Jump to content

Shake Shack

Page semi-protected
From Wikipedia, the free encyclopedia

This is an old revision of this page, as edited by 28CH (talk | contribs) at 17:45, 27 September 2022. The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Shake Shack Inc.
Company typePublic
IndustryRestaurants
GenreFast casual
FoundedJuly 2004; 20 years ago (2004-07), in New York City, United States
FounderDanny Meyer
HeadquartersNew York City, United States
Number of locations
  • 229 (United States)
  • 121 (International)
Areas served
  • United States
  • Bahrain
  • China
  • Hong Kong
  • Japan
  • South Korea
  • Kuwait
  • Mexico
  • Philippines
  • Qatar
  • Saudi Arabia
  • Singapore
  • Turkey
  • United Arab Emirates
  • United Kingdom
Key people
ProductsHamburgers, hot dogs, french fries, chicken, milkshakes, custards, beer, wine
RevenueIncrease US$459.31 million (2018)
Decrease US$31.71 million (2018)
Increase US$15.18 million (2018)
Total assetsIncrease US$433.50 million (2018)
Total equityIncrease US$433.51 million (2018)
Number of employees
6,101 (2018)
WebsiteShakeShack.com
Footnotes / references
[1][2]

Shake Shack is an American fast casual restaurant chain based in New York City. It started out as a hot dog cart inside Madison Square Park in 2001, and its popularity steadily grew.[3] In 2004, it received a permit to open a permanent kiosk within the park,[4] expanding its menu from New York–style hot dogs to one with hamburgers, hot dogs, fries and its namesake milkshakes.

Since its founding, it has been one of the fastest-growing food chains, eventually becoming a public company filing for an initial public offering of stock in late 2014. The offering priced on January 29, 2015; the initial price of its shares was at $21, immediately rising by 123% to $47 on their first day of trading.[5][6][7][8]

Shake Shack Inc. owns and operates over 250 locations globally.[9]

History

Early beginnings and concept

The original Shake Shack located in Madison Square Park

In 2000, New York City began the rebuilding of Madison Square Park, which had fallen into a state of disrepair and misuse. As part of the redevelopment, restaurateur Danny Meyer helped spearhead the creation of the Madison Square Park Conservancy to help redevelop it. One of the first things the Conservancy did in its goal to improve the park was to host an art exhibit called "I <3 Taxi" inside of the park to raise awareness of the renewal effort.[10] Meyer's Director of Operations, Randy Garutti, established a hot dog cart which was run out of the kitchen of Eleven Madison Park, one of Meyer's Union Square Hospitality Group (USHG) operations. Over time, the cart became extremely successful, and remained in operation for nearly three years.[11]

In 2004, the city began taking bids to operate a new kiosk-style restaurant within the park; Meyer outlined his idea for the space, and opened the first Shake Shack in July 2004. From its beginning the restaurant was not designed to be a chain; it was intended to be a single shop location designed specifically for New York City. However, as the original location's sales continued to grow, the group realized that there was a market for expansion.[11]

Since its opening, Shake Shack has grown to be the largest part of the USHG's portfolio. Its average store revenue of US$4 million is more than twice that of McDonald's average store revenue within the United States.[12] Its popularity is such that in the summer at its original location, the wait in line for service can stretch to over an hour, especially on weekends when the weather is pleasant. A webcam on the restaurant's web page shows the current line in real time.[12][13]

Expansion

Shake Shack in Minato Mirai Tokyu Square, Yokohama, Japan
Shake Shack in Pacific Place, Hong Kong

In June 2010, Shake Shack opened its first restaurant outside of New York City at the Lincoln Road Mall in Miami Beach's South Beach neighborhood.[14][15][16] In April 2017 the location completed a month-long renovation that added 586 square feet of space, bringing its seating capacity to 106.[17]

On July 12, 2010, Shake Shack restaurants were opened in the Theater District[18] and the Upper East Side.[19][20] The Upper East Side location's opening was significant because it "lifted" East 86th Street, an urban shopping district which had fallen on hard times; the location had been vacant, and even when occupied, it was described by a neighbor as "never anything good there...dingy and dilapidated...almost an eyesore."[19]

In July 2011, it was announced that Shake Shack had reached a deal with the MTA to open a location in the lower level of Grand Central Terminal.[21] This project was delayed because the tenant occupying the space Shake Shack was to take over, Mexican eatery Zócalo, refused to vacate after the expiration of their lease and filed suit, arguing that the "bidding process (for retail space in Grand Central) is corrupted."[22] The suit was dismissed and Zócalo appealed. In October 2012 Zócalo filed for Chapter 11 bankruptcy protection.[23] In early May 2013, Zócalo vacated the space, and the new outlet opened for business on October 5, 2013.[24]

Shake Shack opened its first airport location in May 2013 in JFK's newly expanded Terminal 4.[25]

IPO and continued expansion

By August 2014, Shake Shack outlets had begun operating in California, Connecticut, Delaware, Washington, D.C., Florida, Georgia, Illinois, Maryland, Massachusetts, New Hampshire, New Jersey, Nevada, Pennsylvania, Texas and Virginia, in addition to the New York locations.[26] That month, reports surfaced that the company was preparing to go public with an IPO and was discussing an underwriting with a number of investment banks, including J.P. Morgan, Morgan Stanley and Goldman Sachs.[26][27]

On January 29, 2015, Shake Shack priced its IPO at $21 per share. On the morning of January 30, 2015, it began trading on the NYSE at $47 per share under the ticker symbol SHAK. In April 2015, shares hit prices of $72, and hit a high of about $90 in May 2015.[28] In its IPO filing, the company stated that it planned to expand its domestic footprint to 450 company-operated stores. While no end date was given for that expansion, the company indicated its intention to open at least 10 restaurants each fiscal year, though it later amended that target to 12 a year and then again later in 2016 to 14 stores a year, a goal that would result in a total of 450 stores in approximately 25 years.[29] Later that May, Shake Shack filed for a trademark for the term "chicken shack" leading to speculation that the company would serve chicken sandwiches.[30] The company temporarily introduced chicken sandwiches to its Brooklyn on July 7, 2015.[31] In January 2016, Shake Shack introduced chicken sandwiches across locations in the United States, having previously started serving them at all Brooklyn Shake Shack locations.[32]

On August 31, 2016, Shake Shack announced it would begin room service at the Chicago Athletic Association Hotel, the first hotel in America to offer in-room Shake Shack.[33]

In November 2016, the first Houston, Texas, location opened inside the Galleria; by March 2017, another opened inside Minute Maid Park in Downtown Houston, with another to open there in August 2019, the 5th overall in the city. The city's 3rd opened at Rice Village in March 2018. By December, the city's 4th opened in Montrose district. In mid-December 2016, Delaware opened its very first in Newark. In February 2017, the first Michigan location was opened in downtown Detroit.[34] A second Michigan location in Troy opened on October 25, 2017. On May 10, 2017, Shake Shack opened their first Kentucky location at The Summit at Fritz Farm in Lexington.[35] That June, the company announced a location would open in Charlotte, North Carolina, in late 2017, becoming the first Shake Shack in the Carolinas.[36] California's 5 locations were all in L.A. County, until the 6th had opened in San Diego on October 20, 2017 at Westfield UTC. The other San Diego location opened in Mission Valley in late 2017,[37] as did a South Bay location in El Segundo in October.[38]

On June 7, 2018, Shake Shack opened their first Ohio location inside Orange Village in East Cleveland, Ohio. More Cleveland area locations would open soon after including an outlet inside the Cleveland Hopkins International Airport main concourse.

On October 10, 2018, Shake Shack announced that it will officially start operations in Singapore at Jewel Changi Airport in 2019.[39] As of 2021, there are eight locations in the city-state.[40]

On June 27, 2019, Shake Shack opened in Mexico City]at Paseo de la Reforma, one of Mexico's busiest streets. The opening was so popular that on opening day, people had it wait in line for about two hours.[41] The restaurant chain is expected to open 30 locations in Mexico by 2029, beginning with the next location in the south of Mexico City in Coapa.[42]

On August 3, 2019, Utah's first location opened in the suburb of Sandy and was built into a 90-year-old historic elementary and high school.[43]

On April 16, 2021, the first Shake Shack in Oregon opened in Beaverton. A second restaurant is scheduled to open in downtown Portland in 2022.[44]

On January 10, 2022, Shake Shack and South Korean food conglomerate SPC Group announced they would launch 10 Shake Shacks in Malaysia in the next 10 years, with the first store due to open in 2023.[45][46]

Paycheck Protection Program relief

In April 2020, Shake Shack applied for funding through the Paycheck Protection Program due to lost business during the COVID-19 pandemic. It received $10 million.[47] Shake Shack was criticised for utilizing a loophole in the program which allowed it to qualify for monetary aid meant to help small businesses. The company operates 189 locations in the U.S., but only employs around 45 persons at each restaurant.[48] Shake Shack CEO Randy Garutti then said it would return the $10 million so that "restaurants who need it most can get it now."[49] In July, it was revealed that Shack Shake founder Danny Meyer's Union Square Hospitality Group took a total of between $11 and $27 million in PPP funding. Meyer was unapologetic about receiving the relief funds, despite the fact that the firm employs a total of 2,300 employees. When the Shake Shack relief funding was revealed, he had earlier appeared on at least one podcast stating that its acceptance of PPP funding was irresponsible.[50]

Other ventures

Shake Shack has frequently been the headlining restaurant at The Infatuation's EEEEEATSCON food festival in Santa Monica, California and Forest Hills, New York. Culinary Director Mark Rosati is known for creating exclusive burger and shake collaborations local restaurants for the festival. In 2018 he collaborated with Brooklyn's Emily restaurant to create a Shack-style burger topped with American cheese, a special “Emmy” sauce and caramelized onions. The burger was so popular that tickets for the event sold out one week in advance, and it was described as a "mash-up of pizza and burger flavors" and "transcendent".[51][52] In 2019 he collaborated with Petit Trois in Santa Monica[53] and Uncle Boons in Forest Hills.[54]

The company sells branded T-shirts, sunglasses, and other accessories, called Shack Swag.[55][56]

A "ShackBurger" and crinkle-cut French fries

Shake Shack's shakes have been reviewed as "some of the best in the industry".[12] It also sells chicken burgers, fries, hot dogs, frozen custards, and beer and wine.[57] In each new location, the beverage menu is customized to the local flavors of the city in which it operates.[58] Their most famous product is the ShackBurger. Available in single or double, it contains a beef patty, American cheese, lettuce, tomato and a proprietary sauce known as Shack Sauce.

NYPD controversy

In June 2020, employees of a Shake Shack restaurant in Lower Manhattan were falsely accused of poisoning two police officers with bleach after they reported that their shakes had a strange taste.[59][60][61][62][63] The accusations originated online from the Detectives' Endowment Association and the Police Benevolent Association of the City of New York and were widely shared on social media before being reported by numerous media outlets.[62] A police investigation found no criminality on the part of the Shake Shack workers and the restaurant was cleared of wrongdoing.[59] Shake Shack later stated that the strange taste of the drinks may have been caused by faulty cleaning of a milkshake machine.[63]

See also

References

  1. ^ "US SEC: Form 10-K Shake Shack Inc". U.S. Securities and Exchange Commission. Archived from the original on May 5, 2018. Retrieved June 27, 2018.
  2. ^ McCann, K.; Tanzilo, R. (2016). Milwaukee Frozen Custard. American Palate. Arcadia Publishing Incorporated. p. 121. ISBN 978-1-62585-717-0. Retrieved November 14, 2017.
  3. ^ "Shake Shack — Story". Pentagram. Archived from the original on August 4, 2020. Retrieved February 28, 2020.
  4. ^ Welch, Liz (April 8, 2015). "Shake Shack's Danny Meyer: 'I Was Completely Convinced I Was an Imposter'". Inc.com. Retrieved August 9, 2022.
  5. ^ "Burgerzwerg erobert die Börse". Handelsblatt. January 30, 2015. Archived from the original on November 10, 2015. Retrieved November 1, 2015.
  6. ^ Ro, Sam (January 30, 2015). "Shake Shack Opens For Trading". Business Insider. Archived from the original on February 2, 2015. Retrieved November 1, 2015.
  7. ^ "Burger mania: Shake Shack stock up 120%". CNN Money. January 30, 2015. Archived from the original on November 1, 2015. Retrieved November 1, 2015.
  8. ^ Driebusch, Corrie (January 30, 2015). "Shake Shack Shares Surge in Market Debut". The Wall Street Journal. Archived from the original on September 6, 2015. Retrieved November 1, 2015.
  9. ^ Wagner, Jodie. "Shake Shack, three other stores to open this summer at The Gardens Mall". The Palm Beach Post. Archived from the original on June 7, 2020. Retrieved June 2, 2020.
  10. ^ "Shake Shack S-1". Shake Shack. Archived from the original on July 3, 2016. Retrieved July 30, 2016.
  11. ^ a b Wolfe, Josh (January 27, 2014). "The Secret Sauce of Shake Shack's Success". Forbes. Archived from the original on August 28, 2014. Retrieved May 27, 2014.
  12. ^ a b c Kramer, Katie (October 15, 2010). "Shake Shack Founder Expands His Empire". CNBC. Archived from the original on May 28, 2014. Retrieved May 27, 2014.
  13. ^ "Shake Shack S-1". Shake Shack. Archived from the original on August 16, 2015. Retrieved July 13, 2015.
  14. ^ Powers, Jacquelynn D. (June 15, 2010). "The First Burger & Fries at Shake Shack South Beach" Archived November 2, 2017, at the Wayback Machine. Miami New Times.
  15. ^ "Shake Shack on Lincoln Road" Archived July 6, 2017, at the Wayback Machine. Lincoln Road Mall. June 2010. Retrieved July 9, 2017.
  16. ^ Victoria Pesce Elliott (August 18, 2010). "3 Stars for Shake Shack". Miami.com.
  17. ^ Reiser, Emon (April 10, 2017). "Shake Shack in Miami Beach undergoes renovation" Archived May 5, 2017, at the Wayback Machine. South Florida Business Journal.
  18. ^ Levin, Sam (July 12, 2010). "Burger lovers rejoice! Minichain Shake Shack opens in Times Square". Daily News. New York. Archived from the original on July 15, 2010. Retrieved July 12, 2010.
  19. ^ a b Gregor, Alison (January 19, 2010). "Square Feet: New Tenant Lifts a Manhattan Street". The New York Times. Archived from the original on January 28, 2010. Retrieved August 3, 2011.
  20. ^ Fabricant, Florence (August 4, 2010). "Diners Journal: Upper East Side Shake Shack Is Open". The New York Times. Archived from the original on August 26, 2011. Retrieved August 3, 2011.
  21. ^ Haughney, Christine (July 25, 2011). "More Crowded Crowds: Grand Central to Welcome Apple and Shake Shack". The New York Times. Archived from the original on January 21, 2012. Retrieved July 30, 2011.
  22. ^ Pasquarelli, Adrianne (July 20, 2012). "Shake Shack gets sidetracked at Grand Central | Crain's New York Business". Crainsnewyork.com. Archived from the original on July 23, 2012. Retrieved February 8, 2014.
  23. ^ Pasquarelli, Adrianne (October 26, 2012). "Grand Central tenant Zócalo files for bankruptcy | Crain's New York Business". Crainsnewyork.com. Archived from the original on April 3, 2017. Retrieved February 8, 2014.
  24. ^ "Danny Meyer's Shake Shack finally takes over Grand Central space | Crain's New York Business". Crain's New York. May 8, 2013. Archived from the original on April 2, 2017. Retrieved February 8, 2014.
  25. ^ "JFK Terminal 4 To Get Shake Shack, Blue Smoke, Marcus Samuelsson Concept And More (PHOTOS)". Huffington Post. March 6, 2013. Archived from the original on March 4, 2015. Retrieved October 21, 2017.
  26. ^ a b "Burger chain Shake Shack preparing for an IPO - sources". Reuters. August 15, 2014. Archived from the original on August 15, 2014. Retrieved August 15, 2014.
  27. ^ Lorenzetti, Laura (December 29, 2015). "Fast food chain Shake Shack files for an IPO". Fortune. Archived from the original on October 31, 2015. Retrieved January 11, 2016.
  28. ^ Galarza, Daniela (April 27, 2015). "Shake Shack Shares Jump to Over $70 Per Share". Eater. Archived from the original on March 4, 2016. Retrieved January 11, 2016.
  29. ^ Fahey, Mark (March 7, 2016). "Shake Shack's expansion by the numbers" Archived July 28, 2017, at the Wayback Machine. CNBC.
  30. ^ Shah, Khushbu (May 21, 2015). "Is Shake Shack Adding Chicken Sandwiches to Its Menu?". Eater. Archived from the original on March 26, 2016. Retrieved January 16, 2016.
  31. ^ Morabito, Greg (July 7, 2015). "Danny Meyer Enters Top-Secret Launch Codes for Nuclear Chicken Sandwich A-Bomb at Shake Shack". Eater. Archived from the original on January 21, 2016. Retrieved January 16, 2016.
  32. ^ Galarza, Daniela (January 14, 2016). "Shake Shack Releases Chick'n Shack Sandwiches Nationwide". Eater. Archived from the original on January 15, 2016. Retrieved January 15, 2016.
  33. ^ Selvam, Ashok (August 31, 2016). "Shake Shack & Chicago Athletic Association Reach Deal To Offer Room Service" Archived September 3, 2016, at the Wayback Machine. Eater Chicago.
  34. ^ Selasky, Susan (February 23, 3017). "Detroiters celebrate Shake Shack's downtown opening" Archived February 26, 2017, at the Wayback Machine. Detroit Free Press.
  35. ^ Bertram, Charles (May 11, 2017). "Shake Shack opens at Lexington’s The Summit at Fritz Farm" Archived July 15, 2017, at the Wayback Machine. Lexington Herald Leader.
  36. ^ Peralta, Katherine (June 12, 2017)."Shake Shack is coming to Park Road Shopping Center" Archived July 16, 2017, at the Wayback Machine. Charlotte Observer.
  37. ^ "Second San Diego Shake Shack Location To Open In Mission Valley". www.sandiegoville.com. Archived from the original on October 22, 2017. Retrieved October 21, 2017.
  38. ^ "Shake Shack 'can't wait' to open first South Bay eatery this fall in El Segundo". Daily Breeze. June 20, 2017. Archived from the original on October 22, 2017. Retrieved October 21, 2017.
  39. ^ "Burger chain Shake Shack to open first Singapore outlet at Jewel Changi Airport". Channel NewsAsia Lifestyle. October 10, 2018. Archived from the original on October 10, 2018. Retrieved October 10, 2018.
  40. ^ "Shake Shack - Locations". Shake Shack. Retrieved August 27, 2021.{{cite web}}: CS1 maint: url-status (link)
  41. ^ "Así fue el día 1 de locura de Shake Shack en México". Expansión (in Spanish). June 28, 2019. Archived from the original on July 25, 2019. Retrieved July 25, 2019.
  42. ^ "¿Fan de las hamburguesas y malteadas? Shake Shack llega a la CDMX". El Financiero (in Spanish). Archived from the original on July 25, 2019. Retrieved July 25, 2019.
  43. ^ "The history of the building that will be Shake Shack's new home". www.ksl.com. Archived from the original on July 31, 2019. Retrieved July 31, 2019.
  44. ^ "Shake Shack's First Oregon Location Opens April 16 [Updated] - Eater Portland".
  45. ^ "Popular New York chain Shake Shack to open in Malaysia in 2023". The Star. Retrieved January 12, 2022.
  46. ^ "Shake Shack teams with South Korean conglomerate to tap into Malaysia". UPI. Retrieved January 12, 2022.
  47. ^ Ruhle, Stephanie; Johnson, Alex. "Shake Shack returning $10 million government loan meant for small businesses". NBC News. Archived from the original on July 30, 2020. Retrieved April 21, 2020.
  48. ^ Yaffe-Bellany, David (April 20, 2020). "'The Big Guys Get Bailed Out': Restaurants Vie for Relief Funds". The New York Times. Archived from the original on August 17, 2020. Retrieved April 21, 2020.
  49. ^ Chappell, Bill (April 20, 2020). "Shake Shack Returns $10 Million Loan To U.S. Program For Small Businesses". NPR.org. Archived from the original on September 17, 2020. Retrieved April 21, 2020.
  50. ^ Krader, Kate (July 11, 2020). "Danny Meyer Took PPP Loans After All. And He's Not Apologizing". Bloomberg. Archived from the original on August 31, 2020. Retrieved July 11, 2020.
  51. ^ "The 5 Best Things We Ate at The Infatuation's Eeeeeatscon". PEOPLE.com. Archived from the original on October 11, 2018. Retrieved February 12, 2020.
  52. ^ "Festival Featuring Music, Culinary Panels and Lots of Food Coming to Forest Hills Stadium". Forest Hills Post. September 27, 2018. Archived from the original on May 26, 2020. Retrieved February 12, 2020.
  53. ^ "Two Days In LA: The Infatuation's EEEEEATSCON Los Angeles May 18 & 19". MarketWatch. Retrieved February 12, 2020.
  54. ^ "EEEEEATSCON lineup includes a new Shake Shack burger with a Thai twist - amNewYork". www.amny.com. Archived from the original on May 26, 2020. Retrieved February 12, 2020.
  55. ^ "Shake Shack Shop". shop.shakeshack.com. Archived from the original on June 23, 2017. Retrieved September 1, 2017.
  56. ^ Shack, Shake (September 12, 2014). "Shake Shack x Staple Design LTD Collaboration". Shake Shack. Archived from the original on March 4, 2016. Retrieved January 11, 2016.
  57. ^ "Food and Drink". Shake Shack. Archived from the original on June 27, 2018. Retrieved June 27, 2018.
  58. ^ Bartiromo, Michael (February 13, 2013). "The Man Behind Shake Shack's Menu". Mox news. Archived from the original on February 18, 2015. Retrieved May 27, 2014.
  59. ^ a b Fisher, Anthony (June 23, 2020). "Stop taking the police solely at their word". Business Insider. Archived from the original on June 26, 2020. Retrieved June 26, 2020.
  60. ^ Alder, Dan (June 22, 2020). "The NYPD's Shake Shack Saga Was an Even Bigger Fraud Than We Realized". Vanity Fair. Archived from the original on September 21, 2020. Retrieved June 26, 2020.
  61. ^ Dickson, EJ (June 16, 2020). "Of Course Cops Weren't Poisoned at a Shake Shack". Rolling Stone. Archived from the original on June 27, 2020. Retrieved June 26, 2020.
  62. ^ a b Sandoval, Edward (June 16, 2020). "The 'Poisoned' Shake Shack Milkshakes and an N.Y.P.D. on Edge". New York Times. Archived from the original on June 23, 2020. Retrieved June 26, 2020.
  63. ^ a b Yakas, Ben (June 22, 2020). "Officers Who Police Union Falsely Claimed Were "Poisoned" By Shake Shack Reportedly Never Had Symptoms". Gothamist. Archived from the original on June 23, 2020. Retrieved June 26, 2020.
  • Official website
  • Shake Shack Madison Square Park, New York, NY Design (2004) Archived September 24, 2015, at the Wayback Machine | SITE
  • Business data for Shake Shack Inc.:
Retrieved from "https://en.wikipedia.org/w/index.php?title=Shake_Shack&oldid=1112713192"