Although
Drive-up windows allow guests to collect app and web preorders from a designated window without leaving their vehicles, while curbside pickup for app orders allows them to order on the app and park in a designated curbside spot at the Shack. Within the app, they'll share their car color and type, and
Walk-up windows will also allow guests to pick up pre-orders without stepping inside the Shack.
At least eight shacks will have the Shack Track design by the end of the year, and the chain's curbside pickup, which is being tested at 10 Shacks, will extend to 50 locations by the end of the third quarter, Castranova said.
"We have already seen strong adoption and success at pilot shacks for our digital curbside pickup," she said. "Of orders with the curbside ability, we climbed from 22% of orders to 29% in just two weeks. While there's a mix of usage, in some of our pilot Shacks we are seeing over 40% usage of the curbside feature."
For the Shack, digital is where it's at
Q2's silver lining was the company's strong digital channel performance, which made up 75% of total Shack sales and more than doubled compared to the first quarter of 2020, Garutti said in a company press release. Its native web and app channels more than tripled compared to the same period last year.
For fiscal July, for example, digital sales represented 62% of total Shack sales, retaining over 90% of the digital sales that were achieved during fiscal May, even as in-Shack sales have gradually returned. Also, the company reported more than 800,000 first-time purchasers via its own digital channels since early March — nearly four times higher than in the same period last year.
"Despite the challenging environment, total sales and average weekly sales have shown continued improvement throughout the second quarter and the third quarter through
Garutti said
"We have a strong identified pipeline of leases in negotiation and believe additional and improved development opportunities may be available over time due to the impact of COVID-19 on the overall retail and real estate environment," he said.
Garutti told investors Thursday that his goal was to increase the brand's market opportunity while driving strong AUVs and returns on capital.
"We're still in the early days for Shack Track drive-thru and enhanced pickup models," he said. "And we have a lot of learning in terms of sales and throughput we're bullish about the potential white space opportunity these formats could create while meeting the evolving needs of our fans."
Financial highlights for Q2 ending
- Total revenue decreased 39.9% to
$91.8 million . -
Shack sales decreased 39.5% to
$89.5 million . - Same-Shack sales decreased 49.%.
-
Licensed revenue decreased 53.1% to
$2.3 million . -
Shack system-wide sales decreased 45.2% to
$123.8 million . -
Operating loss of
$24.1 million compared to operating income of$11.9 million in the prior-year second quarter.
COVID-19 affects sales
The company has experienced gradual improvement in the business during the second and third quarters, but location has been a determining factor. Shacks, for example, concentrated in urban areas, such as
Subsequent to the second quarter of 2020, in fiscal
Copyright © 2020 Networld Media. All rights reserved., source