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