shake shack
TRANSCRIPT
Insights & Opportunity Analysis
Lydia, Rachel, Chevara, Christian & Blake
31 March 2015
AGENDA • Current Situation • Approach • Social Media Listening Tools • Competitor Analysis • Key Insights • Recommendations
2000 - 2003 Seasonal hot dog cart in Madison Square Park
2004 Restaurateur Danny Meyer wins bid to open
permanent kiosk & expands menu
2015 Went public | $1.6 billion brand 63 locations around the world
Bottom Line: “An Incredible Accident”
THE STORY
Differentiators ● Fast-Casual Dining experience with a focus on natural, higher quality
ingredients that are not frozen and/or processed. ● Serves assortment of options including burgers, hot dogs, frozen custard,
shakes, beer, and wine. ● Focus is on better ingredients, hospitality, and the dining experience.
Target Audience • Health Conscious Consumers • Experience Oriented Diners • Fast-Food Defectors
POSITIONING
AGENDA • Current Situation • Approach • Social Media Listening Tools • Competitor Analysis • Key Insights • Recommendations
Competition
Brand
Category
Competition
Key insights
that connect
to the heart of
the consumer
Consumer
APPROACH
Consumer
AGENDA • Current Situation • Approach • Social Media Listening Tools • Competitor Analysis • Key Insights • Recommendations
LISTENING TOOLS
KEYWORD BREAKDOWN BRAND COMPETITORS CATEGORY
Shake Shack ShackBurger Frozen Custard ShackMeister USHG Madison Sq Park
Five Guys Lucky’s Famous Burgers In-n-Out Smashburger
Chipotle Panera
Fast food Fast casual dining Burgers Burgers west coast Fast food chains Hamburgers Fries Milkshakes Healthy fast food Fast food NYC Shake Shack Burger
New/secret menu
BRAND HIGHLIGHTS Media Mention
• Most consumers love this brand and crave for more locations • Burgers and French fries are most mentioned Shake Shack products • Major public media more focused on the IPO and first quarter revenues
COMPETITOR HIGHLIGHTS
• Five Guys mentioned the most above, Shake Shack, Smashburger and In-n-Out
• These days the hungry consumers have other restaurants to choose
from, many of whom have built on Shake Shack’s comfort food formula or, in some cases, gone in a whole new, wholly delicious direction.
Google Trends Upscale Burger Chains Imitations
• Customers are craving more locations/stores of Shake Shack • People want a more flexible menu • Vegetarian choices are unmet needs • Competitors are heading to a healthy and wholly delicious direction
to compete
• Long history and more locations are advantages of main competitors (Five Guys, in-N-out and Smashburger) – they can leverage culture because they are established
• Some restaurants are heading to promote premium burgers as a cuisine not just fast food
KEY LEARNINGS (BRAND & COMPETITOR)
CATEGORY HIGHLIGHTS
FAST FOOD NYC
FAST FOOD FAST CASUAL DINING
SHAKE SHACK BURGER
HEALTHY FAST FOOD
BURGERS EAST COAST
● Customers want healthier food choices (ex: salad, juice) ○ Verbatim: “They claim to be organic and healthy, but their
burgers are too greasy.”
● Shake Shack is more about fast casual dining experiences, offering customers to spend time with their friends, families, or dates - enjoy the experience, and view as a trendy restaurant
● New flavors or secret menus create BUZZ!
KEY LEARNINGS
AGENDA • Current Situation • Approach • Social Media Listening Tools • Competitor Analysis • Key Insight • Recommendations
LOCATIONS AVG. CHECK $
63 $14.50
1000 $14
3 $11
300 $13
300 $7.20
1700 $11.50
1800 $5
COMPETITION BY THE NUMBERS
Modern, Roadside
Burger
Homemade, Simple menu
Classic, Limited Menu
Retro, Reinventive, Secret Menu
They all offer burgers, fries, shakes
Focuses on innovative burgers + flavors
“Better Burger”
BRAND PERSONALITIES
All have really strong Word-of-Mouth and loyal customers
TV commercials
Curates great content
Rewards program
KEY MARKETING TACTICS
POSITIONING
What we do (products& services)
How we do it (skills & expertise)
Why we do it (purpose & values)
Functional
Hig
h pr
esen
ce
Smal
l pr
esen
ce
?
SWOT STRENGTHS WEAKNESSES
• Well known/Awareness • Quality products • Appealing and modern look and feel
(packaging and identity) • Trailblazers in fine casual dining
within the burger industry • Green & community oriented
• Fast food associations are negative • Quality control/consistency • Consumer price complaints • Queuing (too long) and seating
issues (too little)
OPPORTUNITIES THREATS
• Healthier offerings • Leverage social media/WOM
(earned content growth)
• Bicoastal rivalry with In-n-Out (Recently expanded to Florida)
• Fast casual and health fast food focused competition growing
• Commodities pricing increase leads to consumer paying the price
AGENDA • Current Situation • Approach • Social Media Listening Tools • Competitor Analysis • Key Insights • Recommendations
KEY INSIGHTS (THEMES) • “Better burger movement”
o Premiumization (ingreident/presentation/special offers) o Emphasize their locally sourced products
• “Less about food, more about experiences”
o In-store– design/layout o Engaging activities – mobile app o Hospitality (be part of the Shake Shack experience)
• “Modern Munching” o Food alternatives – chia seeds, quinoa etc.
• “Diet Dilemma” o Health trend o Shakes to Smoothies
AGENDA • Current Situation • Approach • Social Media Listening Tools • Competitor Analysis • Key Insights • Recommendations
RECOMMENDATIONS 1. Shake Shack Stories
– Leverage the Shack Cam – Mobile app – Encourage in App and online video/image based postings with
incentives – Live stream on website – Currently only camera at Madison Square Park – need for
expansion
video: http://www.youtube.com/watch?
v=nRSKpJtec_w
RECOMMENDATIONS 2. Menu • New flavours and secret menus available through the
mobile app • Streamline ordering process via app (customization –
make your own burger) • Develop vegetarian and alternative protein choices
RECOMMENDATIONS 3. Reposition • Not just about healthy ingredients – potentially position
as something geared towards family and friends coming together and connecting over a meal
• ‘Together Again’/’Perfect Combination’ concept –
creating meaningful connections through a traditional American comfort food dining experience
RECOMMENDATIONS 4. A culture of consciousness (health focus) • Not only developing the menu, but an all-round focus on
the benefits of certain offerings • E.g. Post work out meals, calorie counting options • Personalization and customization of meals can be
encouraged
Thank you