WEBVTT - Shake Shack’s Marketing Plan May Boost Frequency

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<v Speaker 1>Welcome to Chopping It Up. I'm your host, Mike Hanlon,

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<v Speaker 1>a senior restaurant and food service analyst at Bloomberg Intelligence.

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<v Speaker 1>Our research and that of bi's five hundred analysts around

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<v Speaker 1>the globe can be found exclusively on the Bloomberg terminal. Today,

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<v Speaker 1>we're joined by Rob Lynch, CEO of Shakeshack.

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<v Speaker 2>Thanks for joining me, Rob, Hi, Mike, thanks for having

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<v Speaker 2>me today.

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<v Speaker 1>All right, So in my prep I noticed you graduated

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<v Speaker 1>from the University of Rochester. Are you a New York guy?

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<v Speaker 2>No, I'm actually from Pittsburgh, Pennsylvania. But I picked the

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<v Speaker 2>only place in the country that has tougher weather than

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<v Speaker 2>Pittsburgh to go to college, Rochester.

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<v Speaker 1>New York.

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<v Speaker 2>But man, it was beautiful three months of the year.

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<v Speaker 2>We just didn't happen to be at school those three months.

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<v Speaker 2>But it makes makes you tough going to school up there.

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<v Speaker 2>I loved every minute of it. Great people. Almost became

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<v Speaker 2>a Bills fan, but it couldn't do it give them

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<v Speaker 2>my Steelers lineage. So but yeah, I.

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<v Speaker 3>Went up there for both my undergrad and my.

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<v Speaker 2>MBA there awesome.

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<v Speaker 1>Yeah, I was just on a charity bike ride around

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<v Speaker 1>Lake Michigan. I'm sure it's beautiful up there by the

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<v Speaker 1>Great Lakes, man. I'm sure it's gorgeous there in the summer.

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<v Speaker 2>Yeah, and then you go down in the Finger Lakes

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<v Speaker 2>near Cornell. It's just an amazing part of the country.

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<v Speaker 1>All right, good stuff, man, What attracted you to the

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<v Speaker 1>Shakeshack gig?

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<v Speaker 2>You know, I just believe that that Shakeshack is one

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<v Speaker 2>of the great concepts in the restaurant industry right now.

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<v Speaker 2>I mean there's a handful of concepts that are kind

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<v Speaker 2>of a category of one, right. You know, I'd say

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<v Speaker 2>Chick fil A, Chipotle, Cava, Wingstop, and then I put

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<v Speaker 2>Shakeshack right there. And you know, I know, we make

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<v Speaker 2>burgers predominant, and there's a lot of burger offerings out there,

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<v Speaker 2>but there just aren't. There aren't burgers, fries and shakes

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<v Speaker 2>like Shakeshack makes them. And you know, the commitment to

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<v Speaker 2>doing right in every way in terms of the ingredient quality,

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<v Speaker 2>how they take care of their team members, how they

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<v Speaker 2>invest in the community.

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<v Speaker 3>I mean, it's just.

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<v Speaker 2>A really compelling place to be and a really inspirational place.

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<v Speaker 2>And you know, I've been in my career now for

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<v Speaker 2>twenty five years, and I really was excited about going

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<v Speaker 2>to a place that I could just feel so good

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<v Speaker 2>about being a part of, you know, starting all the

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<v Speaker 2>way back with the legacy of Danny Meyer and Randy

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<v Speaker 2>Grudy and Union Square Hospitality Group, and you know, this enlightened,

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<v Speaker 2>this mindset and this philosophy of enlightened hospitality. It's just

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<v Speaker 2>a really.

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<v Speaker 3>Special place, and you know, with a.

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<v Speaker 2>Commitment to really doing what restaurant companies are supposed to do,

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<v Speaker 2>and it's take care of people. And I just got

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<v Speaker 2>really inspired as I learned more about the story of

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<v Speaker 2>Danny and Randy and learn more about the commitment that

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<v Speaker 2>Shakesheck has to do everything to the best of their abilities.

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<v Speaker 2>And you know, then I started digging into the business

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<v Speaker 2>and I was like, wow, you know, four million AUVs.

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<v Speaker 2>Twenty plus margins, only five hundred and fifty of them globally,

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<v Speaker 2>Like there is a huge opportunity to scale this thing

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<v Speaker 2>and create a ton of value. So the ability to

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<v Speaker 2>do great work with great people in a way that

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<v Speaker 2>you can be proud of, with also a huge opportunity

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<v Speaker 2>to drive you know, financial returns for the team members,

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<v Speaker 2>for the investors. I mean, it's just an incredibly compelling

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<v Speaker 2>opportunity for sure.

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<v Speaker 1>So you talked a little bit about the strong corporate

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<v Speaker 1>culture there. How do you plan on improving it?

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<v Speaker 2>You know, I aspire to be, you know, to be

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<v Speaker 2>good enough for it if you will. I mean, I

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<v Speaker 2>want to make sure I tell everybody, you know, coming

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<v Speaker 2>into Shakeshack, I had to take the hippocratic oath right first,

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<v Speaker 2>do no harm, because there's so many great things about

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<v Speaker 2>this place. So, you know, I I want to live

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<v Speaker 2>the principles and values that have made this place great.

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<v Speaker 2>I also want to you know, bring my perspective from

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<v Speaker 2>my experiences and the places that I've been. You know,

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<v Speaker 2>my last role at Papa John's was really a big

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<v Speaker 2>cultural change. Was was some of the initial work that

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<v Speaker 2>we had to.

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<v Speaker 3>Do, and I learned a lot from that.

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<v Speaker 2>I learned that, you know, you don't impact culture by putting,

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<v Speaker 2>you know, words on a on a page or on

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<v Speaker 2>a sign that you hang on the wall. You impact

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<v Speaker 2>culture by the way you lead and by the way

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<v Speaker 2>you operate on a day to day basis and treating

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<v Speaker 2>people with respect and dignity and inspiring people to be,

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<v Speaker 2>you know, to be able to do more than they

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<v Speaker 2>think they can do. And so you know, That's how

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<v Speaker 2>I think about it. It's not some grandiose mixture of

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<v Speaker 2>some special philosophies or some patented technology. It's really just

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<v Speaker 2>showing up every day and trying to be the best

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<v Speaker 2>person you can be, and and and living up to

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<v Speaker 2>the commitments you make and living up to you know

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<v Speaker 2>what everyone you know takes pride in. So that's that's

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<v Speaker 2>really how I'm trying to impact Shakeshack in a positive way.

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<v Speaker 1>Well said, you communicate on the first earnings call that

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<v Speaker 1>improving operations is a big priority. Right now, can you

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<v Speaker 1>talk a bit about your efforts to improve throughput in

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<v Speaker 1>the restaurants.

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<v Speaker 2>Yeah, you know, shait Shack was built on a foundation

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<v Speaker 2>of fine dining. You know, it's all started with a

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<v Speaker 2>hot dog cart Madison Square Park in New York City,

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<v Speaker 2>and that hot dog cart was supplied out of eleven.

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<v Speaker 3>Madison, right, So amazing, you know.

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<v Speaker 2>So it's it's just grounded in this philosophy of in

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<v Speaker 2>this model of fine dining, and that's a little bit

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<v Speaker 2>different than than than you know, fast service food. And

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<v Speaker 2>so we are set up in a model that was

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<v Speaker 2>great when you were only had a few really big

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<v Speaker 2>restaurants with lines out the door and no drive throughs.

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<v Speaker 2>And you know, as we continue to scale, we're going

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<v Speaker 2>to continue to need to evolve and make sure that

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<v Speaker 2>we're building a model that's conducive to really every community

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<v Speaker 2>that we hope to serve, whether it's domestically or internationally,

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<v Speaker 2>and a lot you know, as we evolve from a

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<v Speaker 2>New York City model that was really dependent upon foot

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<v Speaker 2>traffic to a model that's going to show up in

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<v Speaker 2>the suburbs of Atlanta or Dallas, or Cincinnati, Ohio, or Pittsburgh, Pennsylvania,

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<v Speaker 2>where there's going to be a lot more car traffic.

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<v Speaker 2>We're going to have to be able to deliver, you know, through.

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<v Speaker 3>A drive through.

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<v Speaker 2>We're going to have to be able to deliver with

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<v Speaker 2>people who are not necessarily coming to sit in a

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<v Speaker 2>park and eat a great burger, but coming to you know,

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<v Speaker 2>get their food and get home on a Thursday night.

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<v Speaker 2>So with that comes different demands on the business. And

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<v Speaker 2>you know, we have a great operating model today. Our

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<v Speaker 2>operators do an amazing job taking care of our team members,

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<v Speaker 2>taking care of our guests, but there's definitely opportunities for

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<v Speaker 2>us to just get more productive and more efficient, and

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<v Speaker 2>that really is across a lot of different facets. One

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<v Speaker 2>is our restaurant format, so how we're how the kitchens

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<v Speaker 2>are actually structured today, we operate in the fine dining

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<v Speaker 2>model where most of our shacks are set up with

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<v Speaker 2>different stations and everything kind of culminates in an expo line,

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<v Speaker 2>almost like a symphony, and everything has to get there

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<v Speaker 2>at the right time, and then an you know, someone

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<v Speaker 2>who's running the expo takes it out and delivers it

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<v Speaker 2>to our guests. It's very different than a streamline model

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<v Speaker 2>that is more conducive to a drive through where you've

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<v Speaker 2>got an assembly line streamline, you know, linear flow where

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<v Speaker 2>things start at one end and end up next to

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<v Speaker 2>the drive through window and are dispersed there. So, you know,

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<v Speaker 2>we just have an opportunity to look at different formats

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<v Speaker 2>with linear flows and other opportunities that are more conducive

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<v Speaker 2>to that model. The other thing that is an opportunity

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<v Speaker 2>for us is really just an equipment technology and looking

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<v Speaker 2>at you know, how we deliver our food in the

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<v Speaker 2>best way possible today. You know, one of the great

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<v Speaker 2>things about shake Shack is everything's made fresh when you

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<v Speaker 2>order it, and it's just a fantastic, you know, experience.

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<v Speaker 2>But sometimes when things don't all time up. You know,

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<v Speaker 2>some of ourre either our shakes can sit too long

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<v Speaker 2>and not be as cold as they should be, or

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<v Speaker 2>our fries can sit too long and not be as

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<v Speaker 2>hot as they should be. So there's opportunities for us

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<v Speaker 2>to change that model a little bit. We're still always

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<v Speaker 2>going to make our burgers fresh to order, but we

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<v Speaker 2>would need to make sure that we're always delivering the

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<v Speaker 2>hottest and we're always delivering our fresh made shakes in

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<v Speaker 2>the best best way. So there's equipment technology and then

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<v Speaker 2>just process, you know, just reducing the number of steps

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<v Speaker 2>our team members take. It's it's a little bit more

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<v Speaker 2>complex in the back of a shake shack than a

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<v Speaker 2>lot of other places. So our operators are really looking

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<v Speaker 2>at ways, you know, whether it's streamlining the kitchen format,

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<v Speaker 2>you know, improving our equipment packages, or optimizing our processes

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<v Speaker 2>to just get faster to deliver while also delivering better products.

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<v Speaker 2>So that's really all the work that our new COO,

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<v Speaker 2>Stephanie Sentel, has focused on.

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<v Speaker 1>All right, good stuff, What can you do to improve

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<v Speaker 1>water accuracy of the drive through?

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<v Speaker 2>Well, you know, I think it's all it's very consistent

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<v Speaker 2>with what we just discussed, you know, making sure that

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<v Speaker 2>we have a model that is more consistent, more streamlined.

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<v Speaker 2>All of our original shacks were dining room only, and

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<v Speaker 2>so you know, if you get something wrong, yeah, you

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<v Speaker 2>never want to get something wrong for a customer, but

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<v Speaker 2>it's easy to make it right because they're right there.

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<v Speaker 2>If somebody goes through a drive through and gets home

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<v Speaker 2>and they've got the wrong order, that's a really dissatisfied guest.

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<v Speaker 2>So a lot of the things I just discussed are

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<v Speaker 2>going to help us with that. But the other way

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<v Speaker 2>to help it is, you know, we don't have combos

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<v Speaker 2>on our drive throughs today. You know, we're looking at

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<v Speaker 2>combos and and you know, combos to accomplish you know,

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<v Speaker 2>two of the big objectives, uh, you know, two of

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<v Speaker 2>the biggest things that people are looking for and the

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<v Speaker 2>drive through speed and accuracy. When you know, the biggest

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<v Speaker 2>challenge on speed and accuracy, whether you're talking dining room

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<v Speaker 2>or or drive through is customization. And combos kind of

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<v Speaker 2>mitigate the need for the customer the guests to customize

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<v Speaker 2>and streamline things people are used to making you know,

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<v Speaker 2>number one, two, three, or four a lot more than

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<v Speaker 2>I'll have a shack, burger, hold the cheese, add pickles,

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<v Speaker 2>you know, add all these things. So as we look

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<v Speaker 2>at optimizing our drive through menus and how we approach

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<v Speaker 2>drive through, that's going to definitely help our accuracy and

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<v Speaker 2>our speed.

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<v Speaker 1>Driving frequency was also a big point of emphasis on

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<v Speaker 1>your first earnings call, which I thought was great. By

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<v Speaker 1>the way, how long will it take to get the

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<v Speaker 1>operations completely ironed out? Were ironed out enough so that

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<v Speaker 1>Shakeshack can start marketing more aggressively.

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<v Speaker 2>Yeah, you know, part of our frequency challenge is that

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<v Speaker 2>we don't have the penetration that a lot of other

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<v Speaker 2>competitors have. You know, we have domestically less than three

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<v Speaker 2>hundred and fifty units, so believe it or not, you know,

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<v Speaker 2>a lot of our guests are tourists. A lot of

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<v Speaker 2>our guests are coming in from Omaha, Nebraska, coming to

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<v Speaker 2>New York and they're like, I want to get Shakeshack.

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<v Speaker 2>So that's part of the low frequency. And as we

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<v Speaker 2>build more shacks every year, we're going to we're going

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<v Speaker 2>to increase the access for customers and increase.

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<v Speaker 3>Their ability to visit us more often.

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<v Speaker 2>But in addition to that, we also need to you know,

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<v Speaker 2>the other two barriers to frequency our speed. People know

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<v Speaker 2>when they're coming to Shakeshack it's going to take a

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<v Speaker 2>little bit longer. And then value perception. And you know,

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<v Speaker 2>it's not necessarily value in the context of the product quality,

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<v Speaker 2>but it's just it's like a special occasion. Everybody who

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<v Speaker 2>comes wants to get burgers, fries, a drink and a shake,

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<v Speaker 2>and so our tickets are higher, and so we need

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<v Speaker 2>to find ways to meet the needs of all of

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<v Speaker 2>our customers and make sure that we are delivering, you know,

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<v Speaker 2>the unique needs of everyone in a way where they derive.

0:12:39.240 --> 0:12:42.240
<v Speaker 2>You know, they perceive our value to be kind of

0:12:42.320 --> 0:12:45.160
<v Speaker 2>worth the price point. And that's where the marketing comes in.

0:12:45.559 --> 0:12:49.880
<v Speaker 2>You know, like our food speaks for itself, but marketing

0:12:49.920 --> 0:12:54.040
<v Speaker 2>can definitely help us to to reinforce the things that

0:12:54.120 --> 0:12:57.440
<v Speaker 2>make us special, make us worth it. Frankly, I mean

0:12:57.720 --> 0:13:01.000
<v Speaker 2>a lot of folks don't know the quality of our ingredients.

0:13:01.080 --> 0:13:03.920
<v Speaker 2>You know, we don't buy regular beef. We buy our

0:13:03.960 --> 0:13:07.400
<v Speaker 2>beef in a special way. It costs more, it takes

0:13:07.400 --> 0:13:10.960
<v Speaker 2>more preparation, but it's the best. You know, we add

0:13:10.960 --> 0:13:14.079
<v Speaker 2>brisket to our beef to give it that crispy texture.

0:13:14.360 --> 0:13:17.360
<v Speaker 2>Then you know, that's more than just a normal burger

0:13:17.400 --> 0:13:21.000
<v Speaker 2>that you typically get at QSR. We use custard in

0:13:21.040 --> 0:13:25.320
<v Speaker 2>our shakes. We don't use ice cream. You know, almost

0:13:25.360 --> 0:13:27.880
<v Speaker 2>every ingredient, like avocados.

0:13:27.160 --> 0:13:28.600
<v Speaker 3>Like a lot of places will.

0:13:28.400 --> 0:13:32.640
<v Speaker 2>Have like avocado spreads right essentially like guacamole. Without all

0:13:32.640 --> 0:13:35.800
<v Speaker 2>this stuff, we literally are slicing avocados in the back

0:13:35.880 --> 0:13:39.840
<v Speaker 2>line when you order an avocado bac and cheeseburger. So, like,

0:13:40.040 --> 0:13:43.880
<v Speaker 2>all these things take time, all these things cost more,

0:13:44.120 --> 0:13:46.480
<v Speaker 2>and so we just need to do a little bit

0:13:46.559 --> 0:13:50.959
<v Speaker 2>of a better job helping people recognize that, helping people

0:13:51.040 --> 0:13:54.960
<v Speaker 2>understand all that it takes to deliver that experience at shakesheck,

0:13:55.000 --> 0:13:58.160
<v Speaker 2>and I think that'll be a big, big move towards

0:13:58.240 --> 0:14:00.719
<v Speaker 2>helping our value perception. And then the last thing we

0:14:00.760 --> 0:14:03.880
<v Speaker 2>already talked about just speed of service. You know, when

0:14:03.880 --> 0:14:06.880
<v Speaker 2>we get busy, you know, we get really busy. We

0:14:07.000 --> 0:14:10.120
<v Speaker 2>have long lines a lot of the time, and you

0:14:10.120 --> 0:14:13.720
<v Speaker 2>know it's going to take you, you know, six seven

0:14:13.800 --> 0:14:17.880
<v Speaker 2>minutes to get your order, whereas going to the QSR

0:14:17.960 --> 0:14:20.080
<v Speaker 2>guys it's going to take it two or three minutes.

0:14:20.200 --> 0:14:22.560
<v Speaker 2>And so I don't think we'll ever get to two

0:14:22.680 --> 0:14:24.440
<v Speaker 2>or three because it takes us over three minutes to

0:14:24.440 --> 0:14:25.400
<v Speaker 2>cook your burger.

0:14:25.080 --> 0:14:25.800
<v Speaker 3>When you order it.

0:14:26.160 --> 0:14:29.960
<v Speaker 2>But we can definitely improve the speed at which we

0:14:30.040 --> 0:14:32.080
<v Speaker 2>deliver and that all increase frequency as well.

0:14:32.360 --> 0:14:35.880
<v Speaker 1>Shakesheak's always prided itself on product innovation. How do you

0:14:35.920 --> 0:14:37.120
<v Speaker 1>plan to improve on that?

0:14:37.560 --> 0:14:40.560
<v Speaker 2>So, you know, I started my career in the restaurant

0:14:40.600 --> 0:14:45.480
<v Speaker 2>business at Taco Bell, and Taco Bell has an unbelievable model.

0:14:45.960 --> 0:14:49.080
<v Speaker 2>They are it just it still baffles me how they're

0:14:49.080 --> 0:14:53.280
<v Speaker 2>able to come up with so many amazing, craveable items

0:14:53.720 --> 0:14:57.600
<v Speaker 2>using you know, the same fourteen ingredients. It's just they

0:14:57.600 --> 0:15:00.560
<v Speaker 2>have some food geniuses over there. And you know, frankly,

0:15:00.600 --> 0:15:04.080
<v Speaker 2>I took that model and brought it to Arby's. And

0:15:04.160 --> 0:15:06.280
<v Speaker 2>when I went to Arby's, I kind of lifted that

0:15:06.400 --> 0:15:08.800
<v Speaker 2>and brought the product innovation model to Arby's. And that

0:15:08.840 --> 0:15:11.480
<v Speaker 2>was a big part of our turnaround at the Arby's

0:15:11.520 --> 0:15:14.720
<v Speaker 2>brand back in twenty and thirteen and fourteen and fifteen,

0:15:14.760 --> 0:15:18.320
<v Speaker 2>and even at Papa John's. You know, pizza pizza is

0:15:18.320 --> 0:15:21.560
<v Speaker 2>probably the toughest to innovate off of because everybody orders

0:15:21.560 --> 0:15:24.320
<v Speaker 2>pepperoni and cheese. But you know, we did. We brought

0:15:24.360 --> 0:15:27.520
<v Speaker 2>new things like Papa Dilla's and you know, which are

0:15:27.600 --> 0:15:31.600
<v Speaker 2>essentially like folded pizzas that you know, we're handheld. We

0:15:31.720 --> 0:15:35.640
<v Speaker 2>brought you know, some different recipes and such. But the

0:15:35.800 --> 0:15:39.680
<v Speaker 2>cool thing about shake Shack is it has this long

0:15:39.880 --> 0:15:46.600
<v Speaker 2>history of amazing product innovation, like a culinary you know,

0:15:46.920 --> 0:15:49.800
<v Speaker 2>prowess that's really unmatched in the industry. When I when

0:15:49.840 --> 0:15:52.800
<v Speaker 2>I got approached about this job, I went to shake

0:15:52.840 --> 0:15:55.320
<v Speaker 2>Shack and I saw the picture in the window of

0:15:55.360 --> 0:15:58.240
<v Speaker 2>a Korean barbecue chicken sandwich. I was like, where am

0:15:58.320 --> 0:15:59.880
<v Speaker 2>I Like, I thought I was coming for a shack

0:16:00.480 --> 0:16:03.480
<v Speaker 2>and they had this thing. And I went in and

0:16:03.520 --> 0:16:05.560
<v Speaker 2>I had it, and I said, this is literally like

0:16:05.720 --> 0:16:08.760
<v Speaker 2>the best chicken sandwich I've ever had. And you know,

0:16:09.000 --> 0:16:13.040
<v Speaker 2>we we have this history of amazing culinary proficiency.

0:16:13.960 --> 0:16:16.360
<v Speaker 3>What we haven't necessarily done in the.

0:16:16.240 --> 0:16:23.880
<v Speaker 2>Past is leveraged that culinary proficiency to drive like strategic innovation.

0:16:24.560 --> 0:16:27.400
<v Speaker 3>And when I say that, what I mean is, you know.

0:16:27.440 --> 0:16:33.400
<v Speaker 2>QSR, Every QSR worth its soul has you know, a

0:16:33.440 --> 0:16:40.200
<v Speaker 2>strategic calendar that is very carefully and planfully built to

0:16:40.240 --> 0:16:43.040
<v Speaker 2>meet the needs of a specific target audience in a

0:16:43.080 --> 0:16:47.640
<v Speaker 2>specific season with specific items, and through that they're going

0:16:47.720 --> 0:16:50.480
<v Speaker 2>to drive a level of you know, comp sales through

0:16:50.520 --> 0:16:56.160
<v Speaker 2>transactions and check growth. Right, Shakeshack is is like this

0:16:56.320 --> 0:16:59.640
<v Speaker 2>artistic place that all they cared about was great culinary,

0:16:59.760 --> 0:17:03.160
<v Speaker 2>And so there's a huge opportunity for us to leverage

0:17:03.200 --> 0:17:07.040
<v Speaker 2>that culinary in a strategic way that helps us build

0:17:07.040 --> 0:17:11.120
<v Speaker 2>our comp sales. That helps us like build the puzzle,

0:17:11.200 --> 0:17:15.439
<v Speaker 2>the jigsaw puzzle of Okay, what sandwich goes best with

0:17:15.520 --> 0:17:19.879
<v Speaker 2>what specialty iced tea with the greatest shake at this

0:17:20.040 --> 0:17:23.479
<v Speaker 2>time of year, and how do we promote it so

0:17:23.560 --> 0:17:26.919
<v Speaker 2>that we can achieve our comp sales goals through both

0:17:27.240 --> 0:17:32.000
<v Speaker 2>transaction growth and check growth by either you know, additional

0:17:32.040 --> 0:17:36.119
<v Speaker 2>items per check or some or trade up to a

0:17:36.160 --> 0:17:38.760
<v Speaker 2>more premium product. Like I'll give an example. You know,

0:17:39.160 --> 0:17:43.960
<v Speaker 2>one year, if you're running a promotion in Q one

0:17:44.320 --> 0:17:48.879
<v Speaker 2>and the price point on that sandwich is eight ninety nine, Like,

0:17:49.320 --> 0:17:51.520
<v Speaker 2>the next year, you don't want to run a seven

0:17:51.640 --> 0:17:53.800
<v Speaker 2>ninety nine sandwich. You're going to be you know, you're

0:17:53.840 --> 0:17:56.760
<v Speaker 2>giving up you know, fifteen percent and check right out

0:17:56.800 --> 0:18:01.240
<v Speaker 2>of the gate. So, like that type of insight has

0:18:01.320 --> 0:18:06.680
<v Speaker 2>never coupled with the amazing culinary that Shakeshack has always done.

0:18:06.680 --> 0:18:09.439
<v Speaker 2>In the past, and so for me, I'm not going

0:18:09.520 --> 0:18:11.760
<v Speaker 2>to be able to bring a lot of like, you know,

0:18:11.880 --> 0:18:15.399
<v Speaker 2>menu innovation ideas that these guys are that are going

0:18:15.440 --> 0:18:17.960
<v Speaker 2>to beat out what our culinary team does. I mean there,

0:18:18.160 --> 0:18:20.680
<v Speaker 2>this is like a fine dining culinary group here.

0:18:20.720 --> 0:18:22.240
<v Speaker 3>They're going to have the best ideas.

0:18:22.280 --> 0:18:26.879
<v Speaker 2>But I'm bringing some strategic thinking to how we launch

0:18:26.960 --> 0:18:30.919
<v Speaker 2>those those platforms, how they work together to help us

0:18:30.920 --> 0:18:32.359
<v Speaker 2>achieve our sales objectives.

0:18:33.040 --> 0:18:36.000
<v Speaker 1>I'm sure it's exciting for you to work with that

0:18:36.040 --> 0:18:38.480
<v Speaker 1>culinary team that you have on board. That's pretty cool.

0:18:39.520 --> 0:18:40.800
<v Speaker 3>Yeah, it's not as exciting.

0:18:40.880 --> 0:18:44.399
<v Speaker 2>It's not as exciting for my wife because I'm eating

0:18:44.480 --> 0:18:48.199
<v Speaker 2>a lot of stuff and it is it is it

0:18:48.280 --> 0:18:51.399
<v Speaker 2>is good stuff. I mean, it is just fantastic. So yeah,

0:18:51.560 --> 0:18:55.080
<v Speaker 2>I am excited. I I head to New York and

0:18:55.200 --> 0:18:56.919
<v Speaker 2>go down in that kitchen with a smile on my

0:18:56.960 --> 0:18:57.800
<v Speaker 2>face every week.

0:18:58.160 --> 0:19:02.119
<v Speaker 1>So were you at RB's the we have the meets?

0:19:02.400 --> 0:19:05.560
<v Speaker 2>Yeah? Yeah, I was the CMO when we launched that.

0:19:07.040 --> 0:19:08.520
<v Speaker 2>A lot of you know, I get a lot of

0:19:08.520 --> 0:19:10.520
<v Speaker 2>credit for that, but there, you know, I was just

0:19:10.520 --> 0:19:11.000
<v Speaker 2>the guy that.

0:19:11.000 --> 0:19:12.760
<v Speaker 3>Said, Okay, let's do it.

0:19:12.880 --> 0:19:14.640
<v Speaker 2>You know, all these smart people come up with these

0:19:14.680 --> 0:19:17.680
<v Speaker 2>ideas and build all these plans, and you know, sometimes

0:19:17.720 --> 0:19:19.680
<v Speaker 2>you're just lucky and you get to be you get

0:19:19.720 --> 0:19:22.480
<v Speaker 2>to say, hey, okay, I'll sign off on that, and

0:19:22.640 --> 0:19:24.600
<v Speaker 2>when it works, you know, you get credit. And when

0:19:24.640 --> 0:19:26.119
<v Speaker 2>you don't, you get you know, you blame all the

0:19:26.160 --> 0:19:27.840
<v Speaker 2>smart people that came up with the ideas.

0:19:27.880 --> 0:19:31.040
<v Speaker 3>But yeah, it was that was a ton of fun.

0:19:31.240 --> 0:19:35.119
<v Speaker 2>We We had just had an amazing agency partner and

0:19:35.200 --> 0:19:38.800
<v Speaker 2>fallon on that business with amazing, amazing strategic planners.

0:19:38.840 --> 0:19:40.840
<v Speaker 3>And I got to tell you that, you know.

0:19:40.920 --> 0:19:44.760
<v Speaker 2>What what made us successful at RB's was we just

0:19:44.880 --> 0:19:48.080
<v Speaker 2>kind of had a fearlessness about doing what we thought

0:19:48.840 --> 0:19:53.480
<v Speaker 2>was best for our customers and for our team members.

0:19:53.520 --> 0:19:57.399
<v Speaker 2>And and you know, I think that's been a part

0:19:57.480 --> 0:20:00.080
<v Speaker 2>of what has helped me in my career. And I

0:20:00.000 --> 0:20:02.520
<v Speaker 2>I learned a long time ago from a great guy

0:20:02.600 --> 0:20:05.160
<v Speaker 2>named Greg Creed who was the CEO at Taco.

0:20:04.880 --> 0:20:07.520
<v Speaker 3>Bell when I was there, and he said, you know.

0:20:08.680 --> 0:20:10.960
<v Speaker 2>Rob, you just got to you just got to be

0:20:11.119 --> 0:20:13.600
<v Speaker 2>you like I got there. I was at Taco Bell

0:20:13.640 --> 0:20:16.920
<v Speaker 2>and I hadn't been in the restaurant industry before, and

0:20:17.000 --> 0:20:20.120
<v Speaker 2>I backfilled this one guy, and I was trying to.

0:20:20.000 --> 0:20:23.199
<v Speaker 3>Do with it. I thought everybody, you know, thought I.

0:20:23.200 --> 0:20:26.040
<v Speaker 2>Should be doing. And you know, Greg pulled me aside

0:20:26.080 --> 0:20:30.320
<v Speaker 2>and he's got this great Australian accent and he says, hey, mate,

0:20:30.359 --> 0:20:30.720
<v Speaker 2>you just.

0:20:30.720 --> 0:20:31.520
<v Speaker 3>Need to be you.

0:20:31.520 --> 0:20:33.240
<v Speaker 2>You need to do what you need to do.

0:20:33.480 --> 0:20:36.120
<v Speaker 3>You know, we love you. And I was like, okay,

0:20:36.160 --> 0:20:37.000
<v Speaker 3>I'll lean into that.

0:20:37.280 --> 0:20:39.640
<v Speaker 2>And you know, I got up on stage in front

0:20:39.680 --> 0:20:42.080
<v Speaker 2>of this franchise e conference in like month two and

0:20:42.119 --> 0:20:45.960
<v Speaker 2>I just told this story about moving from Pittsburgh, Pennsylvania,

0:20:46.080 --> 0:20:49.399
<v Speaker 2>to California and moving my family and my dog and

0:20:49.440 --> 0:20:51.520
<v Speaker 2>my mother in law came along and this whole thing

0:20:51.520 --> 0:20:55.920
<v Speaker 2>and everybody left and and it just set the tone.

0:20:55.720 --> 0:20:57.440
<v Speaker 3>For you know, how it's going.

0:20:57.359 --> 0:21:00.520
<v Speaker 2>To interact with our franchise ease. And Ever said, then,

0:21:01.119 --> 0:21:03.879
<v Speaker 2>you know, I've tried to be the most authentic, you know,

0:21:04.240 --> 0:21:07.520
<v Speaker 2>leader and person I can be, and it's not always

0:21:07.560 --> 0:21:11.479
<v Speaker 2>gonna you know, everybody doesn't always love me, but the

0:21:11.520 --> 0:21:14.480
<v Speaker 2>ones that do, you know, do And that was how

0:21:14.560 --> 0:21:17.399
<v Speaker 2>we have the meats came to be. It was look

0:21:18.200 --> 0:21:22.600
<v Speaker 2>like vegetarians aren't going to come to Arby's anyways, so

0:21:23.359 --> 0:21:25.800
<v Speaker 2>you know, like we don't have anything against them, but

0:21:26.040 --> 0:21:28.560
<v Speaker 2>like we need to speak to our people. We need

0:21:28.560 --> 0:21:30.199
<v Speaker 2>to speak to the people who are going to come

0:21:30.200 --> 0:21:32.679
<v Speaker 2>and sit down in our booth and eat like a

0:21:32.880 --> 0:21:36.119
<v Speaker 2>double roast beef, you know, roast beef and cheddar and

0:21:36.160 --> 0:21:39.119
<v Speaker 2>curly fries and a jamochah shake and and you know what,

0:21:39.359 --> 0:21:42.320
<v Speaker 2>Like that's what we're about, That's who we are. And

0:21:42.920 --> 0:21:46.000
<v Speaker 2>if people don't want that, then they're not going to

0:21:46.080 --> 0:21:48.240
<v Speaker 2>come anyways. But let's make sure that we are being

0:21:48.280 --> 0:21:51.760
<v Speaker 2>authentically us. And I've tried to you know, live that

0:21:51.880 --> 0:21:55.439
<v Speaker 2>throughout my restaurant career and at shape Shack. It's so

0:21:55.600 --> 0:21:58.560
<v Speaker 2>easy because it's such a great brand story and it's

0:21:58.600 --> 0:22:00.920
<v Speaker 2>such a great place that you don't have to make

0:22:01.000 --> 0:22:03.479
<v Speaker 2>up a lot and people are going to like it.

0:22:03.560 --> 0:22:06.040
<v Speaker 2>So that's, uh, that's the path forward.

0:22:06.800 --> 0:22:09.800
<v Speaker 1>Great. Yeah, that was an iconic campaign, and you know,

0:22:09.880 --> 0:22:13.520
<v Speaker 1>to your point being you being authentic, that's everyone's real superpower,

0:22:13.600 --> 0:22:14.960
<v Speaker 1>right because nobody else can be you.

0:22:15.720 --> 0:22:16.000
<v Speaker 2>Uh.

0:22:16.040 --> 0:22:18.679
<v Speaker 1>And Greg Creed is awesome. I met him about a

0:22:18.680 --> 0:22:22.560
<v Speaker 1>month ago at a conference, oh yeah, restaurant conference, and

0:22:22.600 --> 0:22:25.840
<v Speaker 1>he he was mixing it up with everybody, you know.

0:22:25.840 --> 0:22:28.080
<v Speaker 1>I got to spend about an hour with him reminiscing

0:22:28.119 --> 0:22:30.520
<v Speaker 1>about some of the some of the projects he did

0:22:30.680 --> 0:22:35.400
<v Speaker 1>at Taco Bell. Just a real genuine nice guy.

0:22:35.960 --> 0:22:38.879
<v Speaker 2>Well, he definitely had a big impact on my career.

0:22:39.359 --> 0:22:42.160
<v Speaker 1>You know, a similar experience Marie Conway. When I first

0:22:42.160 --> 0:22:46.480
<v Speaker 1>started on the research side. Marie Conway was my it

0:22:46.560 --> 0:22:49.160
<v Speaker 1>was the head of research at Siddie and she, uh,

0:22:49.600 --> 0:22:53.520
<v Speaker 1>you know, I did my first presentation and uh I

0:22:53.600 --> 0:22:55.800
<v Speaker 1>practiced it with her and she's like, that sucked. I

0:22:55.840 --> 0:22:58.919
<v Speaker 1>was like, really spent so much time on it. She's like,

0:23:00.040 --> 0:23:03.680
<v Speaker 1>let's pretend you're talking to a buddy at a barbecue.

0:23:03.720 --> 0:23:05.760
<v Speaker 1>And I was like, okay, and she's like, oh, this

0:23:05.920 --> 0:23:07.639
<v Speaker 1>is much better, you know.

0:23:07.720 --> 0:23:09.720
<v Speaker 2>And that was like, it's amazing how that works.

0:23:09.800 --> 0:23:13.320
<v Speaker 1>Huh yeah, best advice ever got about presenting, you know. So,

0:23:13.680 --> 0:23:15.520
<v Speaker 1>if you're listening, Marie, thank you very much.

0:23:16.480 --> 0:23:19.480
<v Speaker 2>Well, if Greg's listening, he's calling me a liar right

0:23:19.520 --> 0:23:22.600
<v Speaker 2>now because he didn't exactly use those words. He used

0:23:22.640 --> 0:23:25.240
<v Speaker 2>more words that are more more like the ones you

0:23:25.359 --> 0:23:27.240
<v Speaker 2>just use. I was trying to be polite on your show,

0:23:27.280 --> 0:23:30.239
<v Speaker 2>but you know, Greg, Greg didn't pull any punches. He

0:23:30.320 --> 0:23:31.600
<v Speaker 2>essentially said the same thing.

0:23:33.480 --> 0:23:38.120
<v Speaker 1>That's awesome, all right, what percentage of sales should shakeshack

0:23:38.240 --> 0:23:41.920
<v Speaker 1>be spending on advertising, and what are the optimal channels

0:23:41.960 --> 0:23:42.560
<v Speaker 1>in your view?

0:23:44.600 --> 0:23:49.399
<v Speaker 2>You know, given our footprint, we are not going to

0:23:49.400 --> 0:23:52.560
<v Speaker 2>be out there buying national media anytime soon. You know,

0:23:52.640 --> 0:23:55.000
<v Speaker 2>it just wouldn't be a productive and efficient use of

0:23:55.040 --> 0:24:00.040
<v Speaker 2>our resources. So we lean in on digital marketing and

0:24:00.040 --> 0:24:02.280
<v Speaker 2>and you know, we do it at a very in

0:24:02.320 --> 0:24:05.720
<v Speaker 2>a very surgical, localized way. You know, we're making sure

0:24:05.760 --> 0:24:09.280
<v Speaker 2>that we are buying our digital media, you know, pretty

0:24:09.320 --> 0:24:11.720
<v Speaker 2>much at the zip code level around our shacks in

0:24:11.760 --> 0:24:15.400
<v Speaker 2>the markets that we're in. So today that's that's probably

0:24:15.400 --> 0:24:20.520
<v Speaker 2>our biggest form of advertising. And frankly, that's only really

0:24:20.520 --> 0:24:25.240
<v Speaker 2>been about twelve months since the brand has really invested

0:24:25.480 --> 0:24:29.400
<v Speaker 2>in that platform, and it is it has really been

0:24:29.400 --> 0:24:32.840
<v Speaker 2>a driver of our outperformance. You know, I've been here

0:24:34.640 --> 0:24:38.960
<v Speaker 2>two quarters now and both quarters have have exceeded expectations

0:24:39.240 --> 0:24:40.199
<v Speaker 2>on the top line.

0:24:40.600 --> 0:24:42.040
<v Speaker 3>And that's what I would say is one of.

0:24:41.960 --> 0:24:44.240
<v Speaker 2>The key drivers. I mean, we're really just dipping our

0:24:44.280 --> 0:24:51.800
<v Speaker 2>toe in in the into the marketing you know foray

0:24:51.920 --> 0:24:54.480
<v Speaker 2>here and and just you know, you know, you think

0:24:54.480 --> 0:24:57.400
<v Speaker 2>about marketing, you think about it on a curve, right,

0:24:57.560 --> 0:25:00.359
<v Speaker 2>and you always want to invest until you at that

0:25:00.880 --> 0:25:03.440
<v Speaker 2>you know, that equilibrium where you're at the peak of

0:25:03.520 --> 0:25:06.679
<v Speaker 2>the marginal rate of return on marketing investment, and we

0:25:06.720 --> 0:25:09.320
<v Speaker 2>are literally, you know, all the way down on the

0:25:09.320 --> 0:25:12.080
<v Speaker 2>bottom left hand of that curve. We've just started. So

0:25:12.119 --> 0:25:15.520
<v Speaker 2>we have a huge amount of value creation to come

0:25:15.960 --> 0:25:19.320
<v Speaker 2>from continuing to increase the amount of marketing that we

0:25:19.400 --> 0:25:23.760
<v Speaker 2>put up against this business. So you know, historically the

0:25:24.400 --> 0:25:27.720
<v Speaker 2>percent of sales has been less than one percent. I

0:25:27.760 --> 0:25:30.360
<v Speaker 2>think right now we're we're floating in this year, we're

0:25:30.359 --> 0:25:33.840
<v Speaker 2>floating in between one and two percent. I think most

0:25:34.280 --> 0:25:37.720
<v Speaker 2>you know, best in class organizations that are really investing

0:25:37.760 --> 0:25:40.840
<v Speaker 2>in driving top line growth are investing in the four

0:25:40.880 --> 0:25:43.040
<v Speaker 2>to five percent range. You know, we're not going to

0:25:43.040 --> 0:25:46.919
<v Speaker 2>get there overnight. We're a company operated, company owned concepts,

0:25:46.920 --> 0:25:49.680
<v Speaker 2>So you know, I have to be responsible.

0:25:49.240 --> 0:25:51.000
<v Speaker 3>You know, steward of our our g and A.

0:25:51.400 --> 0:25:53.439
<v Speaker 2>And you know, I don't have a big franchise e

0:25:53.520 --> 0:25:55.480
<v Speaker 2>fund to go and spend like a lot of these guys.

0:25:55.920 --> 0:25:59.199
<v Speaker 2>So you know, we are we are making sure that

0:25:59.240 --> 0:26:03.119
<v Speaker 2>we are being in credibly analytical and evaluating the returns

0:26:03.160 --> 0:26:05.480
<v Speaker 2>that we're getting on our marketing investments. And as long

0:26:05.520 --> 0:26:09.479
<v Speaker 2>as those returns continue to deliver above a threshold that

0:26:09.520 --> 0:26:15.359
<v Speaker 2>we determine warrants continued investment. We will keep investing, but

0:26:15.440 --> 0:26:16.760
<v Speaker 2>it's going to be very thoughtful.

0:26:16.800 --> 0:26:18.520
<v Speaker 3>It's going to be you know, on a.

0:26:18.560 --> 0:26:21.320
<v Speaker 2>Very analytical strategic basis. We're not going to be out

0:26:21.359 --> 0:26:24.840
<v Speaker 2>there spending marketing just to get you know, just to

0:26:24.880 --> 0:26:27.400
<v Speaker 2>get to a percent of sales. We're going to continue

0:26:27.440 --> 0:26:29.959
<v Speaker 2>to grow as long as we're getting the returns that

0:26:30.000 --> 0:26:32.160
<v Speaker 2>we that we did that we need.

0:26:31.960 --> 0:26:34.600
<v Speaker 1>To makes sense. And what kind of loyalty program do

0:26:34.600 --> 0:26:36.560
<v Speaker 1>you envision working best for Shakeshack?

0:26:36.880 --> 0:26:40.120
<v Speaker 2>You know, we we are. It's a big investment where

0:26:40.119 --> 0:26:44.600
<v Speaker 2>we're making right now in our guest recognition capabilities. You know,

0:26:44.640 --> 0:26:50.160
<v Speaker 2>we want to be able to identify our guests regardless

0:26:50.200 --> 0:26:54.439
<v Speaker 2>of how they come into our franchise. You know, a

0:26:54.680 --> 0:26:59.600
<v Speaker 2>majority of our transactions at this point are digital transactions.

0:26:59.600 --> 0:27:02.200
<v Speaker 2>They're kind going through our kiosks, which we have now

0:27:02.600 --> 0:27:04.840
<v Speaker 2>put into all of our all of our shocks over

0:27:04.880 --> 0:27:07.840
<v Speaker 2>the last year and a half, our web, our app

0:27:08.320 --> 0:27:11.800
<v Speaker 2>and so and our and our third party delivery partners.

0:27:11.840 --> 0:27:15.840
<v Speaker 3>So we really want to be able to identify.

0:27:15.560 --> 0:27:20.040
<v Speaker 2>When and when and how our guests are ordering and

0:27:20.359 --> 0:27:22.640
<v Speaker 2>coming into our platform so.

0:27:22.440 --> 0:27:25.160
<v Speaker 3>That we can make sure that we are.

0:27:25.320 --> 0:27:30.119
<v Speaker 2>You know, this idea that Danny started with, this idea

0:27:30.119 --> 0:27:34.760
<v Speaker 2>of enlightened hospitality and his fine dining restaurants, the secret

0:27:34.840 --> 0:27:36.280
<v Speaker 2>to it. And I hope he doesn't get mad at

0:27:36.280 --> 0:27:39.200
<v Speaker 2>me for for disclosing this. I think I think you

0:27:39.280 --> 0:27:41.480
<v Speaker 2>might have written a book about it. But like the

0:27:41.560 --> 0:27:47.760
<v Speaker 2>secret Sauce is, they they are so adept at learning.

0:27:47.920 --> 0:27:51.080
<v Speaker 2>When their guests come in at the mayer d stand

0:27:51.200 --> 0:27:52.400
<v Speaker 2>or at the bar, or at.

0:27:52.320 --> 0:27:54.680
<v Speaker 3>The table, wherever you are, they have.

0:27:54.720 --> 0:27:57.760
<v Speaker 2>Their ears up all the time. They're trying to learn

0:27:57.920 --> 0:28:00.760
<v Speaker 2>more about you so that they can better meet your needs,

0:28:01.160 --> 0:28:03.199
<v Speaker 2>you know, without you having to say, hey it's our

0:28:03.200 --> 0:28:06.879
<v Speaker 2>anniversary or hey it's my birthday. And so they gather

0:28:07.000 --> 0:28:10.920
<v Speaker 2>this information about their guests and use it to make

0:28:10.960 --> 0:28:16.320
<v Speaker 2>their experiences so special and and like they they.

0:28:16.119 --> 0:28:17.920
<v Speaker 3>Literally live for it, like they they.

0:28:18.280 --> 0:28:20.359
<v Speaker 2>Live to like, Oh I did this, and you know

0:28:20.440 --> 0:28:22.560
<v Speaker 2>I I they didn't know that I knew it was

0:28:22.600 --> 0:28:24.760
<v Speaker 2>their birthday and I brought on a birthday cake, or

0:28:24.800 --> 0:28:26.679
<v Speaker 2>they didn't know I knew it was their anniversary and

0:28:26.720 --> 0:28:29.080
<v Speaker 2>I brought you know, flour with a with a piece

0:28:29.080 --> 0:28:30.880
<v Speaker 2>of pie or something, you know, like that's what they

0:28:30.920 --> 0:28:34.760
<v Speaker 2>live for and what we at Shakeshak, that's our heritage.

0:28:35.480 --> 0:28:37.240
<v Speaker 2>We are trying to figure out how to do that

0:28:37.880 --> 0:28:40.480
<v Speaker 2>in the digital age, like how do we deliver and

0:28:40.640 --> 0:28:44.880
<v Speaker 2>lightened hospitality through our digital footprint. And so when we

0:28:44.920 --> 0:28:47.480
<v Speaker 2>talk about guest recognition, it's not like big Brother, we're

0:28:47.520 --> 0:28:49.320
<v Speaker 2>trying to you know, get all your day. It's about

0:28:49.360 --> 0:28:53.040
<v Speaker 2>like how do we learn, like what what's special to you?

0:28:53.520 --> 0:28:56.800
<v Speaker 2>Like you you like a little extra avocado on your sandwich,

0:28:56.840 --> 0:28:58.760
<v Speaker 2>but you know you forgot to order at this time,

0:28:58.840 --> 0:29:01.000
<v Speaker 2>so we put it on there for you anyways, or

0:29:01.120 --> 0:29:03.960
<v Speaker 2>you know, things like that that are surprise and delight things.

0:29:04.000 --> 0:29:07.880
<v Speaker 2>I mean, that's my that's my vision for how you know,

0:29:08.040 --> 0:29:11.520
<v Speaker 2>loyalty should work. It's not just an you know and

0:29:11.640 --> 0:29:15.160
<v Speaker 2>earn and spend kind of points based model. It's really

0:29:15.200 --> 0:29:20.760
<v Speaker 2>about delivering enlightened hospitality, delivering experiences through our understanding of

0:29:20.760 --> 0:29:23.719
<v Speaker 2>our guests. And so that's what we're building through our

0:29:23.760 --> 0:29:27.360
<v Speaker 2>digital platforms. And you know, I'm not I'm not going

0:29:27.400 --> 0:29:28.960
<v Speaker 2>to say we're all the way to bright yet, but

0:29:29.000 --> 0:29:31.640
<v Speaker 2>that's that's the aspiration is for us to be able

0:29:31.680 --> 0:29:35.760
<v Speaker 2>to execute Danny's vision through our digital channels across you

0:29:35.760 --> 0:29:37.360
<v Speaker 2>know all of our shacks.

0:29:38.120 --> 0:29:39.680
<v Speaker 1>All right, So we're gonna wrap this up with a

0:29:39.800 --> 0:29:42.760
<v Speaker 1>very very important question. What's your favorite order?

0:29:44.520 --> 0:29:47.760
<v Speaker 2>Oh my gosh, I'm gonna have it's it's so so hard,

0:29:47.760 --> 0:29:49.680
<v Speaker 2>but I'm gonna have to go with our our smoke

0:29:49.720 --> 0:29:52.720
<v Speaker 2>Shack burger. I mean I had one on Saturday night

0:29:54.280 --> 0:29:57.960
<v Speaker 2>last Saturday, and I actually had it delivered. And you know,

0:29:58.760 --> 0:30:01.959
<v Speaker 2>I always worried when it when it's being delivered, if

0:30:02.000 --> 0:30:03.800
<v Speaker 2>it's going to be as good as it is when

0:30:03.800 --> 0:30:06.400
<v Speaker 2>it gets fresh. And you're right that, like our third

0:30:06.400 --> 0:30:09.920
<v Speaker 2>party partners have gotten so good at coming in and

0:30:10.000 --> 0:30:13.960
<v Speaker 2>timing it right, picking it up, managing that this thing

0:30:14.000 --> 0:30:15.800
<v Speaker 2>showed up. I was in a hotel room. I was

0:30:15.840 --> 0:30:19.240
<v Speaker 2>actually in Pittsburgh last weekend getting ready to go to

0:30:19.240 --> 0:30:22.280
<v Speaker 2>the Steelers game on Sunday, and and so I ordered

0:30:22.320 --> 0:30:24.200
<v Speaker 2>this this burger, you know, smoke Shack.

0:30:24.360 --> 0:30:26.000
<v Speaker 3>And you know, we.

0:30:25.880 --> 0:30:29.640
<v Speaker 2>Are the largest consumer of these chili peppers in the world.

0:30:29.840 --> 0:30:31.880
<v Speaker 2>And they didn't put on this shack. Yeah, And we

0:30:32.080 --> 0:30:35.040
<v Speaker 2>like slice them fresh every day and they so they

0:30:35.040 --> 0:30:37.320
<v Speaker 2>are super fresh. They have just the right amount a

0:30:37.360 --> 0:30:40.120
<v Speaker 2>little little crunch to them, and they have it like

0:30:40.200 --> 0:30:43.160
<v Speaker 2>the sweet heat that you. You know, it's just an

0:30:43.400 --> 0:30:47.040
<v Speaker 2>unbelievable experience that you can't believe you got on a

0:30:47.080 --> 0:30:49.440
<v Speaker 2>sandwich that costs you like less than ten bucks, and

0:30:49.560 --> 0:30:52.800
<v Speaker 2>because it's so special, and so when you get that,

0:30:53.360 --> 0:30:57.160
<v Speaker 2>and then I got our fries with our special lto

0:30:57.280 --> 0:31:00.320
<v Speaker 2>right now, I got truffle fries. So if you haven't

0:31:00.320 --> 0:31:03.760
<v Speaker 2>had our truffle burger or our truffle fries, like it's

0:31:03.800 --> 0:31:07.240
<v Speaker 2>made with legit black truffle. I mean, like it's you know,

0:31:07.360 --> 0:31:10.520
<v Speaker 2>you just don't. You don't find that anywhere else, and

0:31:10.960 --> 0:31:13.840
<v Speaker 2>that can be served in under ten minutes. So I

0:31:13.880 --> 0:31:18.080
<v Speaker 2>got the truffle fries and the smoke shack, and I

0:31:18.080 --> 0:31:21.560
<v Speaker 2>gotta tell you I was I almost didn't even care

0:31:21.600 --> 0:31:24.120
<v Speaker 2>if the Steelers won or lost because my experience was

0:31:24.160 --> 0:31:24.960
<v Speaker 2>so good that night.

0:31:26.080 --> 0:31:29.960
<v Speaker 1>I'm with you, man. I love I love peppers. I

0:31:29.960 --> 0:31:31.920
<v Speaker 1>love like hot vinegar peppers.

0:31:32.040 --> 0:31:34.080
<v Speaker 2>It's like, oh my god, have you had our smoke shack.

0:31:34.200 --> 0:31:36.000
<v Speaker 1>I sure have. It's what I get every time I

0:31:36.120 --> 0:31:38.400
<v Speaker 1>make all right, you get a chicken sandwich on the

0:31:38.480 --> 0:31:41.480
<v Speaker 1>side too if I'm extra hungry. But I can't go

0:31:41.640 --> 0:31:44.240
<v Speaker 1>and not get the smoke shack. So I'm with you

0:31:44.280 --> 0:31:46.040
<v Speaker 1>on that I have to try the truffle fries. Though

0:31:46.200 --> 0:31:46.960
<v Speaker 1>you're starting to make.

0:31:46.840 --> 0:31:48.640
<v Speaker 2>Me hungry, I'm not gonna lie.

0:31:50.000 --> 0:31:52.360
<v Speaker 1>Listen, man, thank you very much for your time. You know,

0:31:52.640 --> 0:31:54.520
<v Speaker 1>I'm really looking forward to the chance to work with

0:31:54.560 --> 0:31:57.760
<v Speaker 1>you as I continue to cover this company. It's it's

0:31:57.760 --> 0:31:59.320
<v Speaker 1>definitely an exciting time for shake Shack.

0:32:00.760 --> 0:32:02.719
<v Speaker 2>Well, Mike, I can't I can't tell you how much

0:32:02.760 --> 0:32:03.840
<v Speaker 2>I enjoyed talking with you.

0:32:04.200 --> 0:32:07.040
<v Speaker 3>And I feel like the luckiest guy in.

0:32:07.040 --> 0:32:09.239
<v Speaker 2>The world to be here at shake check with all

0:32:09.280 --> 0:32:12.000
<v Speaker 2>these amazing people and all this amazing future and all

0:32:12.000 --> 0:32:16.040
<v Speaker 2>this amazing opportunity. So thank you for giving me the

0:32:16.160 --> 0:32:20.720
<v Speaker 2>chance to tell our story. And you know, hopefully a

0:32:20.800 --> 0:32:23.800
<v Speaker 2>year from now we'll be here, you know, celebrating, you

0:32:23.840 --> 0:32:26.200
<v Speaker 2>know how great things have gone, you know, according to

0:32:26.240 --> 0:32:28.800
<v Speaker 2>what we just discussed. So thanks again.

0:32:29.160 --> 0:32:31.800
<v Speaker 1>Yeah, that would be awesome. Your passion came across in

0:32:31.840 --> 0:32:35.040
<v Speaker 1>that first earnings call. It came across today. I'd love

0:32:35.120 --> 0:32:37.160
<v Speaker 1>to see it. I want to thank the audience for

0:32:37.200 --> 0:32:40.000
<v Speaker 1>tuning in. If you liked the episode, please subscribe and

0:32:40.080 --> 0:32:42.479
<v Speaker 1>leave us a review. Check back soon for an interview

0:32:42.520 --> 0:32:58.600
<v Speaker 1>with Andy Rebin, chief experience officer at Kava