The global pandemic has changed a lot of things, especially in the U.S economy. Now that people are forced to stay at home, only essential stores and places are open for the public.
Although food is essential, the restaurant industry is one of the most affected sectors during the pandemic. Restaurants are either closing or adapting to a new type of service, such as delivery and takeout.
Shake Shack is one of the most popular fast-food chains in the U.S. For the restaurant to keep its customers and stay in business, they shifted to a digital platform.
The Shake Shack app will feature direct delivery soon for its customers. The restaurant is not the first to do so since Panda Express, and Coffee Bean & Tea Leaf also launched the same feature on their apps.
Direct delivery is viral these days. Now that people stay in their homes, they can order food with less hassle via the Shake Shack app. This delivery feature is beneficial for both the restaurant and its customers compared to ordering through third-party delivery apps.
When restaurants have direct delivery on their app, they can pay lower commission fees to third-party delivery. In the U.S, the most popular third-party delivery is UberEats and DoorDash.
On the other hand, ordering food through the restaurant's app will reduce stress and hassle for customers. All they need to do is click, order, and receive the Shake Shack items at their doorstep. The app also lets customers save their order data for their next delivery.
In a recent earnings call with Shake Shack's CEO Randy Garutti, he announced that the company would establish drive-thrus in 2021. Shake Shack never had drive-thrus in the past, and it's high time for them to expand to such an ordering option.
Garutti did not mention any exact location of where the company will add the drive-thrus. However, he mentioned that the fast-food chain is planning to drive suburban high-traffic in all locations.
Also, churning into a drive-thru setting is the chain's way of responding to the pandemic's effect on the restaurant industry.
Although there are Shake Shack branches that have opened for dine-in, it still follows strict COVID-19 protocols. Social distancing and sanitization are highly implemented, making suburban locations quick to recover.
Other companies shifted to a drive-thru setting as well. Dunkin' and Chipotle are one of the companies who are using the strategy since the pandemic began. They allocated lanes for free orders. The drive-thru lane became very helpful and has kept its business on track despite the pandemic.
Shake Shack's second-quarter report showed a 49% increase in sales. With that, the company shows they are trying to recover and slowly going back on track. Shifting to a digital platform and delivery options made them survive the stats.
Garutti also mentioned that the drive-thru plan was only a portion of their new strategy to attract customers. He also revealed that Shack Tracks, the company's ghost kitchen in the United Kingdom, also included curbside pickup as an order option.