What Happened: After successfully testing its delivery service in Miami and New York, Shake Shack will now offer its menu for delivery nationwide, according to a CNBC report. The deal with Uber Eats expands upon Shake Shack’s Shake Track digital service that allows customers to preorder from its menu for pick-up through the Shack app.
How It Works: Customers who order through Shack app will receive free delivery on orders over $35 and can track the progress of their order in real time. For orders under $35, a 99 cent delivery fee will be charged.
Customers who order through the Shack app will also receive a complimentary order of fries through March.
Why It Matters: Like many businesses who traditionally host customers inside their establishments, Shake Shack has had to pivot its business to accommodate changes in consumer behavior brought on by the pandemic.
“A year ago, we were a were a 20% digital company, and 80% in person, and overnight we switched to 80% digital, 20% in person,” said Shake Shack CEO Randy Garutti in the report.
Shake Shack’s switch to digital services has helped it to grow as well. The company says added 2 million new first-time customers from March 2020, when the COVID-19 pandemic took hold in the U.S., through to January 2021.
When Shake Shack reported fiscal year 2020 results on Feb. 25, it wrote "fiscal 2021 through the first three weeks of fiscal February 2021, company-owned app and web sales increased approximately 300% compared to the same period in the prior year."
What’s Next: Shake Shack appears to be betting the switch in customer behavior is here to stay, even once restrictions are lifted, as this move comes at a time when many believe the COVID-19 pandemic is slowly coming to an end. Once diners are able to eat in, Shake Shack hopes its delivery service will have exposed new customers to its menu.
For its marketing strategy, the company plans to use data it collects about customers' food preferences when ordering from the app.
(Photo: Shake Shack)
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.