A MCDONALD’S rival is making moves to improve efficiency with a new investment.
The burger chain seeks to improve wait times for consumers and streamline its processes at locations nationwide.
Thanks to a kitchen innovation lab opening soon, Shake Shack will likely make good on its goals.
CEO Rob Lynch confirmed that the lab is being built, with a finish date sometime later this year at the company’s support center in Atlanta, Georgia, per a recent earnings call.
Inside the lab, staff will be testing a variety of new equipment and optimization endeavors, helping management refine them before they’re implemented.
“While you’re trying to open up a new restaurant in an optimized way [and] drive performance, you’re also testing ideas and thinking about maybe this could work, maybe that will work,” Lynch told investors.
“The whole idea behind the kitchen innovation lab…is we’re building a modular lab that’s going to allow us to test and optimize all of our kitchen equipment and buildouts, and flows and processes.”
New equipment tests include updated fryers, hot holders, shake machines, and additions to the drive-thru.
Drive-thru wait times at Shake Shack have been called out by customers before.
Still, only about 10% of the company’s footprint has them.
MINUTE GOAL
He added that the result will ideally be faster service times for customers, “cutting wait times by two minutes” or more, leading to an uptick in satisfaction and output for Shake Shake.
In 2024, the company cut wait times by one minute.
That will subsequently lead to more returns and even streamline the buildout of new locations.
In the past, Shake Shack has added restaurants and tested different models and equipment, but it’s been a longer process.
CONTINUED GROWTH
Assuming the innovation lab improves efficiency, Shake Shake can then continue expansion plans from its current 330 restaurants to at least 1,500 that are all company-owned at a quicker pace.
Lynch and executives are also seeking to cut back on the buildout costs, with $2.2 million per restaurant instead of $2.4 million.
The whole idea behind the kitchen innovation lab…is we’re building a modular lab that’s going to allow us to test and optimize all of our kitchen equipment and buildouts, and flows and processes.
Rob LynchCEO of Shake ShackShake Shack is doing well fiscally, with a lot of foot traffic especially in areas like New York City, which is why Lynch noted speed as of the utmost importance in 2025.
“At $4 million [Average Unit Volumes], we’re doing a lot of business,” he explained.
“We have a lot of traffic and lines, so speed is a big factor for us.”
“To take a whole minute off speed of service in one year, that’s just not something that is possible at the [Quick Service Restaurants] of the world,” Lynch continued.
Shake Shack is also splitting up its headquarters into three support centers — the one in Atlanta with the innovation lab, and two others in New York City and Hong Kong.
KFC also recently announced that it would be moving its headquarters out of Kentucky after a century.
While Shake Shack seeks to improve speed for customers, it also recently introduced a “next level” recipe for some fried favorites.
It also faced backlash at the end of last year as it was dubbed the most expensive fast food chain in the United States.
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