“That tech integration is going to be crucial for us, right?” he said.

Garutti said Shake Shack wants to “really try to pair up that real delivery courier with real how busy are we at Shake Shack in the moment.” Shake Shack can with this deal, to some extent, oversee the flow of delivery business as it happens. Garutti added the deal was designed around seven factors: long-term revenue opportunity technology integrations and functionality guest services capability geographic footprint guest data insights marketing capabilities and overall economics.Īlso, how can Shake Shack satisfy the added order volume and not bottleneck already buzzing stores? One answer is a design the companies worked on with Grubhub’s “Just in Time” technology, which aims to direct drivers to the moment an order is ready. And, even then, Shake Shack expects to sacrifice some profitability.įirstly, this arrangement will be a direct-to-POS integration for menu syncing and order submission, the brand said.

As for what drew the 237-unit chain (157 domestic, 140 of which are company run) to Grubhub, it comes down to some of the concerns operators across the lexicon face in regards to the disruptive force that is delivery. Shake Shack trialed delivery via various platforms over the past two years. INSIDE SHAKE SHACK’S EMPLOYEE RETENTION STRATEGY Shake Shack chief executive Randy Garutti said the brand reached an agreement that benefits both sides of the table, although he admitted there would be some volatility in delivery sales throughout 2019 as it transitions from multiple vendors to the exclusive partnership. The service is piloting at a “small number” of corporate units, with nationwide rollout expected gradually over the next two to three quarters.

The aggregator, and its New York City Seamless brand, will become Shake Shack’s national delivery partner. The burger chain announced Monday-ahead of its second-quarter review-that it’s struck an integrated deal with Grubhub. Yet a company growing this quickly, and one as invested in digital evolution as Shake Shack is, couldn’t keep one leg out of the water for long. It was just December when Shake Shack voiced a hesitant take on delivery, saying its products were “not intended to be eaten half an hour after they were cooked.”

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