• by Teresa Buyikian , August 4, 2023

Shake Shack reported substantial growth in its 2003 Q2 financials, along with a look at the success of its self-service technology.

Total revenue for the shake and burger chain was $271.8 million, up 17.8% over the Q2 2022. System-wide sales were $426.3 million, up 21.2% versus 2022. Same-Shack sales were up 3.0% versus 2022.

The chain has been rolling out its kiosk concept, where in-house diners order food from a kiosk rather than an employee, which proving to be hugely successful. Close to 250 restaurants use the self-service tech, with 2023 Q2 seeing an increase of almost 10% in average check for kiosk-ordered meals compared to front-counter sales.

“While kiosks are a key driver of the guest experience and our sales and profitability improvement strategy, we've only begun to explore the potential full capabilities of kiosks, such as upselling and connecting personalized marketing across channels,” Chief Executive Officer Randy Garutti said on the earnings call. “Our kiosks …will be in nearly all Shacks by the end of the third quarter, a full quarter ahead of our expectations” and “we doubled our kiosk sales year-over-year as guests return in (store) and choose this as their preferred experience.”

CFO Katie Fogertey added that Shake Shack's margin outperformance began with strategic pricing, increasing the difference in prices across markets to align with regional and guest demographics.

Unstable food pricing still remains a concern. “As margin trajectory continues to improve, beef costs remain the unknown variable,” commented Nick Setyan, Wedbush Securities managing director, equity research, restaurants, on Shake Shake’s report.

The New York-based chain launched its new plant-based menu items in May, including the “Veggie Shack” burger, a nondairy chocolate shake and a nondairy chocolate frozen custard.

Thus far in 2023 Shake Shack has opened 10 new domestic company-operated locations, as well as 13 new licensed Shacks, including locations in Thailand and China. Since the original Shack opened in 2004 in NYC’s Madison Square Park, the Company has expanded to more than 480 locations system-wide, including over 310 in the U.S. and the District of Columbia, and about 170 international locations across London, Hong Kong, Shanghai, Singapore, Mexico City, Istanbul, Dubai, Tokyo, Seoul and more.