Shake Shack CEO on Pricing Power, Productivity, and Airport Service

Mitigating Inflation with Productivity

• 🥩 Beef prices have increased, but Shake Shack is addressing this challenge through significant productivity gains.
• 📈 Operating margins have improved from around 20% to nearly 24% due to these productivity efforts.
• 🛠️ The company is actively working within its supply chain to find additional productivity measures to combat inflation.

Pricing Power and Strategy

• 💰 While pricing power remains available if needed due to inflation, Shake Shack is not dependent on it as a primary strategy.
• 💡 The focus is on internal efficiencies rather than solely relying on price increases to manage costs.

Improving Airport Operations

• ✈️ Acknowledging customer feedback about long lines at airport locations, Shake Shack is working with its licensed partners.
• 🚀 Improvements in speed of service have been achieved in company-owned restaurants through process, equipment, and labor management solutions.
• 🤝 Support is provided to airport partners, recognizing the unique challenges of operating in that environment, with a commitment to getting better.