Although
"Our message across the company has been to lead with hope, while acting on reality, and to make the necessary choices today to ensure our strength and growth continues for many years to come," CEO
Those steps included:
- Laying off or furloughing about 20% of its home office staff with remaining corporate workers taking salary reductions.
- implementing a hiring freeze across the company and is reviewing operating hours and future potential closings.
- Pausing ew design and construction of future Shacks with the exception of a handful where construction is near complete
- Pausing new openings.
-
Focusing on the company's pre-ordering convenience of its Shack app and web channels and adding additional delivery partners, including
Postmates ,DoorDash ,Caviar and Uber Eats , in addition to its original partner,Grubhub , which the chain had a former exclusivity deal. - Launching cook-at-home ShackBurger meal kits in collaboration with Goldbelly.
- Suspending non-essential capital expenditures.
- Deferring Board of Directors cash compensation.
-
Assessing the stimulus bill to see how it may benefit
Shake Shack and its team members
"Over the last two weeks, as mandated shutdowns and stay at home orders have gone into place across the country, sales at all Shacks have been dramatically reduced," he said. "Compared to last year, excluding Shacks that are temporarily closed, sales across our domestic company-operated Shacks are currently down between 50% and 90%, averaging down approximately 70% in total."
Same-Shack-sales were down about 2% through the first two months of the First Quarter of 2020, in line with previous guidance. Following the outbreak of the coronavirus in the US in early March, however, SSS started to decline significantly, with the impact becoming more acute as the month progressed, resulting in
Global business is down
The company’s licensed Shack business has also been deeply affected.
Beginning in
Throughout the
Financial update
On
The company drew down on its revolving credit facility of
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