NEW YORK—Shake Shack has partnered with Uber Eats on its in-app orders delivery service, CNBC reports. The burger chain tested the service in New York and Miami before expanding it across the U.S.
“We found that [Uber Eats] could do this incredibly well through this year, especially in the places where we’re strongest,” said CEO Randy Garutti.
The service is in addition to its Shack Track, which lets customers preorder food for pickup at walkup windows, curbside or in-store shelves. Customers placing delivery orders via Shake Shack’s app get a 99-cent flat delivery free or free delivery on orders more than $35. The app also tracks their order in real time.
The burger chain also is piloting a 5% upcharge on third-party delivery, which the company hopes will drive more customers to its in-app ordering. Over the past year, Shake Shack’s digital sales have soared, grabbing close to 60% of its total sales during the fourth quarter. Through the third week of February, year-to-date sales via its app and website rose more than 300% compared to the previous year.
“A year ago, we were a were a 20% digital company, and 80% in person, and overnight we switched to 80% digital, 20% in person,” Garutti told CNBC. “What we then built back to was really trying to ramp up and accelerate the digital toolbox. … We want to bring people into our ecosystem.”
The company is counting on investments in digital to make buying its food easier. Shake Shack does think more customers will come for in-person dining as more people become vaccinated, but digital will also be part of the dining experience.
Shake Shack is also expanding its U.S. locations, with 50 to 60 new locations planned for 2021. By the end of 2020, the company’s suburban stores outperformed its urban locations. “I want to do all of it. Our headline is ‘increased development everywhere.’ We’re about to open a restaurant next week in the Bryant Park area, and that’s the heart of Midtown—the hardest hit place,” Garutti said. “I’m a firm believer that the great cities of the world will be back.”
COVID-19 has been changing everything from how consumers shop to how stores market their goods and services, often via digital platforms and technologies. Be sure to read “Attention Shoppers” from NACS Magazine for more information about this growing trend.
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