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Shake Shack announces growth plans in annual report, adds SVP of People Resources

June 3, 2019

Although it took Shake Shack five years to open its second location, growth is now top of mind and increasing its domestic footprint is its biggest growth opportunity, according to Shake Shack’s annual report released Monday morning.

"Shake Shack’s business model remains strong and we intend to open many more Shacks," it said. "We waited nearly five years to open our second Shack, and we are still in the very early stage of our story."

The chain, which has 124 domestic company-operated and 12 domestic licensed Shacks in 26 states and Washington, D.C., sees tremendous opportunity to expand in existing and new U.S. and is investing in infrastructure to make it happen.

A typical Shack takes between 14 and 20 weeks to build, according to the report, with the total investment cost, including furniture, fixtures and equipment, ranging  from $1.4 million to $4 million with an average of about $2.2 million.

Shake Shack opened 34 Shacks in 2018 , representing a 37.8% increase in its domestic company-operated Shack count. Although the leadership team sees the potential to hit 450 Shacks in the U.S, it doesn’t have an anticipated timeframe for such expansion.

"We believe we have a versatile real estate model built for growth," according to the report, which said the chain will grow by clustering in high-density markets in a variety of formats including urban centers, free-standing pads, mall locations, food courts, lifestyle centers, train stations, airports, stadiums and more. 

International growth
Shake Shack, which has 72 international units, will also continue to expand its footprint throughout countries in which it already operates but will also enter new markets. 

"This strategy historically has been a low-cost, high-return method of growing our brand awareness and providing an increasing source of cash flow," according to the report.

Throughout 2018, the chain opened 13 international licensed Shacks, which included growth in Japan and South Korea and entered Hong Kong this year. Additionally, it made agreements to bring Shake Shack to the Philippines and Singapore, with the plan of opening 15 Shacks in the Philippines through 2026 and 10 Shacks in Singapore through 2023. Shake Shack is also investing in its first international regional office in Hong Kong, and outside of Asia, the chain entered into a partnership to bring Shake Shack to Mexico, with the plan to open 30 Shacks through 2028, and the first to open in 2019. 

"These new partnerships are great opportunities for our team to grow, learn and bring back new insights to the broader company," according to the report. 

Shake Shack hires SVP of People Resources

Shake Shack has hired Diane Neville as SVP of People Resources As of June 17, she will be responsible for the development and oversight of all human resources workforce strategies and functions, according to a company press release.

Most recently, she served as the chief people officer for The Piada Group. Prior to that, she was the director of Human Resources, Compliance and Employee Relations for P.F. Chang’s China Bistro Inc. and Pei Wei Asian Diner. She's also held various human resources leadership roles at Grimaldi's Coal Brick Oven Pizzeria Inc., McKesson Corporation, Fender Musical Instruments and AON Hewitt.