Marketing

Shake Shack striving to improve worker conditions, lower carbon footprint

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April 28, 2022

In its third annual "Stand For Something Good Summary," Shake Shack revealed Thursday that it was focused on diversity, equity and inclusion, workplace benefits and compensation, supply chain and sustainability initiatives.

"I'm incredibly proud of everything the Shake Shack team accomplished in 2021, from bringing awareness to causes we are passionate about in our local communities to making commitments to drive even more positive change across the company," CEO Randy Garutti said in a company press release. "As we move into the next chapter of the Shake Shack story, we remain committed to investing in what makes us so unique: amazing teams, sourcing premium ingredients, building incredible spaces and delivering uplifting guest experiences."

The report focused on the following:

1. Creating uplifting experiences and empowering team members.
2. Sourcing premium ingredients from best-in-class suppliers.
3. Tracking and reducing environmental impact.

Creating uplifting experiences and empowering team members

Last year, Shake Shack set a 2025 goal to fill 50% of its leadership roles and 30% of HQ leadership roles with people of color, which it took steps toward by increasing the representation of people of color in Shack leadership by 4% and women by nearly 7%. Additional people updates include:

• Promotions: Made over 2,800 internal promotions, with 73% going to people of color and 56% going to women, almost double the number of promotions from 2020.
• Wage increases: Increased wages by $9 million for Shack-level team members and created 1,522 jobs (79% people of color, 54% women) from store openings.
• Workplace flexibility: Continued four-day work week pilot for hourly team members in select locations to provide a more stable schedule and support a better work life balance.
• Expanded parental care benefits: Increased paid leave to 12 weeks for birth parents and four weeks for non-birth parents.
• Career advancement: Continued career advancement through the Shift Up program providing team members with training to become senior leaders. Launched new career training and development programs that support women and people of color.
• Workplace diversity: Earned a 100% score on Human Rights Campaign's Corporate Equality Index, further underscoring support of the LGBTQ+ community in the workplace.

"We're dedicated to doing the work it takes to be a company that values diversity and encourages inclusion, not only in our words, but in our actions, as we bring our mission to Stand For Something Good to life each and every day," said Idris Stover, director of Diversity, Equity & Inclusion at Shake Shack. "Ensuring equal opportunity for success, diversity in leadership at all levels and a culture that embraces different backgrounds and ideals has been the focus of our efforts since day one."

Sourcing premium ingredients from best-in-class suppliers

Over the years, Shake Shack has remained committed to sourcing high-quality, real, premium ingredients that are humanely raised and source verified, and 2021 was no different. Key updates are below:

• Bought 54,824 pounds of regeneratively ranched beef from an Ecological Outcome Institute Verified ranch in Northern California.
• Sold 153,900 Veggie Shack patties at Shack locations made using real veggies and grains.
• Served sustainably produced beer using 100% windmill powered energy with partner Brooklyn Brewery.
• Recycled 1.75 million pounds of waste oil in partnership with Restaurant Technologies Inc.
• Retired the use of glass bottles and through the Shack wine program, using kegs and aluminum cans eliminated 180,000 pounds of carbon dioxide equivalent (CO2e). Since 2018, Shack has sold 2,400 kegs and 350,000 cans of wine.

"Shake Shack's focus on premium ingredients, thoughtful sourcing and animal welfare has always been core to who we are," Jeffrey Amoscato, SVP of Supply Chain and Menu Innovation at Shake Shack, said in the release. "We're committed to learning from and collaborating with our peers and the broader industry to better understand barriers and potential solutions for accelerating improvements more broadly across the food industry."

Tracking and reducing environmental impact

In 2021, Shake Shack transitioned to-go bags to 100%-recycled fiber, including 95% post-consumer content. It also launched a pilot of plastic-free and carbon-negative straws and cutlery in several markets as well as installed solar panels at five locations with more on the way, saving the equivalent of 1,427 gallons of gasoline or 29 barrels of crude oil per year. In addition, 30% of Shack openings in 2021 realized a 20% YOY reduction in Kitchen Exhaust System energy usage.

The chain is now evaluating the inclusion of electric vehicle charging stations in future site designs, and all locations have an eco-friendly connection using reclaimed materials including furniture and structures, digital menu boards and more energy efficient equipment in kitchens and restaurants, said Andrew McCaughan, chief development officer.

"We are looking to better understand and ultimately reduce the environmental impact of operating our brick-and-mortar restaurant locations, everything from energy and water usage to air purity and transportation footprint," he said. "Energy efficiency has become a key driver in reducing our environmental impact, and something we will continue to evaluate."