Shake Shack to launch kitchen innovation lab in Atlanta in 2025

USA – During an earnings call on February 20, CEO Rob Lynch announced that Shake Shack will launch a kitchen innovation lab near its new support center in Atlanta later this year.

Lynch stated that the new innovation lab will lead to faster rollouts of fresh store formats and may boost cash-on-cash returns.

More efficient and faster buildouts will support the chain’s goal of growing from 330 U.S. units to 1,500 company-owned restaurants. The company plans to reduce buildout costs to US$2.2 million from US$2.4 million in 2025.

Previously, Shake Shack built new restaurants using various models to test optimizations, a process that often took too long.

The company is now considering new equipment such as hot holders, fryers, shake machines, and other tools that can reduce service times.

These innovations will specifically target the drive-thru, where long wait times have been a challenge.

Drive-thru locations now account for about 10% of the system, following their introduction in 2021, according to Lynch. Optimizing store formats will further help increase speed of service.

Last year, the chain reduced wait times by one minute, and Lynch believes they could improve service by another minute.

However, during lunchtime, nearly all New York City restaurants experience lines of up to 10 people, which can deter customers.

The addition of the innovation lab and a new support center represents a shift away from a centralized headquarters.

The chain will now operate three support centers, including existing facilities in New York City and Hong Kong, plus a new Atlanta center.

The Atlanta center will help attract diverse talent from across the country.

Lynch clarified that the team in New York is not moving to Atlanta; instead, the new office will open up additional opportunities.

Justin Mennen has been hired as chief information and technology officer and will be based in Atlanta. The Atlanta office is near 60 universities within a two-hour drive, making it a hotbed for restaurant operations talent.

This investment in Atlanta contrasts with trends among other chains, such as Yum and In-N-Out, which are consolidating their headquarters. For example, KFC U.S. will move its headquarters from Kentucky to Plano, Texas.

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