Shake Shack embarks on a bold new world of dining

Overall, Shake Shack continues to face a twisty landscape. The chain’s fourth quarter performance exceeded historical seasonality, with average weekly sales of $ 74,000 compared to $ 72,000 in the third quarter of 2021. Comparable store sales were up 2.2% from levels. 2019, compared to 7.3% in the third quarter.

A key division being that the brand’s urban operations left 2021 down just 4% from 2019. Suburban was up 9%.

However, Garutti said, the brand’s hours of operation have declined in the last week of the fiscal year and the first two of the current fiscal year, due to a “sharp increase” in COVID cases. resulting from the omicron variant.

“Like everywhere in the world and in every service industry, we have had a lot of limited hours, a lot of restaurants closed and a limited staff,” he said. “And we certainly haven’t been able to optimize sales over the past few weeks.”

“It’s frustrating,” Garutti added. “But we are very optimistic given the fourth [quarter] watch how things will bounce back and pick up again later in the year.

Fourth-quarter revenue increased 29% to $ 203.3 million year-on-year as the company opened 19 net stores system-wide (13 domestic business units and six licensed restaurants ). The company expects the store-level operating profit margin to be around 16% of sales. For the full year, Shake Shack, which has a long-term goal of 450 stores in the United States, opened 58 net stores (35 companies, one closure and 23 licensed, three closings). It closed the fourth quarter with 218 nationally owned sites operated by the company and 151 Shake Shacks licensed globally, up from 183 and 128, respectively, from the previous year.

Shake Shack.

Speaking further on Shake Shack’s digital growth, CFO Katie Fogertey said a priority area for the channel in 2022 will be continuing to channel users to native channels. That’s part of why the Drive-thru and Shack Track initiatives are so vital: They showcase the brand’s offsite capabilities in a branded, controlled format.

Shake Shack launched a new website last year and continues to invest “to create that true omnichannel customer experience,” Fogertey said.

“And we really want our own digital channels to be our customers’ favorite channels. We create personalized marketing opportunities to help increase guest frequency and connection. We just know and we keep seeing it, when we bring a guest into our digital ecosystem, we see higher frequency, we see higher checks. There is a better customer experience associated with it. We just think they understand who we are and the added value we deliver.

Making sure operators have the tools they need to best manage Shake Shack’s burgeoning digital business is a critical part of it all, she adds, from store prototypes to backend updates.

As part of the new website launch, Shake Shack updated graphics to help customers through the ordering process. Additionally, this has been “a great tool” for fueling app downloads, Fogertey said. Guests are immediately prompted to download the Shake Shack app. The company has also updated this platform, including dynamic prep time. “We have found that some of the bigger issues that our customers have reported before are unknown wait times,” she said. “They go to Shake Shack and they just don’t know how long it will take.” This investment communicates this process to customers. Add Shake Track and all the new channels available, and Shake Shack can direct consumers to the most convenient format, be it the pickup window or the shelf.

“We’re having some good first success there,” Fogertey said.

Along with the kiosks, Shake Shack will run until 2022. When customers have the opportunity to access it, the brand sees higher controls, as well as a better understanding of the menu, she added. They are more likely to add things like shakes.

“It’s just something that we want to continue to integrate and integrate into our fold,” Fogertey said.


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