NRN: Shake Shack Expands its Omnichannel Strategy
As far as fast food chains go, Shake Shack has been a fairly late adopter of digital technology. The American fast-casual burger brand faced significant disruption in the earlier months of COVID-19, as evident by the 64% decline in same-store sales for Q2 2020. In that regard, CEO Randy Garutti has acknowledged in a presentation last November the need for Shake Shack to become an “omnichannel brand” that meets its customers wherever they are.
“We remain committed to our digital transformation and we’re ramping up investment in every digital channel,” said Garutti. “Through the Shack Track digital experience, whether you want your Shack [food and drinks] in our app, web, kiosk, drive-up, curbside, delivery and now drive-thru, we’re building tools to add even greater convenience to the omnichannel Shack experience.”
After opening its first-ever drive thru back in December 2021, Shake Shack now has five of them, with plans to add at least five more by the end of the year. According to the Chief Financial Officer Katherine Fogerty, “Shake Shack customers were showing more interest in engaging with the chain digitally.” “What we’re really excited about, and where we’re investing, is helping that [digital] guest really understand our menu,” Fogerty explained, adding that their digital customers spend 25% more than their analog ones.
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