Speed of Service: Fast food restaurants emphasize speed over customer care – a critical factor in the fast food industry.

Finally, Meyer wanted Shake Shack employees to create culture of hospitality that welcomed each customer as if Shake Shack was a fine-dining establishment, rather than a burger joint.

#2 - Shake Shack IPO Faculty Supervision: Jake Thomas and Geert Rouwenhorst From an art project in a New York City park, Despite its huge size, it represents a typical red ocean market dominated by McDonalds for now. In many cases, the ingredients used are scarce, forcing premium restaurants to accept prevailing market prices.

Get step-by-step explanations, verified by experts. Shake Shack addresses this point not only by having environmentally friendly products but also through a corporate policy that supports local communities and doing good.

Additionally, Shake Shacks are designed to feel as lively on the outside as they are inside. Shake Shack’s blue ocean strategy has enabled it to achieve double-digit growth at a time when most market players are struggling to maintain modest growth.

Shake Shack IPO Overview Introduction “If it’s a really refined concept (…) we make it more accessible.

The Shack regularly drew long lines, leading Meyer to build a company around the concept.

They usually do not even consider going to fast-food restaurants but rather choose bars to stay out late and enjoy a drink or more with friends.

So how did it create a new market in a fiercely competitive restaurant industry?

The fulcrum of its social media strategy is user-generated content – a strategy that has helped the brand amass hundreds of thousands of fans and followers who help the company spread its concept and story in their communities. Conventional Advertising: Shake Shack brings cost further down by significantly reducing spend on conventional TV, radio and magazine advertising – that typical fast food chains more than rely on. Unlike traditional fast-food chains, Every Shake Shack location is specifically designed with a unique aesthetic to fit contextually into their neighborhood but with essential branding elements repeated to maintain the restaurant’s essential character.

By not competing, but rather by creating a new market space through the simultaneous pursuit of differentiation and low cost.

Instead it focuses its effort on reaching millennials via social media. The company went public on, January 30, 2015 with shares listed on the New York Stock Exchange (NYSE).

The venture is entirely a brand focus thing that endorses consumer preferences at large level. If it’s more accessible, like burgers and barbecue, we.
To unlock these tiers of noncustomers Shake Shack created a new uncontested market space in fast-casual food space.

The limited-service restaurant sector represented US$223 billion of sales. The main advantages in this category are that customers are willing to pay premium prices for the high-quality dining experience on offer.

The mission of the Yale School of Management is to educate leaders for, Fellowship for Public Education Leadership, Certificate of Excellence in Global Business.

#BlueOceanShift and #BlueOceanStrategy are worldwide business strategy bestsellers, helping you to move beyond competing and start creating your #blueocean.


US$259 billion was attributed to the full-service restaurant sector, which includes premium restaurants and fine dining. Our cases are available for download for free for registered users.

This document is provided as a convenience to licensed users of the raw case, Resources described below are an integral part of the case study. It all starts with shifting the focus from better serving customers of an industry to identifying and converting noncustomers into customers. First, Shake Shack was committed to high quality ingredients and efficient, operations in each of its eateries. summary, you should NOT consider yourself prepared for class. Please enter your email address. View Homework Help - CASE STUDY 3.docx from EN EN110 at Ashworth College.

Tipping: Shake Shack has also eliminated tipping, offering customers a worry-free dining experience. We use cookies to ensure you get the best experience on our website and continuing implies your consent -, Chan Kim & Renée Mauborgne’s three tiers of noncustomers framework. Restaurant industry sales in the United States have been growing over the past decade and exceeded US$536 billion in 2016. Meyer sought to differentiate Shake Shack from the long tradition of burger joints and chains that dotted the American landscape. Variety of delicious burgers, shakes, beer, wine and even traditional hot dogs are specialties of business for their consumers. From a psychological perspective, this attracts more customers and makes Shake Shack distinct from the local bar and grills where tips are standard. But the fine casual dining market space in which Shake Shack was operating was becoming increasingly crowded.

So how did it create a new market in a fiercely competitive industry? However, players in this category have two advantages.

University of Maryland, University College, DeVry University, Keller Graduate School of Management, University of Maryland, University College • BMGT 495, University of Nevada, Las Vegas • TCA 380, DeVry University, Keller Graduate School of Management • MKTG 522, University of North Georgia, Dahlonega • FINC 4480. 10.4135/9781526430496 In SAGE Business Cases. Or with a premium niche player that relies on higher pricing for premium food in the fast food category like Five Guys or Panera Bread? At Shake Shack’s newest burger-and-shake joint that just opened in New York’s West Village on Tuesday, customers can order—in addition to its classic menu—new items like chick’n bites, black sesame shakes or cold brew matcha lattes that no other Shake Shack location in the U.S. serves yet.

If it’s more accessible, like burgers and barbecue, we try to make it more refined.” – Danny Meyer in 2011 interview with Business Insider. By offering alcohol and staying open until midnight, Shake Shack attracted customers who want to enjoy alcohol with their burgers, as well as those who just wanted to have a drink with friends. See Publishing Partners, or contact case.access at yale.edu, for more information. By the end of May, investors were paying $92.86 per share.

Welcome back to the YPFS Case Directory. Shake Shack’s emphasis on hospitality and friendliness is evident in its hiring policy that lists “fun, intelligent, super friendly, high energy individuals” as requirements for hiring staff, rather than the usual pedigree and experience. The start from hot dog cart until Shake Shack birth in 2004 was a modern day aspect that may happened with roadside delicious aspect. Social media plays an important part in making customers feel that they are part of the Shake Shack brand through fun online interactions while Shake Shack uses these interactions for data analytics to better understand customer expectations and improve their product and service offerings.

Gone are the costs associated with building play places and offering happy meals. A confirmation email has been sent to you. Today, it operates in more than 100 locations internationally and is expanding all the time. Today, it has become a global phenomenon with 180 locations globally and is expanding all the time.

They refuse the premium dining experience because of its price. But observers wondered if this price represented a realistic.

Thank you for registering for the YPFS Case Directory � Yale Program on Financial Stability. The company went public on January 30, 2015 with shares listed on the New York Stock Exchange (NYSE).

Shake Shack disposed of the notion that fast food had to be precooked or even prepared quickly. Second, the company selected high traffic locations and designed each, outlet to fit into its chosen locale. Shake Shack Case Study heritage. 10.4135/9781526430496 Bourg-Meyer, Vero, Jaan Elias, Jake Thomas and Geert Rouwenhorst.

Check out this in-depth case study. For now, Shake Shack is in full swing and expanding its operations around the world. – Danny Meyer in 2011 interview with Business Insider.

But not Shake Shack. Distribution independent of the case web site is strictly prohibited.

Shake Shack restaurants are appearing in more and more cities across the world with always evolving localized menus with some items that are exclusive to each Shack. This generates a sense of locality and authenticity for Shake Shack’s stores, exuding the charm of a local mom-and-pop shop. And that is what Shake Shack did. All rights reserved.

The second-tier are refusing noncustomers. In general, players in this category open restaurants based to satisfy certain market niches. When famed fine-dining restaurateur Danny Meyer opened a hot dog cart in New York City’s Madison, Square Park in 2001, the venture drew legions of customers curious to experience Meyer’s take on all-, American street food.

Introducing Textbook Solutions. People flock to Shake Shack as a place to socialize rather than just another dining option. Please check your junk/spam folders. However, the fragmented nature of this market means customers can easily find substitutes and new restaurants can enter the market relatively easily.

Shake Shack was able to attract three groups of noncustomers of premium fast food restaurants, as specified in Chan Kim & Renée Mauborgne’s three tiers of noncustomers framework. The curious became the committed and Meyer’s little experiment acquired a permanent structure in the park – the Shake Shack. This is based on its belief that friendly workers take good care of customers and will bring them back. New Shake Shack locations were greeted by enthusiastic fans who cheered the opening of the operations in their neighborhoods.

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