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Shake Shack closes six locations in California
Massachusetts

Shake Shack closes six locations in California

CALIFORNIA – Six Shake Shack locations in California will be closed, according to the fast-food chain.

The restaurants – in Oakland, Bunker Hill in Los Angeles, Culver City, Koreatown, Silver Lake and Westfield Topanga – were rated as underperforming and were not expected to generate “acceptable earnings,” Shake Shack said in a filing with the U.S. Securities and Exchange Commission. The chain currently has more than 40 locations in the Golden State.

In addition, three more locations in Texas and Ohio are facing closure, bringing the total to nine.

According to CEO Rob Lynch, the company will open 80 new restaurants in 2024.

“Shake Shack is in a period of significant growth and plans to open 40 new company-owned Shacks and 40 additional licensed Shacks this year,” Lynch said in a prepared statement. “We are committed to sustainable growth and to providing our guests with the best possible experience.”

“After careful consideration, we have made the difficult decision to close a small group of Shacks for a variety of reasons, including underperformance.”

Management at the closed restaurants will be offered a job at a nearby Shake Shack and hourly workers can be rehired at other locations, the filing said. It says workers who are not relocated or rehired will receive up to 60 days’ pay. Employees were notified of the plan on Tuesday and the closures are expected to be completed by Sept. 25.

The closure of all nine locations is expected to cost Shake Shack up to $30 million before taxes in the third quarter, the statement said.

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