Shake Shack Pursues Expansion as UK Market Conditions Improve
Posted by Emily on 3rd Sep 2024
Shake Shack is gearing up for further expansion in the United Kingdom as the trading environment shows signs of improvement. The company, known for its high-quality burgers and vibrant dining experiences, has seen its UK sales edge closer to pre-pandemic levels, prompting plans for new site openings.
Shake Shack operates
17 restaurants across the UK, predominantly concentrated in London. A new location is already planned for this year, complementing the recently launched outlet at St Pancras International, which opened earlier this summer.
The UK arm of Shake Shack, operated by Diverse Dining under a master franchise agreement, has reported a notable increase in sales. In its latest financial results, the company announced a revenue of £49 million for 2023, up from £44.2 million in the previous year. Additionally, the group's earnings before interest, taxes, depreciation, and amortisation (EBITDA) turned positive, improving from a £4.2 million loss in 2022 to a £0.5 million profit in 2023. The group's losses were also significantly reduced, narrowing to £764,000 from £4.6 million the year before.
Diverse Dining attributed this financial turnaround to implementing a stronger digital presence within the marketplace. The group also focuses on developing its omnichannel strategy to better connect with its customers across various platforms.
As a result of these positive trends, Shake Shack has announced its intention to actively pursue additional sites within its current trading area, signalling confidence in the UK market's recovery.
Earlier this year, Shake Shack underwent a significant leadership change, with Rob Lynch, former CEO and president of Papa John's, taking over as CEO and board member. He succeeded Randy Garutti, who announced his retirement late last year.
Shake Shack has expanded its partnerships with significant delivery platforms to enhance its delivery services. Previously working exclusively with Deliveroo, the brand has now partnered with Just Eat and UberEats to further broaden its reach. Colin O'Kane, Managing Director at Shake Shack UK, commented on this strategic move: "We're doubling down on our commitment to be accessible to our guests, both old and new. Since we first opened in London, we've built our brand around creating community gathering places and becoming the next generation's burger joint. Our partnership with Deliveroo, and now Just Eat and UberEats, reflects our commitment to expanding that connected community."
Shake Shack, originally founded by renowned New York restaurateur Danny Meyer in 2001, has grown into a global brand with a presence in around 20 countries and over 400 restaurants worldwide.
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