Can Shake Shack Customized Marketing Cut It

Sure, Shake Shack sales volume per store are impressive today averaging $4.6 Million per unit in Q4 2018.  They did that by offering a ‘better burger’ and you can get anywhere else.  Ok, so now what as Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

The problem is Shake Shack is now running into the same problem Whole Foods, Pappadeaux Seafood Kitchen, and all other specialty food retailers find after several years of successful growth. Shake Shack caters to an urban lifestyle consumers with more disposal income and consumers with more exposure to fresh food fare according to Johnson; the problem is those consumers are limited in numbers. 

So, when Shake Shack announced that will be rolling out two food trucks—one in the greater tri-state area (NY, NJ, CT + PA) and one in the Atlanta metro area we ask Why? Do they think they can sustain growth in the suburbs?  That is highly unlikely unless they reduce the average check size substantially.

Sure, fans of Shake Shack can book the truck at www.shakeshack.com/truck by simply filling out the form with their name, email address and event details. The Food Truck menu is customizable based on the event, and can include Shack classics like the ShackBurger, Chick’n Shack, ‘Shroom Burger, fries and shakes. Pricing is based on the duration of the event and the number of estimated people in attendance. 

We ask will that drive sales, build buzz, or simply put Shake Shack in the same league as Red Robin and Burger King?  What is Shake Shack’s goal? Drive Growth, Drive Profits, Drive Brand Buzz and at what cost?

The truth is the next 15 years growth in urban communities will outpace that of the suburbs for most branded food growth according to Johnson.  Who, continued saying urban brands growth needs to be focused on urban customers.  

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, www.Linkedin.com/in/grocerant/ or www.twitter.com/grocerant/