I believe that most people will not say no to burgers, frozen custard, and fries, right? I mean, just the thought of eating these foods can make one hungry and craving. For some, these are comfort foods that can even take away stress and sadness for a while. You might not believe that America’s favorite burger, fries, and frozen custard joint started from a single hotdog cart in New York City. We are talking about none other than Shake Shack.
The fast-food chain Shake Shack’s humble beginning and facts
In 2001, what started as a hotdog stand in Madison Square Park in New York City. Their hotdogs grew very popular in that same park, and people began to love and support this stand. After three years, Shake Shack decided to add more items to their menu. They introduced hamburgers, fries, and milkshakes aside from their hotdogs.
This move did not only help Shake Shack became a fast-growing food chain but also a public company. Their very first initial stock public offer was also in 2004.
What’s happening?
We all know that the coronavirus pandemic hurt most businesses due to lockdowns and other restrictions. Last year, Shake shack’s revenue was $523 million. This revenue might look pleasing to some, but this is a noticeable difference for Shake Shack. The decline’s percentage is 12.1 if compared to their gains in 2019.
However, Shake Shack started to regain their glory with a noticeable increase recently. If we look at the average of every store’s weekly sales, it is already showcasing strength. For example, their January 2021’s weekly sales multiplied by almost two times if we compare it to April 2020.
Despite the coronavirus pandemic
Let us go back to where everything started — New York City. Even though they started very strong in that area, Shake Shack experienced revenue distress there, especially in the first few months of 2021 due to the cold weather and the restrictions. People did not want to go out because they want to avoid the virus and the winter.
However, this did not stop our favorite chain. Shake Shack continued to sail their way to expansion as they welcomed 36 more stores in 2020. Today, they boast a total of 311 locations in 15 different countries and a $5 billion company value.
So, how did they do it? Shake Shack will not put aside the fact that the world has exceptionally advanced. Thanks to technology, they could gain and retain customers through their mobile application, website, and delivery men. Shake Shack increased their digital channel sales by 300% if we compare February 2021 from December 2020. Thank God for global advancement!
What’s next?
Shake Shack will add more or less 80 to 90 company-operated locations and 35-45 more international locations for the coming two years. If this is not too good to be true, they are looking at a 43% expansion with a total of 445 stores.
Also, since there is no assurance when the pandemic will end, there will be slight changes and additions in their daily operations. Some of these include no contact pickup, walk-up windows, and drive through’s.
