Why Shake Shack Is Borrowing Ideas from Fast Food Restaurants | WSJ The Economics Of

Published 2024-05-30
Shake Shack built a $4 billion business as an alternative to fast food, with gourmet cachet and lofty prices. But as the fast casual restaurant expands, it’s embracing a tested fast food strategy: drive thru, and hoping it won’t get in the way of its premium branding.

WSJ explains how the burger chain is trying to speed up operations and expand, while keeping a more premium image than fast food chains like Chick-fil-A, McDonald’s and Taco Bell.

Chapters:
0:00 Shake Shack expansion
0:43 History of long lines
1:10 Drive-thrus
3:52 International licensing

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All Comments (21)
  • @wsj
    Applebee’s and IHOP look to serve diners hungry for deals. Will profits take a hit? on.wsj.com/3Vjp9Zu
  • @stuff4232
    the idea of infinite growth is what will always destroy a companies core principles.
  • @wheressteve
    In order to clearly not be fast food Shake Shack will become identical to fast food....how innovative.
  • @HiddenWen
    I see this as the beginning of the end for this company. They always start off well, then when they make it big, they start to get greedy, and lose sight of their core values. Happens to so many companies.
  • @vonoxid
    The moment businesses decide to outsource lettuce cutting, is the moment they abdicate their premium differentiator. Freshness is inherently heavily comprised in pre-processed ingredients.
  • The beginning of the decline of Shake Shack. They are taking an idea that has worked in the past, and they’re applying efficiency to squeeze a little bit more profit and growth. Eventually, they’ll keep chipping away at what made this business great. The good news is that this helps local mom and pop shops because people can rely on that slow quality food from those local restaurants.
  • You can already see the quality going down. The CFO just said we will not wash and cut Lettuce. We will use pre-cut Lettuce. Okay, so what else are you going to cut corner on for saving time next?
  • Expensive AF. No meals, all single order menu items. No flexibility
  • @collegeguy799
    So their strategy is to become a fast food chain? 🤣🤣🤣
  • @seanjackson6305
    I went to Shake Shack for the first time a few days ago. The food was mediocre at best, overpriced, and the portion sizes were small. The only reason I went to Shake Shack was to take advantage of the $10 a month credit from my AMEX Gold card, but even with the discount, I didn't feel it was worth it. I may try The Cheesecake Factory next month to use my credit.
  • @hemaccabe4292
    SS can do a drive thru but they need to build in a lot of waiting carrols for cars who have already placed their orders so they can keep the line moving. Would also help to have a long drive between order kiosk and pay kiosk.
  • @jont2576
    anti fast food with anti fast food prices but the food couldnt taste more like fast food. the quality of shake shack burgers and fries is barely above mcdonald's but they charge u nearly twice the price of mcdonalds and 30 percent more than five guys, whose burgers are actually as close to real beef as u can get in any restaurant burger chain.
  • @rcuev118
    Shake shack is expensive af and doesn’t taste the best.
  • There's a Shake Shake in Atlanta off the Eastside Beltline, and it was a tasty treat that you could walk to without needing a car.
  • @chloep4818
    shake shake is expensive asf and i never get an order under 15 mins whether or not the location is busy. you can expect to pay $17 for a drink fry and large lemonade
  • Am getting accustomed to Ms. Heather Haddon's delivery. Her deadpan delivery is amazing.
  • @bcatbb2896
    I actually saw shake shack opening up a location in my city Didn’t know who they are until seeing this
  • @osamaFXX
    They start to prepare your order the minute you order it, because 100% of people not 99% will pay for their food. So why to delay the order until you swap your card? excellent approach to save time both in the kitchen and for hungry folks.