{"id":5953,"date":"2015-12-09T20:23:08","date_gmt":"2015-12-10T01:23:08","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/employees-and-community-at-shake-shack\/"},"modified":"2015-12-09T20:23:08","modified_gmt":"2015-12-10T01:23:08","slug":"employees-and-community-at-shake-shack","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/employees-and-community-at-shake-shack\/","title":{"rendered":"Employees and Community at Shake Shack"},"content":{"rendered":"

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Shake Shack Business Model<\/strong><\/p>\n

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Shake Shack has revolutionized the fast casual space with the simple business model of becoming \u201cthe best burger company in the world\u201d[1]<\/sup><\/sup><\/a>. Its CEO, Randy Garutti elaborates that his team focuses on the simple tasks that create the Shake Shack experience by doing \u201cwhat you want to do really well in its most basic version\u201d[2]<\/sup><\/sup><\/a>. He has a picture on his wall that reminds him that \u201cthe bigger we get the smaller we need to act\u2019\u2019, and they indeed have now grown in scale greatly from its humble beginnings[3]<\/sup><\/sup><\/a>. Shake Shack started as a hot dog stand founded by Danny Meyer 11 years ago in Madison Square Park in order to revitalize the neighborhood. It has now expanded to become a global chain with over 41 stores in the United States and 29 franchises around the world in cities such as London, Istanbul, Dubai and Moscow[4]<\/sup><\/sup><\/a>. Shake Shack was valued at around 1.6billion after it raised $112 million in its IPO in the Spring of 2015.[5]<\/a><\/p>\n

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Shake Shack Operations Model<\/strong><\/p>\n

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Despite its growth it has stayed true to its commitment to the neighborhood just the same way it was when it opened in Madison Square Park. According to Denise Lee Yohn, \u201cGreat brands use their brand identities as their one true focus because that\u2019s the only way to ensure continued relevance and resonance with customers.\u201d[6]<\/sup><\/sup><\/a> And this is what Shake Shack has done. It has honed its operations on the aspects that define its business model, therefore creating a brand identity. Its brand identity is anchored in what Danny Meyer calls \u201cenlightened hospitality\u201d which is basically the company credo: \u201cto create a welcoming atmosphere first for employees, next for customers, and then for the outside community, suppliers, and, finally, investors.\u201d[7]<\/sup><\/sup><\/a> The two main pillars of this philosophy are the happiness of its employees and its focus on the community.<\/p>\n

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\u00a0<\/strong><\/p>\n

Employees:<\/strong><\/p>\n

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Employees are constantly empowered to deliver a superior customer experience. Garruti explains that whenever he opens a store he tells his employees to try to put the company out of business: \u201cput us out of business because you are so damn generous with what you give the people who walk in this door. If there\u2019s a kid crying, who\u2019s going to walk over with a free cup of custard? I challenge you to put us out of business with how generous you are. Go do it. Give away free stuff.\u201d [8]<\/sup><\/sup><\/a>. In this way he empowers the employees to take the success of Shake Shack in their own hands. The Shake Shack team has also taken concrete operational steps to instill this empowerment and motivate its employees:<\/p>\n