shake shack closing california locations: Shake Shack is shutting its doors at the Oakland location, marking a significant shift for the popular burger chain. The closure, which affects the outlet at 1954 Telegraph Ave. in the Uptown Station complex, is part of a broader strategy by the New York-based company to address underperforming restaurants across the country. This move comes as downtown Oakland continues to struggle with economic and social challenges.
Shake Shack’s Oakland Closure: A Deeper Look
The Oakland Shake Shack, which opened in late 2020 in the revitalized Uptown Station, is the first in the Bay Area to close. This decision follows the spring closure of In-N-Out’s Oakland restaurant and reflects a series of strategic adjustments by Shake Shack. The company is also shuttering five locations in Southern California and other sites in Houston and Columbus, Ohio, by September 25.
According to a regulatory filing, the company cites “changes in the trade area” and “cannibalizing sales” from nearby Shake Shack locations as reasons for these closures. Despite this downsizing, Shake Shack remains committed to growth, planning to open around 40 new company-owned and 40 franchise locations within the year.
The Impact on Downtown Oakland
Downtown Oakland has faced numerous challenges, including a decline in foot traffic due to remote work and rising crime rates. While it’s unclear if crime directly impacted Shake Shack’s sales, the broader economic conditions have certainly contributed to a tough environment for local businesses. Shake Shack’s closure highlights the ongoing struggle of downtown merchants to attract and retain customers in a changing urban landscape.
Shake Shack’s Expansion and Future Plans
Despite the closures, Shake Shack is not retreating from its expansion plans. The company continues to invest in new locations, including several in the Bay Area. Other Shake Shack sites in the region include the Emporium Centre in San Francisco, Stonestown Galleria, and several shopping centers across the Bay Area, with plans for a new location at Westfield Oakridge in San Jose.
The company is also focusing on maintaining operations at its other existing locations. Employees from the closing restaurants are eligible for rehire at nearby Shake Shack locations or will receive 60 days of pay. Managers are being offered positions at other restaurants in the chain.
Financial Impact and Next Steps
The closures are expected to cost Shake Shack between $28 million to $30 million, including expenses related to terminated leases. While the financial hit is significant, the company’s strategy to close underperforming sites and focus on new openings reflects a pragmatic approach to maintaining long-term growth and sustainability.
In summary, the closure of Shake Shack’s Oakland location is a notable development in the chain’s ongoing adjustments to market conditions. While this move signals a strategic retreat from less profitable areas, Shake Shack’s commitment to expanding and refining its footprint demonstrates resilience and adaptability in a challenging retail environment.
