King briefly accepted Bitcoin and other digital currencies in 2020 via a partnership with Cryptobuyer, although this move was short-lived and limited in scope.
Conversely, El Salvador took a significant step in 2021 by declaring Bitcoin as legal tender. Major brands such as Pizza Hut and Starbucks quickly embraced cryptocurrency payments in the country. However, despite initial enthusiasm, actual usage has been relatively low, hampered by infrastructure issues and varying consumer experiences.
Will Bitcoin Be Processed Natively or Converted?
As of now, Steak ‘n Shake has not publicly confirmed whether it will process Bitcoin transactions natively or if it will convert them to fiat currency at the point of sale. Previous integrations in the retail sector have predominantly favored instant conversion to mitigate volatility risks.
This decision could play a crucial role in determining whether this initiative represents genuine adoption of on-chain transactions or just another stopgap solution. A successful implementation might inspire other national chains to reconsider their stance on cryptocurrency payments, while a failed endeavor could reinforce skepticism regarding Bitcoin’s viability in everyday transactions.
In summary, the impending acceptance of Bitcoin by Steak ‘n Shake could bring about transformative changes in the fast food industry. By testing Bitcoin’s functionality in a fast-paced environment, the company is setting the stage for potential broader acceptance of cryptocurrency in mainstream commerce.
