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Shake Shack Loses Millions in Sales Following Protests
Shake Shack said it lost an estimated $3.2 million in June sales. Store closures and decreased operating hours due to nationwide protests following George Floyd’s death caused this drop.
“As always, and especially during this recovery period, our priority remains the safety of our team and our communities,” said Shake Shack CEO Randy Garutti. “Amidst our gradual sales recovery, we've started to open new Shacks again and are looking to the significant growth opportunity that we believe lies ahead for Shake Shack.”
The company’s second-quarter total revenue exceeded $90 million. According to Fox Business, the establishment paid hourly employees for normally scheduled hours that became short or that they canceled.
Shake Shack lost millions due to George Floyd protests, curfews https://t.co/99Ida2tJJ7 #FoxBusiness
— Lon Walters 🇺🇸 🇺🇸 (@LonWalters) July 7, 2020
The company opened four company-operated locations during the second quarter in Sacramento, California, Los Angeles; Charlotte, North Carolina; and St. Louis. This is despite the COVID-19 pandemic’s effects and business closures.
Sixty percent of the company’s sales during the week ending July 1st were digital orders, as compared to 84 percent during the week ending April 29th.
According to Fox Business, Shake Shack also received criticism after obtaining a $10 million small business loan. The company later returned this sum.
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