Operations

Shake Shack makes a big delivery push

A deal with Postmates gives the chain’s customers free delivery this week.

Postmates customers can get their Shake Shack delivered free this week.

The San Francisco-based delivery service on Monday said it would deliver Shake Shack for free across 17 U.S. markets this week, through Sunday. The service promises to deliver Shackburgers and other products in 35 minutes or less.

For Shake Shack, the collaboration is temporary. The chain, which operates more than 90 U.S. locations, has been carefully testing delivery in recent months, using various delivery services. The New York City-based fast-casual burger chain does not have an exclusive, permanent deal with any specific provider.

In September and October, for instance, the company tested delivery with services DoorDash and Caviar.

Yet it’s clear that Shake Shack and its CEO, Randy Garutti, have high hopes for delivery as a way to expand its restaurants’ reach.

“It’s very clear people want delivery,” Garutti said in November. “We are working patiently to make sure we continue to test and learn and see who the best partner or partners, depending on the region.”

Postmates was launched in 2011 and currently delivers in more than 250 cities. The service typically charges customers a flat $3.99 service fee for its “partner merchants.” The company also offers an unlimited, $9.99 per month subscription.

Delivery is one of the biggest trends in the restaurant industry. Numerous chains, from the giant quick-service burger chains McDonald’s and Wendy’s to upscale casual concepts like Cheesecake Factory, are working on adding the service to their restaurants nationwide.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Despite their complaints, customers keep flocking to Chipotle

The Bottom Line: The chain continued to be a juggernaut last quarter, with strong sales and traffic growth, despite frequent social media complaints about shrinkflation or other challenges.

Operations

Hitting resistance elsewhere, ghost kitchens and virtual concepts find a happy home in family dining

Reality Check: Old-guard chains are finding the alternative operations to be persistently effective side hustles.

Financing

The Tijuana Flats bankruptcy highlights the dangers of menu miscues

The Bottom Line: The fast-casual chain’s problems following new menu debuts in 2021 and 2022 show that adding new items isn’t always the right idea.

Trending

More from our partners