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  • Subject area(s): Marketing
  • Price: Free download
  • Published on: 14th September 2019
  • File format: Text
  • Number of pages: 2

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hake Shack has incorporated the new fad of being healthy and eating fresh with the consistent popularity of “fast food restaurants”.  It has opened up in various new locations since it was first introduced in New York; and I believe their entry into Canada will be a beneficial business move.

Recently, people have become highly aware of what they are putting into their bodies and are intrigued when they hear “fresh, healthy, and organic”. Shake Shack is already magnifying on this trend by promoting their use of “100% all-natural angus beef with no hormones and antibiotics” (Shake Shack). By supporting fresh, nourishing, and wholesome ingredients they are sure to draw in a large customer base - especially in Vancouver. Furthermore, as Vancouver has many young students, Shake Shack's use of social media as their main advertising strategy will gain the attention of the younger population. Moreover, hospitality is a huge part of Shake Shack's brand. The CEO, Danny Meyer, even refers to customers as “guests”. Friendliness and warmth go a long way for any restaurant, and since it is one of Shake Shack's main missions, it will be a factor in winning people over in the Vancouver area. Fast food restaurants often attract families – typically suggesting a large gap in customer age groups. As a result, Shake Shack's variety in menu will be able to please the diverse customer base. Additionally, Vancouver has very modern contemporary architecture, Shake Shack's restaurants also have a clean new look to it, meaning it will fit with the other businesses well.

However, while Shake Shack has taken a positive twist on the fast food chain, it isn't the first restaurant to try and re-invent the industry: five guys and chipotle are just two other examples. It will take a lot to make Shake Shack stand out against these other restaurants and differ their own motives from the other chains. Although, Shake Shack has a very different approach to the market then the typical fast food restaurant, their price range may drive their customers back to places like McDonalds and KFC. Shake Shack's use of freshly grown ingredients has caused their prices to be generally more expensive than other fast food restaurants such as, A&W and Burger King, which may deter customers from eating at Shack Shake for a quick meal. Although, Shake Shack is put under the category of “fast food restaurants”, their service may not be as fast paced as some would expect, due to their use of fresh ingredients. Many people go to these types of restaurants for a quick meal on the go, however Shake Shack may lose some sales if their service leaves customers impatient. Although, it was mentioned before that Shakes Shack's use of social media for advertising will draw in a large portion of the younger generation, their lack of “regular” advertising may harm their chances of brining in older customers.

Being adventurous with your menu can be risky, however, if done right it can attract many new customers. Shake Shack keeps their menu new and exciting – recently bringing out an eel burger in partnership with “Michelin award-winning chef, Fergus Henderson” (Taylor, K, 2017). Furthermore, fast food can be appealing to a wide range of individuals; therefore, the possibility for growing and marketing towards new people will always be an option. This can be especially useful with Vancouver's diverse population. Expanding Shake Shack and opening new restaurants can help establish the brand and make it well known across the world. Moreover, Shake Shack's recent new mobile app created to help make service faster has opened up the possibility of the industry growing more online - for example, an online delivery service. Building the company online can make it both more accessible and more relevant.

Shake Shack is a fairly new franchise; as a result, it will need to take time before they build up customer loyalty. This will be an increased problem if they enter Vancouver since there are no other locations in Canada. This ties into the fact that the company will face a lot of competition with the more well-known and established fast food restaurants already in the area. They will need to have smart marketing towards certain demographics in Vancouver to ensure they choose their restaurant over the others. Furthermore, many people are fans of drive-thru's, since it provides fast service and takes out the hassle of waiting in lines. However, none of Shake Shacks restaurants include them, which may mean they will lose the customers looking for a quick lunch on their break or a morning snack on the way to work. Although the Shake Shack menu is very diverse, it doesn't include much options for people with dietary restrictions. Even though this is the case for most fast food restaurants, this may impose a threat when they are trying to become established in the area – especially as the number of vegetarians and vegans is growing.

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