Steak ‘n Shake has announced a significant change to its payment options: from May 16, customers will be able to use Bitcoin to pay for their meals at all of the chain’s locations across the United States. This marks a major step forward for the fast food industry, as the chain embraces cryptocurrency as a payment method, something not commonly seen at such a large scale. Let’s explore the details of this development, the reactions it has stirred, and what it could mean for the broader cryptocurrency adoption in the U.S.

The Big Reveal and the Build-Up

The news that Steak ‘n Shake would begin accepting Bitcoin was confirmed through a tweet on May 9. The company shared a message stating, “Steak n Shake accepting Bitcoin payments at all locations starting May 16, bringing the cryptocurrency to our 100+ million customers. This movement is just beginning… – Steaktoshi”. The tweet garnered immediate attention, especially after the company had been hinting at the idea for months. In March, Steak ‘n Shake posted a tweet asking, “Should Steak n Shake accept Bitcoin?”, which sparked massive interest and even garnered a supportive reply from Bitcoin advocate Jack Dorsey. Teaser images, including a rocket themed with Bitcoin’s colors, further fueled speculation, making the announcement even more highly anticipated.

Why the buzz? The timing couldn’t have been better. Bitcoin had just surged back above the $100,000 mark per coin, making headlines once again. With the cryptocurrency’s recent rise, Steak ‘n Shake saw an opportunity to capitalize on the trend. Moreover, the brand has been keen to stay relevant to various subcultures — whether it’s by appealing to health-conscious customers with its focus on beef tallow or targeting tech enthusiasts. The move to accept Bitcoin fits neatly into this strategy, positioning Steak ‘n Shake as a forward-thinking brand. The message “The movement is just beginning…” signals that the company plans to take this initiative even further, with future expansions possibly in mind.

How Bitcoin Payments Will Work

One question remains: how will Bitcoin payments function in the restaurant? While specifics haven’t been fully revealed, it’s likely that Steak ‘n Shake will partner with crypto payment companies like BitPay or Coinbase Commerce to handle Bitcoin transactions. These services instantly convert Bitcoin into U.S. dollars, allowing businesses to avoid the volatility associated with holding cryptocurrency. It’s expected that customers will be able to scan a QR code with their Bitcoin wallet to complete their payments.

Another important detail to figure out is whether Steak ‘n Shake will use Bitcoin’s main blockchain or a secondary network like the Lightning Network. The Lightning Network allows for faster and cheaper transactions, which would be beneficial for a fast-food environment where speed is critical. Although there’s no official word yet, many believe this would be the ideal solution for ensuring that Bitcoin payments don’t slow down service.

Another key question is whether Steak ‘n Shake will choose to keep the Bitcoin it receives (“HODL”) or convert it immediately into dollars. This decision could have significant financial implications. Holding onto Bitcoin could result in future gains if the cryptocurrency appreciates, but it also exposes the business to the risk of price volatility. On the other hand, converting Bitcoin to dollars right away would reduce that risk but turn the transaction into a simple crypto-to-fiat exchange, essentially treating Bitcoin like any other payment method.

Reactions from Customers and the Crypto Community

The response from the cryptocurrency community has been overwhelmingly positive. Bitcoin enthusiasts are excited about a major chain like Steak ‘n Shake integrating the currency into their payment system. This is seen as a major winfor Bitcoin and a sign that the cryptocurrency is becoming increasingly accepted in everyday life. Headlines in crypto media outlets such as Bitcoin Magazine have hailed this as a “key moment” in the broader adoption of digital currencies.

For customers outside the crypto community, reactions are a bit more mixed. Some are intrigued by the opportunity to spend their Bitcoin at a restaurant, while others question why they should use it for a meal when they could hold onto it as an investment. Bitcoin holders often prefer to keep their coins, hoping for future price growth, rather than spend them on everyday items. In contrast, Bitcoin advocates argue that using cryptocurrency for purchases is part of the reason it exists in the first place, helping it become more mainstream.

Industry analysts have praised Steak ‘n Shake for making a bold move but are cautious about its long-term impact. While the announcement is likely to generate media attention and attract crypto enthusiasts, the actual volume of Bitcoin transactions will likely remain low at first. Many analysts believe that even if 100% of locations accept Bitcoin, only a small percentage of transactions will be made with cryptocurrency initially. However, this share may grow as Bitcoin becomes more stable and if Steak ‘n Shake introduces rewards or promotions to encourage adoption. The company seems optimistic about the future, with plans to expand Bitcoin payments to international locations. This suggests that Steak ‘n Shake is confident in the potential success of this initiative, but it remains to be seen whether it will gain traction with everyday customers.

Bitcoin Acceptance Across the U.S.

Steak ‘n Shake isn’t the first chain to experiment with cryptocurrency payments in the U.S. Back in 2022, Chipotlebegan accepting several cryptocurrencies, including Bitcoin, through a partnership with Flexa, a crypto payment network . This allows customers to pay with their digital wallets by scanning a QR code, with Flexa handling the conversion to dollars. Similarly, Starbucks also allows customers to load their cards with Bitcoin via the Bakkt app, which then converts the Bitcoin to dollars.

Other companies, including Subway, KFC Canada, and Burger King, have also experimented with Bitcoin payments at select locations, though these implementations have been limited. McDonald’s has even started accepting Bitcoin in Lugano, Switzerland, after the city adopted it as legal tender, and Pizza Hut in El Salvador was quick to follow suit when the country passed Bitcoin legislation . While Bitcoin acceptance is expanding across the U.S. in sectors like entertainment and retail, its use in the fast-food sector remains limited.

What sets Steak ‘n Shake apart is its decision to offer Bitcoin payments nationwide. While other chains have tested crypto payments in just a few locations, Steak ‘n Shake is taking a more comprehensive approach, making it one of the first major fast-food chains to offer cryptocurrency payments at all its locations . If successful, the company’s move could encourage others in the industry to follow suit.

The Challenges of a Bitcoin Revolution

While Steak ‘n Shake’s announcement has generated excitement, there are still several challenges to overcome. One of the biggest hurdles is the volatility of Bitcoin. The value of the cryptocurrency can fluctuate wildly, meaning that the cost of a meal could change significantly between the time a customer orders and when the payment is processed. This could be confusing for customers and businesses alike, especially if the value of Bitcoin drops dramatically between payment and confirmation. Steak ‘n Shake can mitigate this by converting Bitcoin payments to dollars immediately, but the psychological effect of spending Bitcoin when its value could rise might deter some users from paying with crypto.

Another potential issue is the speed and ease of the payment process. Fast-food establishments rely on quick service, and any delays in the payment process could lead to longer lines and frustrated customers. Bitcoin payments, especially on the main blockchain, can sometimes take several minutes to process, which could disrupt the fast-paced environment of a fast-food restaurant. Using the Lightning Network would likely solve this problem, but it’s not clear whether Steak ‘n Shake will use this second-layer solution. It’s crucial that the payment process is fast and easy if the company hopes to see widespread adoption of Bitcoin payments.

Lastly, the long-term feasibility of Bitcoin payments remains uncertain. Will this be a temporary marketing stunt, or a long-term shift in how customers pay for their meals? Steak ‘n Shake appears to be betting on the latter, with plans to expand Bitcoin payments internationally. However, the success of this initiative will depend largely on customer demand. If Bitcoin payments prove popular, Steak ‘n Shake may expand the program, but if it fails to gain traction, the company could scale back or abandon the project altogether.