Shake Shack(SHAK)2024-02-28 16:00Workforce and Employee Benefits - Shake Shack operates 518 Shacks system-wide, including 295 domestic Company-operated Shacks, 39 domestic licensed Shacks, and 184 international licensed Shacks across major cities globally[22] - The company has 12,196 team members as of December 27, 2023, with 11,795 hourly team members and Shack-level managers, and 401 home office personnel[29] - Shake Shack expanded its health benefits in fiscal 2023 to include reproductive health benefits, family planning, pregnancy termination coverage, and counseling support[34] - The company launched a new learning management system with 230 help articles, utilized over 29,000 times by team members, and improved compliance training through its ERP system[28] - Shake Shack's workforce is 48% women and 76% people of color, reflecting its commitment to diversity and inclusion[37] - The company implemented predictive scheduling tools and expanded its talent acquisition team to improve staffing and compliance[26][30] - Shake Shack introduced a new mobile-friendly hiring platform expected to roll out in early 2024, aiming to enhance the candidate experience and reduce recruiting hours for managers[28][31] - The company extended its equity-based compensation program to all General Managers to incentivize performance and ownership[34] - Shake Shack was recognized as a "Best Place to Work for LGBTQ+ Equality" by the Human Rights Campaign for the fifth consecutive year[37] - The company launched unconscious bias training modules for leaders in fiscal 2023 to address bias and promote inclusivity[37] - The HUG Fund provided over 170 grants since 2017, with over 40 team members receiving grants in fiscal 2023 to alleviate financial hardships[39] - Shake Shack promoted 3,234 employees in fiscal 2023, with 52% being women and 76% being people of color[44] - The Shift Up leadership program had 88 participants in fiscal 2023, with 14 promoted to Manager-In-Training, Manager, or California Non-Exempt Manager roles[43] - Shake Shack launched a 14-week leadership course in fiscal 2023, resulting in 15 leaders receiving Columbia Business School certificates and a 95% satisfaction rate[41] - The company achieved 100% of core competencies and over 50% of leadership competencies developed in fiscal 2023[43] - Shake Shack expanded its Enterprise Resource Planning System (ERP) resources, including a new learning management system and a knowledge portal with 230 help articles, utilized over 29,000 times by team members[28] - The company implemented a new mobile-friendly platform for job applications and interview scheduling, expected to roll out in early 2024[28] - Shake Shack launched compliance and safety e-learning courses tailored by location and level, with automated course progress tracking in fiscal 2023[28] - The company improved employee retention and turnover rates in fiscal 2023 by evolving its value proposition, including health and well-being benefits, absence support, and tipping options[33] - Shake Shack began running food to tables in nearly all Shacks in fiscal 2023 to improve hospitality and tipping opportunities for team members[33] - The company is developing a new team member handbook to be rolled out in 2024, updated for new and current legal requirements[28] - Shake Shack expanded its predictive scheduling tools and team to assist with compliance and staffing needs[26] - The company launched a New Manager Program and piloted a high-potential team member leadership program in fiscal 2023[26] - Expanded health benefits to include reproductive health, family planning, pregnancy termination coverage, and counseling support[34] - Equity-based compensation program extended to all General Managers to incentivize performance and ownership[34] - Women make up 48% and people of color comprise 76% of the total workforce, with a focus on diversity and gender parity in leadership roles[37] - Over 40 team members received grants from the HUG Fund in fiscal 2023 to alleviate financial hardships[39] - Promoted 3,234 employees in fiscal 2023, with 52% being women and 76% being people of color[44] - Shift Up leadership program had 88 participants in fiscal 2023, with 14 promoted to managerial roles[43] Menu Innovation and Partnerships - Shake Shack introduced kiosk product customization in September 2023, achieving attachment rates on par or higher than digital platforms[50] - The company expanded large order boxes in 2023 to include items like Chicken Shack, Veggie Shack, and 'Shroom Burgers[52] - Shake Shack launched three new plant-based menu items, including the Veggie Shack, Non-Dairy Chocolate Shake, and Non-Dairy Frozen Custard, as part of its core menu[66] - The company partnered with DreamWorks to create three holiday shakes inspired by the Trolls characters, driving brand engagement during the holiday season[66] - Shake Shack collaborated with renowned chefs and brands, such as Nina Compton and TABASCO, to create limited-time menu offerings and unique dining experiences[66] - The company's Innovation Kitchen in New York City serves as a testing ground for new menu items, with successful items potentially becoming national limited-time offerings or permanent menu items[80] - Shake Shack's LTO program in fiscal 2023 included premium burgers, chicken sandwiches, and unique shakes, such as the White Truffle Burger and Trolls Holiday Shakes[81] - Shake Shack launched three new plant-based menu items, including the Veggie Shack, Non-Dairy Chocolate Shake, and Non-Dairy Frozen Custard[66] - Shake Shack collaborated with Nintendo for a Super Mario Bros movie-themed experience, offering exclusive menu items and swag[66] - Shake Shack partnered with DreamWorks for Trolls Band Together, creating three holiday shakes inspired by the movie characters[66] - Shake Shack's Chief Avocado Officer campaign reached an estimated TV audience of over 4 million[66] - Shake Shack's LTO program in fiscal 2023 included the White Truffle Burger, Bourbon Bacon Jam Burger, and Hot Menu[81] Expansion and Operational Growth - Shake Shack expanded its domestic Company-operated footprint by opening 41 new Shacks in fiscal 2023, representing a 16% increase from the prior year, reaching a total of 295 domestic Company-operated Shacks[86] - The company plans to open approximately 40 new Company-operated Shacks in 2024, continuing its multi-format strategy including core, drive-thru, flagship, and small format locations[86] - Shake Shack's average investment cost for new Shacks in fiscal 2023 was approximately $3.0 million, or $2.6 million net of tenant improvement allowances, an 8.3% increase compared to the prior year[89] - Total investment cost for new Shacks ranged from $1.1 million to $6.4 million, with construction times varying between 16 and 56 weeks[91] - The company opened 82 net new system-wide Shacks in fiscal 2023, reaching a total of 518 Shacks worldwide[84] - As of December 27, 2023, Shake Shack had 29 drive-thru locations in operation, with plans to expand in coastal markets like Long Island, New York, New Jersey, and California in 2024[92] - Approximately 95% of domestic Company-operated Shacks now have kiosks, making it the largest and fastest-growing channel with the highest margins[93] - Shake Shack opened 38 international licensed Shacks in fiscal 2023, including 13 in China and Hong Kong, and closed 3, with one temporarily closed as of December 27, 2023[98] - The company had 223 licensed Shacks as of December 27, 2023, with 184 international and 39 domestic locations[95] - In fiscal 2023, Shake Shack opened 6 domestic licensed Shacks, including one at Newark Liberty International Airport and five in roadway travel plazas in New Jersey and New York[99] - Shake Shack plans to expand its domestic Company-operated Shack footprint to at least 450 Shacks in the long term[85] - Expanded domestic Company-operated Shacks by 41 in fiscal 2023, a 16% increase from the prior year, totaling 295 as of December 27, 2023[86] - Targeting to open approximately 40 new Company-operated Shacks in 2024, focusing on multi-format strategies including drive-thru and small formats[86] - Average investment cost for new Shacks in fiscal 2023 was $3.0 million, or $2.6 million net of tenant allowances, an 8.3% increase from the prior year[89] - Completed kiosk retrofit program with 95% of domestic Company-operated Shacks now equipped, making it the highest margin channel[93] - Opened 38 international licensed Shacks in fiscal 2023, including 13 in China and Hong Kong, and closed 3, with 223 licensed Shacks globally as of December 27, 2023[95][98] - Domestic licensed Shacks grew by 6 in fiscal 2023, including locations at Newark Liberty International Airport and roadway travel plazas[99] Community Engagement and Social Responsibility - Shake Shack donated $1 from each designated menu item sold at select new Shack openings in fiscal 2023 to local nonprofit partners[59] - The company donated approximately $8,000 to local children's hospitals and supported various charity events in fiscal 2023[60] - Shake Shack's social media presence includes over 1.1 million organic posts under shakeshack on Instagram, with expanded creator partnerships and brand storytelling in fiscal 2023[62] - Donated $1 from designated menu items at select new Shack openings to local nonprofits in fiscal 2023[59] - Shake Shack donated approximately $8,000 to local children's hospitals in fiscal 2023 as part of Child Health Day[60] - Shake Shack's social media presence includes over 1.1 million organic posts under the hashtag "shakeshack" on Instagram[62] Supply Chain and Sustainability - Approximately 41% of ground beef patties were sourced from one supplier, with 10 approved ground beef processors and limited suppliers for major ingredients like chicken, potato buns, and custard[110] - Approximately 95% of certain food and beverage ingredients, including chicken, fries, and custard, were distributed through a single broadline distributor, representing 47% of total purchases[111] - Shake Shack utilized 20 affiliated distribution centers to supply domestic Company-operated Shacks as of December 27, 2023[112] - The company tracks and calculates Scope 1 and Scope 2 greenhouse gas emissions to comply with industry standards and assess environmental impact[114] - Sourced 41% of ground beef patties from a single supplier, with 10 approved ground beef processors and 9 raw beef suppliers in the U.S.[110] - Approximately 95% of certain food and beverage ingredients distributed through a single broadline distributor, representing 47% of total purchases[111] - Conducted quarterly third-party food safety audits and mock food recalls to ensure rigorous quality assurance and safety protocols[113] Digital and Technology Initiatives - Digital initiatives drove incremental sales through personalized offers on app and web channels using Braze's Content Cards[49] - Kiosk customization feature launched in September 2023, showing strong guest adoption and attachment rates[50] - Centralized data consolidation project initiated in fiscal 2023 to enable fresh insights and informed decision-making, with a focus on hybrid cloud infrastructure[106] Intellectual Property and Trademarks - Shake Shack has 25 registered trademarks domestically and core marks registered in 81 countries across six continents as of December 27, 2023[118]