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How Shake Shack is transforming the drive-thru experience

An in-depth analysis of the chain’s earnings from senior food and beverage editor Bret Thorn


Welcome to First Bite, a Nation’s Restaurant News podcast, your daily source of news from NRN hosted by Holly Petre.

Today, we’re analyzing Shake Shack’s latest quarterly earnings call and its impact on the company’s business.

Shake Shack is betting big on its drive-thrus. With a 10.1% rise in same-store sales falling below analysts’ low- to mid-teens predictions, the chain is struggling to find its footing as the segment leader it once was.

One thing it hopes will bring it back is drive-thru units situated in suburban areas, a relatively new market for Shake Shack.

The six already-opened drive-thrus have outperformed current average weekly sales per restaurant by about $6,000.

The chain also announced a price raise in the mid-fourth quarter of 5-7%, the second price hike this year following one in March. CEO Randy Garutti still believes Shake Shack has the competitive edge among its better-burger competitors, however, even with the price hikes.

He underscored how important the chain’s commitment to the drive-thrus will be over the next year or so as they learn the ropes of running a drive-thru business.

NRN senior food and beverage editor Bret Thorn has more on the earnings.

Plus, catch up on all the top news of the day with our daily news recap at the beginning of each episode.

Be sure to subscribe to First Bite wherever you get your podcasts or on CastosSpotify, or Apple Podcasts.


TAGS: Fast Casual
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