Shake Shack 2015 Annual Report Download - page 8

Table of Contents
Culinary Innovation
Shake Shack continues to innovate around our core menu. We are constantly experimenting with seasonal and local products, to enhance our menu and drive revenue. Our fine dining
heritage has afforded Shake Shack a unique opportunity to team up with some of the world's best chefs for short-
term specials such as Daniel Boulud's "Piggie Shack" to celebrate our
10th birthday at Madison Square Park or Marc Vetri's "Carbonara Burger" that ran only in Philadelphia. We devote significant resources to menu innovation and are frequently invited
to participate and compete in chef events such as the South Beach Wine and Food Festival's Burger Bash, which presents opportunities for us to test new creations that can often lead to
the introduction of new items. For example, the SmokeShack, a cheeseburger topped with all-
natural bacon, chopped cherry peppers and ShackSauce, which debuted in 2012, has
become a popular menu item and has helped drive sales.
Beloved Lifestyle Brand
In Shake Shack's 10-
year history, we have become a globally recognized brand with outsized consumer awareness relative to our current footprint. Shake Shack is a New York City
institution, a vibrant and authentic community gathering place that delivers an unparalleled experience to loyal, passionate guests and a broad, global demographic. Born in 2004, Shake
Shack grew up alongside the emergence of social media and has benefited from an ongoing love affair with passionate fans who share their real-
time experiences with friends. We aim
to establish genuine connections with our guests and the communities in which they live. Each Shack is localized with design and menu options that we believe drive a sense of
appreciation and enthusiasm for the Shake Shack brand. Shake Shack has been recognized with numerous accolades, including Bon Appétit's "The 20 Most Important Restaurants in
America" (ranked #16), TIME Magazine's "17 Most Influential Burgers of All Time" (ranked #7 for the ShackBurger) and winning "Best Burger" in 2007 and 2014 at the South Beach
Wine and Food Festival's Burger Bash.
Marketing Strategy
We are today's roadside burger stand and this identity anchors our marketing efforts. The premium positioning and brand voice, derived from the spirit, integrity and humor of Shake
Shack, are reinforced by our contemporary, responsible designs and hospitable team members who Stand For Something Good. We believe that our guests appreciate the experience of
coming to Shake Shack as a community gathering place and, thus, the heart of our marketing strategy is to communicate and connect with our guests both at our Shacks and through
social media.
Stand For Something Good
Stand For Something Good
is an invitation for our guests to align with Shake Shack's commitment to all that is good in the world and a reflection of how Shake Shack embraces these
values both internally and externally. We are dedicated to using sustainable materials and equipment, such as handmade tabletops constructed from reclaimed bowling alleys. We
source all-natural, hormone and antibiotic-
free beef to make our proprietary burger blend because we believe there are no shortcuts to quality. Recently, we have added a Stand For
Something Good TV at each Shack to tell our story to our guests through photos, graphics and informative imagery containing information on our suppliers, community relationships
and company initiatives.
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Frozen Custard
Our premium, dense, rich and creamy ice cream, spun daily on-site, is crafted from our proprietary vanilla and chocolate recipes using only real sugar—
no
corn syrup—
and milk from dairy farmers who pledge not to use artificial growth hormones. Shakes remain our guests' favorite in this category and are
scooped and spun to order. Our concretes are made by blending frozen custard at high speed with premium mix-
ins. Since each Shake Shack intends to
mirror its community, each Shack has signature concretes, distinct to its location, and uses locally-sourced mix-
ins made by artisanal producers whenever
possible. Also, each month Shake Shack unveils a specialized custard calendar with seasonally changing flavors. The flavors change every month, with
favorites repeating throughout the year. Our culinary team also uses the custard menu to highlight local, seasonal and premium ingredients. Not only does
the custard calendar keep the custard section of the menu varied and bolster guest frequency, but it also helps distinguish our menu relative to other burger
chains.
Beer, Wine and Beverages
Our proprietary ShackMeister Ale, brewed by Brooklyn Brewery, was specifically crafted to complement the flavor profile of a ShackBurger, and our local
beer selections are tailored to each Shack's geography. When it comes to wine, we believe that our Shack Red and Shack White, grown and bottled
exclusively by Frog's Leap Vineyards in Napa Valley, accentuate our fine dining ethos and provide our guests with premium beverage options not
commonly found at burger concepts. In addition, we serve draft Root Beer, seasonal freshly-squeezed lemonade, organic iced tea and Shack
2
0 bottled
water, 1% of sales from which support the cleanup of water sources around the world.
Dogs Are Welcome Too
We believe that many dog owners treat their four-
legged friends as family members. From our first Shack at Madison Square Park, we wanted to invite
dogs to be part of the community gathering experience and developed the "Woof" section on our menu. ShackBurger dog biscuits, peanut butter sauce and
vanilla custard make up our signature Pooch-ini®, which is available at Shacks with an outdoor space. We also serve dog biscuits to-
go, handcrafted
exclusively for us by a New York-based bakery.