Why is Des Moines so crazy about Steak 'n Shake?

Steak 'n Shake, in all its vintage glory, is planning on building a store in the Des Moines metro, bringing with it sky-high stacked patties, milkshake happy hours and a dreamy "Grease"-vibe.

The restaurant may come to West Des Moines off Interstate 35 and Mills Civic Parkway and initial plans call for a drive thru and possible 24-hour service.

On social media, people are raving (and questioning) the excitement behind the restaurant known for its steak burgers and hand-dipped milkshakes, meaning they're made with scooped ice cream and a blender, rather than a shake machine.

But when Des Moines diners already have a plethora of burger options, including B-Bop's, Zombie Burger, Five Guys and now Wahlburger's, why are people screaming at the internet over this latest announcement?

Restaurant analysts predict the arrival of the coveted chain is welcome news for a variety of reasons, including price, Midwest pride, convenience and a shift in what people are looking for in restaurants.

Let's get to the heart of why people are so hyped for the chain's artery-clogging cuisine.

A price point

More people, particularly younger generations, are increasingly eating food from restaurants rather than cooking at home, said Jessica Dunker, CEO of the Iowa Restaurant Association.

In a survey from the National Restaurant Association, in 1955, about 25 cents of every dollar spent on food went to restaurants. That’s nearly doubled to 48 cents now.

But with more people going out to eat, there’s a need for more variety, including with price points.

"You’re not going to double just eating at sit-down restaurants," Dunker said. "You have to have dine-in and carry-out."

People will always be looking for value in the food they purchase, said Danny Bendas, a consultant with Synergy Restaurant based out of California.

Consumers evaluate their food value in different ways.

For example, while Steak 'n Shake may not be the same quality as Shake Shack or Five Guys, the prices are cheaper and there’s a wider variety of items to choose from.

"Steak 'n Shake's goal is to be more price-value oriented," Bendas said. 

The menu touts a wide variety of meals for $4 or less, including burgers and fries, "chili mac" and patty melt meals.

Other food chains are also sticking with the low-price value. Applebee's drew attention when it announced $1 margaritas. Wendy's is marketing its four for $4 menu. McDonald's expanded its $1 menu to include $2 and $3 menus.

"Millennials are an interesting crowd because they want locally sourced, low-cost food and they want to pay minimum price for it," Dunker said. "But they’re willing to pay quite a bit of money for quality beer and cocktails. We have to try to figure out how we can make money on the food as well."

Growth of 'fast casual' restaurants and convenience

Nationally, take out and delivery orders are on the rise as people dine in the convenience of their homes, Dunker said.

Limited-service restaurants, which lack table service, like Chipotle and Noodles & Company are expected to grow 5.3 percent by next year, according to the National Restaurant Association. Typical dine-in restaurants are expecting 1 percent growth.

Steak 'n Shake is a hybrid of both of these styles, where people can quickly get their food from a drive thru or to go or they can sit down and have a meal with table service.

In a survey of young adults, an increasing number said they wanted to stream movies at home, drink craft beers and eat something from a restaurant, Dunker said.

Third-party deliver options like Uber Eats make this option possible. But in Iowa and Des Moines, restaurants are more wary of these services because it leaves the quality of the food up to the delivery service, Dunker said. 

To-go orders, though, are expected to increase as people look to quickly get in and out.

“There’s almost no restaurant someone would pause and call about asking to pack to go,” Dunker said.

There’s change in what Iowans (and the nation) want from restaurants

A study on consumer and food spending shows that 60 percent of people would prefer to buy an experience rather than a material object.

That number is even higher for millennials, where 73 percent young adults would prefer to purchase experiences, like going out to eat, renting bicycles or visiting a new town, according to a study by Harris Group, an engineering firm.

Restaurant concepts are latching on to this idea of providing something beyond a meal, Dunker said.

Steak 'n Shake provides an “experience” with its 1950s aesthetic and an open kitchen layout, Dunker said. Waiters and waitresses don retro bow ties to complete the look.

“That experience plays well to the desire of people to experience nostalgia in addition to the experience of the food,” Dunker said. “That’s why I think it’s captured the interest and excitement of people.”

Midwest pride

Steak 'n Shake was established in Illinois in 1934 and has stuck with its Midwest roots.

For traveling Iowans or transplants to the state, the restaurant holds a nostalgic factor that other chains can’t recreate.

“The excitement is that Steak 'n Shake is a very old brand,” Bendas said.

More people are seeking individualized foods, and items like hamburgers are easy to customize, Dunker said. They can be smothered in ketchup, include vegetables or have odd toppings. With a wide menu, people can order plain fries, spicy Cajun seasoning or get them smothered in cheese.

“I think they check all their boxes,” Dunker said. “People can’t get enough burgers. It is a staple of American and particularly Midwest diets. There’s so many ways you can do it.”