Dive Brief:
- Shake Shack has improved its speed of service and order accuracy year over year for five consecutive quarters, CEO Rob Lynch said on a Q1 2025 earnings call Thursday.
- The restaurant is targeting further improvements to the drive-thru experience with digital ordering boards that feature clear combo options to reduce the time it takes to order. The combo boards are live in eight restaurants and will roll out to 40 by the end of May.
- Early results are promising, according to Lynch. Over the past month, the drive-thrus with combo digital menu boards have reported significant improvements in ordering time, speed of service, accuracy and customer satisfaction.
Dive Insight:
Shake Shack’s leadership is pleased with the progress the company has made on its pursuit of better experiences, but the restaurant isn’t resting on its laurels.
“We are focused on maintaining the high levels of guest service that we have delivered over the last six months,” Lynch said. “While we've gotten more productive, we've also increased our guest satisfaction. That is our No. 1 priority.”
One ongoing challenge is throughput. Shake Shack reduced the average order wait time by one minute last year and plans on reducing that number further.
Drive-thru combos are primarily designed to help further close the speed gap with competitors, though they are helping the company deliver on the value proposition as well, according to Lynch.
“It's been a long time coming for this brand on drive-thru. We've tested a lot of different models to try and improve a unique drive-thru dynamic,” Lynch said. “I mean, the reality is it takes us longer to make our food than a lot of our competitors, and our guests freak [out] at those other competitors as well.”
Financial results for the quarter were mixed. Revenue rose 10.5% year over year to $320.9 million, while comparable sales were up 0.2%, according to a company earnings report. However, traffic fell 4.6% year over year, which CFO Katie Fogertey attributed to bad weather and unspecified industry pressures.
Shake Shack plans to introduce smaller formats, improved layouts and new labor processes to improve customer experience, according to Lynch. The company is also looking into expanding combos into other channels, such as kiosks and in-restaurant ordering options — but not before it has time to study the impact combos have on drive-thru.
“We are getting better every day and uncovering ways to continue to improve the guest experience, push the envelope on our culinary leadership, outperform what guests expect from us and all while reducing our operating and build costs,” Lynch said. “I'm extremely excited about the potential that lies ahead.”
