Dive Brief:

• Shack Shack will develop a loyalty program in 2025 CEO Rob Lynch said on the company’s Q3 earnings call.
• The new program will build on the brand’s success at driving sales, Lynch said, noting that same-store sales increased 4.4% and traffic was positive in the third quarter.
• A comprehensive loyalty program will complement Shake Shack’s emphasis on technology, including the digital kiosks that now comprise its largest ordering channel. 

Dive Insight:

While Shake Shack’s loyalty program may eventually be a driver of sales and retention, Lynch cautioned that it’s unlikely to be implemented in time to significantly boost sales in 2025.

Shake Shack has an app and digital channels are important in driving sales. But the chain lacks a systematic loyalty program on par with other fast casual giants, like Chipotle.

“I can't help but find that a bit ironic given that Shake Shack was built on the principles and culture of enlightened hospitality,” Lynch said. “Given this heritage, we have an outsized opportunity to deliver enlightened hospitality in a world that increasingly craves it, but across a digital footprint.”

With consumer price sensitivity leading to reduced traffic or slow sales growth industrywide, loyalty programs can help restaurants drive repeat visits and improve value propositions. Cava reworked its rewards structure this year, while Jollibee launched its first loyalty program in October.