Today, Shake Shack published its annual Stand For Something Good® Summary that provides a 2021 update of domestic, company-owned operations with a focus on diversity, equity and inclusion, workplace benefits and compensation, supply chain and sustainability initiatives. The summary also provides an update on the continued growth and menu innovations in international markets.
“I’m incredibly proud of everything the Shake Shack team accomplished in 2021, from bringing awareness to causes we are passionate about in our local communities to making commitments to drive even more positive change across the company,” said Randy Garutti, Chief Executive Officer at Shake Shack. “As we move into the next chapter of the Shake Shack story, we remain committed to investing in what makes us so unique: amazing teams, sourcing premium ingredients, building incredible spaces and delivering uplifting guest experiences.”
Creating uplifting experiences and empowering team members
Since day one, Shake Shack has promised to foster an inclusive and welcoming environment for everyone. In 2021, the company set a 2025 goal for 50% of Shack Leadership and 30% of HQ Leadership roles to be filled by people of color and achieve gender parity across all leadership roles. In 2021, Shake Shack made incremental progress towards these goals and increased the representation of people of color in Shack leadership by 4% and women by nearly 7%. Additional updates include:
- Promotions: Made more than 2,800 internal promotions, with 73% going to people of color and 56% going to women, almost double the number of promotions from 2020.
- Wage Increases & Jobs: Over half of our Shack team members received raises and new hires received sign-on bonuses starting in Q2 in 2021 for a total impact of $9 million in wage increases. Created 1,522 new jobs (79% people of color, 54% women) from new store openings.
- Workplace Flexibility: Continued four-day work week pilot for hourly team members in select locations to provide a more stable schedule and support a better work life balance.
- Expanded Parental Care Benefits: Increased paid leave to 12 weeks for birth parents and four weeks for non-birth parents.
- Career Advancement: Continued career advancement through the Shift Up program providing team members with training to become senior leaders. Launched new career training and development programs that support women and people of color.
- Workplace Diversity: Earned a 100% score on Human Rights Campaign’s Corporate Equality Index, further underscoring support of the LGBTQ+ community in the workplace.
“We’re dedicated to doing the work it takes to be a company that values diversity and encourages inclusion, not only in our words, but in our actions, as we bring our mission to Stand For Something Good® to life each and every day,” said Idris Stover, Director of Diversity, Equity & Inclusion at Shake Shack. “Ensuring equal opportunity for success, diversity in leadership at all levels and a culture that embraces different backgrounds and ideals has been the focus of our efforts since day one.”
Sourcing premium ingredients from best-in-class suppliers
Over the years, Shake Shack has remained committed to sourcing high-quality, real, premium ingredients that are humanely raised and source verified, and working with like-minded farmers and partners including Richards Grassfed. Key updates from 2021:
- Bought 54,824 pounds of regeneratively ranched beef from an Ecological Outcome Institute Verified ranch in Northern California.
- Sold 153,900 Veggie Shack patties at Shack locations made using real veggies and grains.
- Served sustainably produced beer using 100% windmill powered energy with partner Brooklyn Brewery.
- Recycled 1.75 million pounds of waste oil in partnership with Restaurant Technologies Inc.
- Retired the use of glass bottles and through the Shack wine program, using kegs and aluminum cans eliminated 180,000 pounds of carbon dioxide equivalent (CO2e). Since 2018, Shack has now sold 2,400 kegs and 350,000 cans of wine.
“Shake Shack’s focus on premium ingredients, thoughtful sourcing and animal welfare has always been core to who we are,” said Jeffrey Amoscato, Senior Vice President of Supply Chain and Menu Innovation at Shake Shack. “We’re committed to learning from and collaborating with our peers and the broader industry to better understand barriers and potential solutions for accelerating improvements more broadly across the food industry.”
Tracking and reducing our environmental impact
In 2021, Shake Shack completed its first Scope 1 and 2 emissions reporting with Schneider Electric LLC. The company is also beginning Scope 3 emissions tracking in partnership with HowGood, a sustainability intelligence platform that measures the carbon emissions of menu items and ingredients. This reporting and tracking are the first step for the company to assess its current standing and establish a baseline to implement decarbonization plans and ensure sustainable operations and supply chains in the future. Our accounting methodology follows the standards set forth by the WRI’s Greenhouse Gas Protocol Corporate Standard, and our data was checked by a third party for completeness and accuracy. Further updates from 2021:
- Sought out more sustainable design and packaging solutions. Transitioned to-go bags to 100% recycled fiber, including 95% post-consumer content and launched a pilot of plastic free and carbon-negative straws and cutlery in several markets, which are now permanent in large markets such as New York City.
- Installed solar panels at five locations with more on the way, saving the equivalent of 1,427 gallons of gasoline or 29 barrels of crude oil per year. In addition, 30% of new Shack openings in 2021 realized a 20% YOY reduction in Kitchen Exhaust System energy usage.
- Evaluating the inclusion of Electric Vehicle charging stations in future site designs for the benefit of guests and as Electric Vehicle adoption scales in the U.S.
- All locations have an eco-friendly connection including the use of reclaimed materials in furniture and interior and exterior structures such as digital menu boards and the use of energy efficient equipment in kitchens and throughout restaurants.
“We are looking to better understand and ultimately reduce the environmental impact of operating our brick-and-mortar restaurant locations, everything from energy and water usage to air purity and transportation footprint,” said Andrew McCaughan, Chief Development Officer at Shake Shack. “Energy efficiency has become a key driver in reducing our environmental impact, and something we will continue to evaluate.”
To read the full summary, see here. For more information on Shake Shack and its mission to Stand for Something Good®, visit shakeshack.com.