Get ready food courts of America: Shake Shack, Danny Meyer’s hip burger hut, just filed an initial public offering for $100 million.
The company that started as a literal shack in Madison Square Park 10 years ago now has 63 locations worldwide that brought in a total revenue of $82.5 million in 2013 ($83.8 million as of September 2014). The Shack has seen some particularly fast growth in the last four years, going from seven to over 50 locations, and more than quadrupling sales.
Meyer, the CEO of Union Square Hospitality Group, attributes his brand’s success to its culture: “We have a company called Hospitality Quotient, which teaches companies who are already the best in the world at what they do to become the best in the world at how they make people feel,” he told Fast Company in 2012. “So we use Hospitality Quotient to train the staff in with Shake Shacks abroad.”
Of course, part of the appeal of Shake Shack, like anything cool, is its scarcity, a point the company admits in its S-1 filing. “In addition, as has happened when other restaurant concepts have tried to expand, we may find that our concept has limited appeal in new markets or we may experience a decline in the popularity of our concept in the markets in which we operate.”
Indeed, why line up around the block for a signature Shack Burger in NYC if you can get one at the mall back home?