Shake Shack's New Concept Is Taking Advantage of a Takeout Trend in QSR

From pick-up cubbies to Chipotlanes, QSR franchise brands have spent a lot of time this year finding ways to appeal to the takeout crowd. Now, Shack Shake is joining the team with a 2,663-square-foot, takeout-focused store that includes two separate entrances—one for digital orders made from the Shack App, web and delivery and another entrance for in-store ordering. 

As online ordering booms, Shake Shack certainly isn't the only chain testing digitally centric stores. Starbucks rolled out a pickup-only store in the fall while Sweetgreen decided to get rid of its traditional assembly line at one New York store in favor of digital kiosks and concierges who take orders via iPad. Cava plans to open five pick-up-by-car locations this year where guests can use the Pick-Up By Car option on the restaurant’s app or website. 

With the addition of this takeout-friendly location, Shake Shack now has five different formats, which include food court units, small formats, large formats and full expressions of the brand. The burger brand is also appealing to the growing demographic of on-the-go business traveler customers by building alternative locations, including opening units within airports, travel centers, stadiums and even a food truck as part of its expansion plans.

According to a study by 6t-bureau de recherche, urban areas and cities like New York are an ideal place to test these formats, with 90% of New Yorkers having ordered a meal for delivery and 93% possessing a smartphone. The study also found that a third of New Yorkers eat out at restaurants less since they started using third-party delivery apps. 

As sit-down restaurant business declines, takeout-focused franchise concepts like Shake Shack's are bound to become a much more common sight in cities and beyond.