Kaufman & Forman, P.C.
Call to arrange a consultation
678-957-7769 | 770-390-9200
Contact Us
practice areas

Slow growth was part of Shake Shack's business formation

Georgia business owners may have heard that trendy burger purveyor Shake Shack is planning to open only a modest number of new establishments across the United States. Growth is a central factor in nearly every business plan, and ordinarily, business formation anticipates rapid growth once off the ground. However, Shake Shack is in no hurry to expand and, instead, decided to take its time and build slowly.

Currently, the chain has 63 locations. Approximately half of them are spread across the country, including some here in Georgia, and the rest are overseas. The company recently announced that it plans to open only 10 stores per year for the foreseeable future. By comparison, other burger chains such as Five Guys opened hundreds of stores for three years between 2010 and 2013. Over the course of the last three years, fast food giant McDonald's opened an average of 84 locations across the United States each year.

The competition for burger lovers in the United States may provide the reason why Shake Shack is choosing to proceed slowly in this country while expanding outside of it. Staying power is often a factor that can make or break a business. By limiting the number of store openings, Shake Shack seems to be more concerned with longevity instead of fast profits.

Growing a business can be a tricky proposition. Market saturation of one type of product can often dilute profits and result in lower profits in the long run. When considering growth during business formation, today's economy and concerns about competition bear careful consideration. Before taking steps to create and build a new business, it may be beneficial to thoroughly explore all of the business and legal issues that could affect the success of the venture.

Source: Bloomberg Business, "Shake Shack's Modest Growth Plan", Venessa Wong, Jan. 30, 2015

No Comments

Leave a comment
Comment Information

Contact Kaufman & Forman, P.C. Now

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

get Legal Help Now

Kaufman & Forman, P.C.
8215 Roswell Road
Building 800
Atlanta, GA 30350

Toll Free: 800-461-5864
Phone: 678-957-7769
Fax: 770-395-6720
Atlanta Law Office Map

Review Us

Robert Kaufman has been selected as a 2013 Top Rated Lawyer in ‘Commercial Litigation’ as will be published in the May issue of The American Lawyer & Corporate Counsel magazine.Alex Kaufman has been selected as a 2013 Top Rated Lawyer in ‘Commercial Litigation’ as will be published in the December issue of The American Lawyer & Corporate Counsel magazine.

*AV Preeminent and BV Distinguished are certification marks of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies. Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the bar and the judiciary. Martindale-Hubbell ratings fall into two categories: legal ability and general ethical standards.