ShakeShack going to a 4day workweek to improve productivity.

[NorthernDancerColt]

That tag line just made the national news on cbs.

How are they gonna staff the 2019-20 MU FreeShake chaos?

[real chili 83]

4 10-hour days?

[warriorchick]

In other news, they have announced that because of the huge losses suffered this year, they will no longer offer the "free shake for two missed opponent free throws" promotion at Marquette games.

[Cheeks]

That tag line just made the national news on cbs.

How are they gonna staff the 2019-20 MU FreeShake chaos?

Trial basis in some stores only.  May only apply to General Managers of the stores.

https://www.inc.com/minda-zetlin/shake-shack-4-day-work-week-ceo-randy-garutti-general-managers.html

[Warriors4ever]

I hated that promotion. Every time I was at a game it felt like the other team would immediately start hitting free throws as soon as it was announced. They need to find a positive promotion involving our own team.

[cheebs09]

I thought it was a great promotion. It got the crowd loud for free throws and it hit more than I thought it would. The odds of a bad enough free throw shooter getting to the line with two shots (rather than bonus or And-1) can’t be super high within the last 10 minutes isn’t a for sure thing. Even Theo makes 1/2 on average.

My only suggestion would be to have the sizes increase each time it hopenas. That way fans stay loud even if it happens at the 8 minute mark. I stole that idea from someone else on the board. Might be a nightmare to keep track of at the store though.

[warriorchick]

I thought it was a great promotion. It got the crowd loud for free throws and it hit more than I thought it would. The odds of a bad enough free throw shooter getting to the line with two shots (rather than bonus or And-1) can’t be super high within the last 10 minutes isn’t a for sure thing. Even Theo makes 1/2 on average.

My only suggestion would be to have the sizes increase each time it hopenas. That way fans stay loud even if it happens at the 8 minute mark. I stole that idea from someone else on the board. Might be a nightmare to keep track of at the store though.

Just think how loud it would be if they offered $100 to everyone instead!  They should do that!

Seriously, it was a very generous promotion, and to be honest, I would be surprised if it was back next year.  I am not sure that net net, it was a good deal for the sponsor.

[Benny B]

I find it hard to believe that Shake Shack incurred huge losses on the promotion this year.  I honestly don't know of anyone who redeemed on that promotion.

[warriorchick]

I find it hard to believe that Shake Shack incurred huge losses on the promotion this year.  I honestly don't know of anyone who redeemed on that promotion.

I have been told that the Milwaukee Shake Shacks are jammed the day after the promotion.

[Spotcheck Billy]

I think you meant the one and only Shake Shack in WI, but maybe it was.

[Warriors4ever]

None of the games I attended had a situation where the opposing player missed two after it was announced. Just our luck.

[Benny B]

I have been told that the Milwaukee Shake Shacks are jammed the day after the promotion.

Then how the hell are they losing money?   It’s a free shake with purchase, FFS.

Damn accounting tricks... “well, we lost a million dollars on all those free shakes, but we made two million dollars profit on all the extra business.”


My guess is that the answer is closer to no one redeeming the free shakes, ergo Shake Shack not seeing enough marginal business to even cover the advertising purchase. 

[warriorchick]

Then how the hell are they losing money?   It’s a free shake with purchase, FFS.

Damn accounting tricks... “well, we lost a million dollars on all those free shakes, but we made two million dollars profit on all the extra business.”


My guess is that the answer is closer to no one redeeming the free shakes, ergo Shake Shack not seeing enough marginal business to even cover the advertising purchase.

Along with the sandwiches, shakes are probably the lowest-margin items shake shack sells. Plus making them is pretty labor-intensive. I am not sure that even with a purchase, Shake Shack is making any money on those sales.
Not only that, it's driving away regular, full-paying customers who see the long line and decide to eat elsewhere.


 

[Benny B]

Along with the sandwiches, shakes are probably the lowest-margin items shake shack sells. Plus making them is pretty labor-intensive. I am not sure that even with a purchase, Shake Shack is making any money on those sales.
Not only that, it's driving away regular, full-paying customers who see the long line and decide to eat elsewhere.

There's no way that any established business would set up a random-outcome promotion that would likely result in a net loss without some sort of third-party insurance being involved (e.g. the "if it snows X inches on NYE" jeweler promotions). 

That said, it is possible that everyone who redeemed simply purchased the cheapest item on the menu, in which case, what the hell did SS expect offering something free (with purchase) to a crowd consisting of several thousand college students.

[warriorchick]

There's no way that any established business would set up a random-outcome promotion that would likely result in a net loss without some sort of third-party insurance being involved (e.g. the "if it snows X inches on NYE" jeweler promotions). 

That said, it is possible that everyone who redeemed simply purchased the cheapest item on the menu, in which case, what the hell did SS expect offering something free (with purchase) to a crowd consisting of several thousand college students.

Big companies do financially stupid promotions all the time.  This one caused a company to lose $405 million in stock value and cost the President her job:

https://nypost.com/2003/09/26/endless-crab-pigout-is-end-for-red-lobster-boss/

[Spotcheck Billy]

Big companies do financially stupid promotions all the time.  This one caused a company to lose $405 million in stock value and cost the President her job:

https://nypost.com/2003/09/26/endless-crab-pigout-is-end-for-red-lobster-boss/

https://www.youtube.com/watch?v=F541NG897vc

[jutaw22mu]

Big companies do financially stupid promotions all the time.  This one caused a company to lose $405 million in stock value and cost the President her job:

https://nypost.com/2003/09/26/endless-crab-pigout-is-end-for-red-lobster-boss/

Wow, that’s insanely stupid.... 

[Cheeks]

I find it hard to believe that Shake Shack incurred huge losses on the promotion this year.  I honestly don't know of anyone who redeemed on that promotion.

I know a bunch of students who did and they loved the promotion.  Cannot speak for the general audience, but got the kids behind the baskets excited.

[Jay Bee]

Along with the sandwiches, shakes are probably the lowest-margin items shake shack sells. Plus making them is pretty labor-intensive. I am not sure that even with a purchase, Shake Shack is making any money on those sales.
Not only that, it's driving away regular, full-paying customers who see the long line and decide to eat elsewhere.

Not sure any of the above is true, but it's also a unique advertising play (for no $?, or limited to the MASSIVE losses you cite above).