Shake Shack is experiencing losses

In its preliminary first-quarter results, Shake Shack revealed a 12.8% drop in same-store sales. While this might have been recoverable, the pandemic has led to a steep decline of 28.5% in business. Following this situation, the fast-food company has had to lay off 1,000 employees and top executives took a pay cut. The firm’s CEO advanced, “Given the ongoing impact of COVID-19 on our business, our Shack teams have demonstrated their entrepreneurial spirit and continued to adapt our operating models and business strategy”. For instance, they have focussed on their digital toolbox, boosted engagement on social media and expanded partnerships with delivery platforms such as UberEats.

Shake Shack is introducing new measures to cut down losses