Dive Brief:
- Shake Shack CEO Randy Garutti will retire from his position in 2024 once the company has found his successor, the chain said in a press release Monday.
- Garutti has served as Shake Shack’s CEO since 2011 after holding the COO position for four years, according to his LinkedIn profile.
- Under Garutti’s leadership, the restaurant chain grew to over 500 units in 33 states and 18 countries.
Dive Insight:
Garutti will depart the restaurant company as it prepares to open another 40 corporate-owned units and 40 licensed units next year. Shake Shack is also in the process of developing new drive-thru prototypes that will help bring down net investment costs down by 10%, Garutti said on the company’s Q3 earnings call. As of Q3, Shake Shack had 21 company-operated drive-thrus open.
“Our seasoned leadership team is exceptional and well positioned to deliver on our ambitious plans,” Garutti said in a press release. “I have never been more optimistic about Shake Shack's potential and am deeply committed to ensuring a seamless transition.”
Shake Shack has been rapidly growing. It opened 30 company-owned restaurants in 2023 as of the third quarter, and Garutti said in November that the chain expects to reach 40 corporate restaurant openings by the end of the year. It also plans to open 40 licensed units, bringing its total new units for 2023 to about 80, higher than the chain’s original 70-unit goal for the year.
The company also aims to surpass $1 billion in revenue this year, Garruti said in a statement. Shake Shack reported over $800 million in revenue for Sept. 27 year to date. Last quarter, same-store sales rose 2.3% compared to 2022 and net income was $8.1 million compared to a loss of over $2 million in the year-ago quarter.
Shake Shack founder Danny Meyer originally hired Garutti in 2000 as general manager for Union Square Hospitality’s Union Square Cafe and Tabla restaurants. He was the company’s youngest-ever manager for these restaurants. Meyer opened a hot dog cart in Eleven Madison Park in 2001 and turned it into the first Shake Shack kiosk three years later. In 2007, Garutti saw a “for rent” sign in the Upper West Side of Manhattan and encouraged Meyer to open a second Shake Shack. The business accelerated from there and went public in 2015.
