Thank you KS. I will continue on the innovations that Shake Shack has implemented.

Shake
shack has also come up with the VIP sit-down experience called The Truffle Table. This is
considered an experience innovation because it is a new service concept that allows the
customer to enjoy Shake Shack’s gourmet burgers in a fine-dining setting. They also ensured
their tangibles are suited for the new experience and innovated new menus such as the
limited edition Truffle burger as well as their own canned wine.

Next, what better way to empathise with your customers, than to also pay attention to their
best-friend’s need. Shake shack integrated dog food items into their menus such as the
Pooch-ini and Bag-O-bones. This is a service line extension to cater to people who values
their dogs and don’t want their dogs to be left out while they are enjoying shake shack’s
food.

Last but not least, shake shack also continuously implement service design thinking in
coming up with more innovative ways to reach their customers. For example, they listened
to their customers need for a catering service for their events. That way, shake shack can
now accept catering orders for events, which we think is also good marketing for the brand
as non-customers that happens to be at the event will also get to know about Shake Shack.
Shake shack was also trying a new protoype of Shake Shack Bars where they will serve
alcoholic shakes and frozen custards.

I will now move on to shake shack’s business model and its strengths & weaknesses. So if we
talk about F&B business, there is usually a spectrum of quick service restaurant and full
service restaurant, shake shack would be somewhere in between, or even outside. Their
strategic direction is to innovate to reimagine activity. They are still providing fast food, but
they tweak certain aspects to enhance and give a different the customer experience. Shake
shack also emphasizes on the use of premium ingredients to create burgers. On top of that
they also appeal to the people with their Stand for something good values which focuses on
sustainability and community.

In terms of outlets, they own the US outlets but they do franchise licensing for international
outlets, so as to overcome the administrative distance such as local government policies

So the strength of their business model lies in their healthy profit margin which allows them
to innovate and work continuously to close the service gaps. With their business model,
shake shack has the appropriate brand positioning. Using social media and tapping on the
community to co-create user-generated content. They also has a good human capital as
they believed in respecting their employees first so that they can take care of the customers
and bring them back. Lastly, they maintained a good relationship with their suppliers and
even use technology to ensure a good supply of quality ingredients

The weakness of the business model though is that firstly, some people might think that the
price is too high. They also need to be able to continuously listen to their customers and
innovate to stay competitive against substitute and relevant i.e. eating at normal
restaurants. Also, for international outlets, there might exist a communication gap as they
are not able to get their hands on the same quality ingredients as the one in the US due to
international regulations. For example, export limit on USDA beef to middle east.