Campbell customers stunned following Steak 'n Shake closure

CAMPBELL, Calif. (KGO) -- With its Midwestern roots and cult-like following, Steak 'n Shake, the fast-casual chain famous for its steakburgers and milkshakes, has shut down in Campbell.

The restaurant, which had only been open for nearly four months, was located on East Campbell Avenue in Lloyd Square, just steps away from the entry to downtown.

Customers who visited the restaurant Tuesday afternoon were greeted by signs informing them of the closure. Many expressed their shock and disappointment after learning the lights were out.

According to this news organization's media partner, the Bay Area News Group, owner Dan Leder also closed his other Steak 'n Shake restaurant in Daly City. That location survived a little more than a year before shutting down this week.

In Campbell, Leder initially faced a number of delays before finally getting city approval to build out and open his restaurant. Hundreds of residents initially petitioned the city's planning commission, fearing Steak 'n Shake would bring unwanted traffic congestion to the area.

Local entrepreneurs who closely followed the restaurant's opening say the anticipated crowds never came to full fruition. At least one nearby restaurant owner said it was uncommon for a new business to shut down so quickly after opening.

This all comes as city officials review plans for an In-N-Out Burger on Hamilton Avenue near Highway 17. Residents have also spoken out about their traffic-related concerns.

Chris Nguyen will have the latest on this story starting at 4:55 p.m. on ABC7 News. Click here to follow him on Twitter.