• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Skip to navigation
Close Ad

The Spoon

Daily news and analysis about the food tech revolution

  • Home
  • Podcasts
  • Events
  • Newsletter
  • Connect
    • Custom Events
    • Slack
    • RSS
    • Send us a Tip
  • Advertise
  • Consulting
  • About
The Spoon
  • Home
  • Podcasts
  • Newsletter
  • Events
  • Advertise
  • About

Shake Shack Pivots to Drive-Thru, Adds Direct Delivery

by Jennifer Marston
July 31, 2020July 31, 2020Filed under:
  • Business of Food
  • Delivery & Commerce
  • Featured
  • Restaurant Tech
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to email this to a friend (Opens in new window)

Shake Shack said on its earnings call yesterday that it will start opening restaurants with drive-thrus, with the first of them slated to open in 2021. The chain didn’t name a location, though CEO Randy Garutti said on the call the chain plans ”to lead with traditional suburban high-traffic quarters.”

This is pivot for Shake Shack, a New York City-based chain that’s historically served urban settings. And unsurprisingly, the move is largely in response to the pandemic’s effect on in-house restaurant dining. Garutti said on the call that fewer than half of all Shake Shack’s have opened their dining rooms, and that while urban Shacks have been heavily impacted by social distancing restrictions, suburban locations are recovering faster.

The company released a rendering of the new drive-thrus (see above) that suggests these would have dedicated lanes for mobile orders as well as traditional ones. It’s a strategy already in use by chains like Dunkin’ and Chipotle. 

Shake Shack had a 49 percent nosedive in same stores sales for the second quarter, though that number is slowly improving, the company said. Digital and off-premises are a big reason the figure wasn’t lower.

And drive-thru lanes are just one piece of that off-premises strategy. On the call, Garutti highlighted the brand’s recent efforts, which include curbside pickup, Shack Tracks, a ghost kitchen in the U.K., and increased focus on digital ordering. In the second quarter, sales through the brand’s own app “more than tripled” compared to the same period last year. 

Perhaps most important, Shake Shack will start offering direct delivery via its own digital properties. Garutti plainly stated that the motivation behind this move is “keeping guests within our native infrastructure and deepening our ability to connect directly with them over time.” 

Direct delivery is becoming an increasingly important part of major restaurant chains’ digital arsenal, and is already in use by Panda Express, the Coffee Bean & Tea Leaf, and others. The benefits of direct delivery, where orders go straight to a restaurant’s own app, rather than getting funneled through a third-party delivery app, are obvious. Restaurants pay lower commission fees, since third parties like Uber Eats are only delivering the food, not processing the order. And brands retain valuable customer data they would otherwise not be able to access. 

None of Shake Shack’s announcements this week are particularly eyebrow raising, which is in itself an important point. Every day, off-premises gets further entrenched in consumers’ minds as the de facto restaurant format for quick service and fast casual. Adding drive-thru or curbside, doubling down on digital, and exploring direct delivery are quickly becoming the standard for those chains that can afford them. Those standards were emerging long before the pandemic arrived, and will exist long after it leaves.  


Related

Get the Spoon in your inbox

Just enter your email and we’ll take care of the rest:

Find us on some of these other platforms:

  • Apple Podcasts
  • Spotify
Tagged:
  • digital ordering
  • drive-thru
  • off-premises ordering
  • Shake Shack

Post navigation

Previous Post Amazon Q2: Online Grocery Sales Tripled Year-Over-Year
Next Post Wawa Goes Beyond Standard Convenience Store Fare With a Plant-Based Breakfast

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Get The Spoon in Your Inbox

The Spoon Podcast Network!

Feed your mind! Subscribe to one of our podcasts!

After Leaving Starbucks, Mesh Gelman Swore Off The Coffee Biz. Now He Wants To Reinvent Cold Brew Coffee
Brian Canlis on Leaving an Iconic Restaurant Behind to Start Over in Nashville With Will Guidara
Food Waste Gadgets Can’t Get VC Love, But Kickstarter Backers Are All In
Report: Restaurant Tech Funding Drops to $1.3B in 2024, But AI & Automation Provide Glimmer of Hope
Don’t Forget to Tip Your Robot: Survey Shows Diners Not Quite Ready for AI to Replace Humans

Footer

  • About
  • Sponsor the Spoon
  • The Spoon Events
  • Spoon Plus

© 2016–2025 The Spoon. All rights reserved.

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.