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Description

Prior to beginning work on this assignment,

Review the required chapters from

Applied Psychology in Talent Management

as necessary.

Watch the

Final Presentation

video above with Brenda Forde, Program Chair of MBA.

Visit the

Beefsteak Case Study

page to review the Company Background Information Packet and the

Company Background

video.

For this class, The Beefsteak Reinforcing Culture Through Human Capital Development Case Study Analysis final presentation assignment will apply toward Folio.

Scenario

Beefsteak is a fast-casual restaurant concept from acclaimed Chef José Andrés that focuses on the “unsung power of vegetables.” José Andrés is a world-renowned chef and owner of a number of restaurants. He was nominated for the 2019 Nobel Peace Prize for his work with disaster relief through his non-profit organization World Central Kitchen. Andrés’s mission is to change the world through the power of food. Jim Biafore, Senior Director for Beefsteak, knows that culture—much like any good business—is forever changing, adapting to its environment. As Beefsteak grows, he sees the need to develop employees not only for return on investment, but also for maintenance of the culture and values espoused from the larger organization, ThinkFoodGroup. Beefsteak needs to develop programs to develop its employees in line with the company’s mission and strategic direction.

Assume the role of a Beefsteak consultant dedicated to creating and reinforcing the company’s ideal culture. Jim Biafore wants you to assess Beefsteak’s current company culture, determine ways that it can be improved, forecast potential changes through growth, and provide a plan for sustaining cultural longevity through employees.

Using the materials provided to you, as well as at least two to three additional resources pertaining to human resource management, prepare a PowerPoint presentation with audio on the proposal for a strategic human capital development program focused on the transmission of company core values. You may use the University of Arizona Global Campus resource,

Presentation Tips

(Links to an external site.)

, for assistance on adding audio to your presentation.

To communicate with Beefsteak’s Jim Biafore and executive team, you will present your analysis using PowerPoint with audio and speaker notes. The analysis should be eight to 10 slides which include speaker notes. The strategic human capital analysis should reinforce the culture through

Recruitment

Training

Retention

Team Development

Organizational Responsibility.

The analysis should also consider Week 4’s contemporary human capital topic and predictive analysis.

Consider the following questions as you prepare your analysis:

What might you infer about Beefsteak’s current company culture? Does it have elements of organizational responsibility?

What key characteristics should Beefsteak recruiters look for in candidates, especially with regard to how someone will fit into the company culture?

How does job training and employee development differ from a cultural standpoint?

What motivates individuals or employees to believe in a cause?

What do employees want out of development programs?

What about employee development programs benefits the company?

Why is it important to think about employee development at this stage?

What contemporary human capital issues might you consider at Beefsteak?

Is it possible to use some predictive analysis technique?

How might things differ if Beefsteak expands globally rather than just in the U.S.?

How do you plan to measure the success/failure of your culture strategy? What steps will you take to ensure that the culture is shifting and/or being reinforced in that way that you intend?

In this presentation analysis,

Determine ways to improve the company’s culture in a growth environment.

Assess and make recommendations regarding the company’s recruiting, training, development, and retention strategies.

Integrate contemporary human capital topics and predictive analysis.

Discuss potential global expansion on the company culture and success.

Formulate an overall organized and concise proposal for the company’s ideal culture supported through human resource management.

The Beefsteak Reinforcing Culture Through Human Capital Development Case Study Analysis Audio PowerPoint presentation,

Must be eight to 10 slides in length (not including title and references slides) and formatted according to APA style as outlined in the UAGC Writing Center’s

How to Make a PowerPoint Presentation

(Links to an external site.)

.

Must include all speaker notes for each task on your presentation slides.

Must include a separate title slide with the following:

Title of the proposal

Student’s name

Course name and number

Instructor’s name

Date submitted

Must use two scholarly and/or credible sources in addition to the course text and Beefsteak case study

Company Background Packet
Copyright © Real Time Cases
05252018
All Rights Reserved.
The content of this document and accompanying videos may not be reproduced or distributed
without the express written consent of Real Time Cases Inc. Users acknowledge that the
document and accompanying case videos, and all copyright and other intellectual and
proprietary rights therein, are and at all times, shall remain the property of Real Time Cases
Inc. and its licensors, and their respective assignees. Users agree to respect and not to alter,
remove, or conceal any copyright, trademark, trade name, or other proprietary marking that
appears in this document.
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COMPANY PROFILE ……………………………………………………… 4
Leadership Team …………………………………………………………………..4
About Chef José Andrés …………………………………………………………5
About ThinkFoodGroup …………………………………………………………..5
About Beefsteak …………………………………………………………………….5
History and Development ………………………………………………………11
THE BUSINESS MODEL ………………………………………………. 12
The Restaurant Industry: Fast-Casual Segment ……………………….13
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Company Profile
Company Name:
Location:
Founded:
Website:
Holding Type:
Company Size:
Estimated Valuation:
Industry:
Beefsteak LLC
Washington, DC
March 2015
Beefsteakveggies.com
Subsidiary of ThinkFoodGroup
5 Beefsteak locations
N/A
Restaurant Industry, Fast-Casual Segment
Leadership Team
José Andrés
Jim Biafore
President, ThinkFoodGroup
Senior Director of Beefsteak
Kimberly Grant
Michael Doneff
CEO, ThinkFoodGroup
CMO, Beefsteak
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About Chef José Andrés1
Named to Time’s “100” Most Influential list and awarded “Outstanding Chef” by the James
Beard Foundation, José Andrés is an internationally-recognized culinary innovator, passionate
advocate for food and hunger issues, author, educator, television personality and chef/owner
of ThinkFoodGroup. José and his TFG team are renowned for a host of celebrated dining
concepts in Washington, DC, Las Vegas, Los Angeles, Miami and Puerto Rico, including
minibar by José Andrés, Jaleo, Oyamel, Zaytinya and the Bazaar by José Andrés at SLS
Hotels in Beverly Hills, Las Vegas and South Beach.2
Having fed millions of people in his restaurants over the past 20 years, José and his team are
always exploring the endless possibilities of what food — amazing, delicious, fresh food — can
do for the world. Uniting that mission with his fervent passion for vegetables, José conceived of
Beefsteak as a way to unleash their potential to feed many millions more.
About ThinkFoodGroup
ThinkFoodGroup (TFG) is the innovative company of more than 1000 diverse individuals
behind José Andrés’ restaurants, hotels, food products, media, educational initiatives and
philanthropy. Together with partner Rob Wilder, he pursues the mission of changing the world
through the power of food. Since 1993, TFG restaurants reflect the authentic roots of each
concept, and showcase José’s passion for telling the stories of a culture through food.
José Andrés is an internationally-recognized culinary innovator, author, educator, television
personality, humanitarian and chef/owner of ThinkFoodGroup. A pioneer of Spanish tapas in
the United States, he is also known for his groundbreaking avant-garde cuisine. Andrés’
award-winning group of restaurants includes locations in Washington D.C., Miami, Puerto
Rico, Las Vegas, and Los Angeles, as well as in Mexico City, his first location outside the
United States. He is a committed advocate on food and hunger issues and is known for
championing the role of chefs in the national debate on food policy. 3 See a historical timeline of
José’s remarkable career with TFG.
About Beefsteak
When Chef José Andrés contracted Brosmind to sketch the thematic artwork4 to adorn the
walls of Beefsteak, a new fast-casual concept featuring veggies, he clearly did not want to
mention the obvious boring facts about vegetables, i.e., healthy, vegan and vegetarian, etc. As
José takes a first peek at the art concept, he says in a video5, “I wanted to create a universe of
vegetables where they were happy, misbehaving, some of them beautiful, some ugly; always
having fun, loving each other at times, crying, laughing, attacking the meat world.” He wanted
to show that vegetables are sexy, even unbelievable, and we do not understand enough about
them and our relationship with vegetables can be much more meaningful. Beefsteak has
profound ambitions for José’s first foray into what Americans call fast-casual. It seems José
1
http://www.joseandres.com/en_us/bio Biography. About José Andrés
See more about José and a chronology of his TFG restaurant launches: http://www.Joséandres.com/en_us/bio
3
http://www.joseandres.com/en_us/bio Biography. About José Andrés
4
See Exhibit 1.
5
See José’s reaction to Brosmind’s artistic depiction of the Beefsteak mission to rethink our relationship with vegetables
2
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and the TFG team has managed to extend the brand to concepts running the gamut from fastcasual and even a Food Truck up to José’s high-end establishments, such as the elite,
luxurious fine dining experience of José’s minibar.6
Single Concepts:
• Oyamel (contemporary Mexican cuisine)
• Zaytinya (a mezze-inspired menu)
• Minibar by José Andrés (molecular gastronomy at its highest level)
• Barmini by José Andrés (a cutting-edge bar within minibar)
• Pepe, the Food Truck (featuring Spanish flauta sandwiches)
• Tres (bistro comfort food with a twist at the SLS Beverly Hills Hotel)
• Saam (a multicourse tasting menu)
• China Poblano (a blend of Chinese and Mexican in The Cosmopolitan of Las Vegas)
• e by José Andrés (Spanish avant-garde dishes at The Cosmopolitan of Las Vegas)
• Hyde Beach (a nightlife experience for the elite)
• Mi Casa (Spanish and island flavors at the Ritz-Carlton Reserve, Puerto Rico)
• America Eats Tavern (American classics in Tysons Corner, VA)
Multiple locations:
• Jaleo (the flavors of Spain in Washington, DC, Bethesda, MD, Crystal City, VA, Las Vegas)
• The Bazaar by José Andrés (reimagined Spanish cuisine at the SLS Hotel in Beverly Hills and
Miami Beach)
• Beefsteak (Vegetables, unleashed. Launched at GWU in DC reaching a total of five locations in
2016 around DC and Philadelphia)
Exhibit 1: Beefsteak theme artwork, by Brosmind.
Source: http://beefsteakveggies.com
6
https://www.youtube.com/watch?v=X0NOdsZlM1U
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A Bold New Concept from Chef José Andrés
Beefsteak is fast, crave-worthy food
created by one of America’s most
respected chefs. The food brings the
culinary craft into the everyday, lovingly
cooked to order and tailor made for
today’s busy lifestyles. We’re not
vegetarian, but we put veggies center
stage, showcasing their complexity,
flavor, and natural, amazing
deliciousness.
Exhibit 2: Customers ordering inside Beefsteak
Source: http://beefsteakveggies.com/category/press/
Fresh, Market-Drive Vegetables Take Center Stage
Beefsteak celebrates the incredible, unsung power of vegetables, showcasing the season’s
best and year-round favorites to create a hearty, oh-so-delicious meal you can feel good
about. The name is a playful take on the power of vegetables — because a tomato, or any
veggie, can be every bit as flavorful and robust as a cut of meat! Try them and see.
Exhibit 3: Jose’s favorite: Beefsteak tomato sandwich.
Source: http://www.wellandgood.com/good-food/who-will-be-the-next-sweetgreen/slide/3/
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The Bounty of America in a Bowl
Countless combinations of flash-prepared vegetables, hearty warm grains, freshly-made
sauces, crisp and fresh toppings and (if you want) a bit of meat or protein. The result? A wildly
flavorful, nourishing meal in a bowl – composed just the way you like it.
Exhibit 4: Beefsteak Bowls
Source: http://goop.com/specialty/washington-dc/dupont-circle/beefsteak/
Beefsteak is America’s bounty in a bowl — offered in myriad combinations and cooked to
perfection right in front of you. All brought to you by one of the country’s leading chefs, José
Andrés. Beefsteak is not vegetarian, though the food proudly celebrates the unsung power of
vegetables — as farm-fresh as possible, whether year-round favorites or the best of each
season. Deliciously matched with hearty grains, freshly-made sauces, crisp greens, and
flavorful toppings. And while it is certainly no steakhouse either, if you want to add a bit of
something meaty to top off your bowl, they offer some delicious choices. Vegetables are
undeniably the star here, unleashed to showcase their full potential and create a wildly
flavorful, nourishing meal — composed just the way you like it. Simple yet crave-worthy food
that fits your lifestyle and your wallet. This is real food, real quick and really good — whether a
quick, hearty meal on the go or a relaxing place to unwind when you’re off the clock. 7
7
http://beefsteakveggies.com/who-we-are/
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The Menu8
Whether composing your own bowl or choosing from one of the chef-inspired combinations,
you’ll find a world of delicious possibilities at Beefsteak — all centered around the magic of
vegetables, flash-prepared right in front of you. Start with a choice of grains, add a housemade sauce, then your freshly cooked vegetables. Next? Perhaps some meat! Then, a choice
of fresh and crunchy — from crisp greens to sesame seeds to kimchi. And there you have it,
the sunshine and bounty of America in a bowl. See menu here.9
Exhibit 5: #howibeefsteak Social Media Campaign
Source: http://beefsteakveggies.com/
Social Media
On September 2, 2015 the company announced a reward campaign for sharing
#HOWIBEEFSTEAK on social media through October 15th 2015. The official rules were posted
online as follows:
“With more than seven million combinations to create the perfect Beefsteak bowl, we want you
to show us how YOU Beefsteak! Build your own custom creation and tweet or Instagram a
photo of it using #howibeefsteak and tagging our handles, @beefsteakveggies on Instagram or
@beefsteak on Twitter, for chances to win!
8
9
There are more than seven million combinations to create a Beefsteak bowl.
http://beefsteakveggies.com/menu/
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From now until October 15th, one winner each week will receive a $25 gift card, and for the
grand prize, one lucky fan will win a Beefsteak party for up to five friends. Now that’s VEGGIE
POWER to the people!
Need inspiration? We’ve invited some of our favorite DC Instagrammers to kick things off!
Follow @Tallulahalexandra, @properkidprobs, @thisisjamesj, @raisaaziz, and
@pandaheadmorgan to check out their featured #howibeefsteak bowls.”1011
Exhibit 6: A Beefsteak meal & inside of a Beefsteak restaurant
Source: http://beefsteakveggies.com/
Critical Acclaim
Beefsteak was awarded the prize for the best veggie burger in DC, although many fans would
claim it would hold its Beefsteak burger could hold its own against beef from cows any day. In
fact, it made the top of this list of the best 21 burgers in DC, so it is officially true; a vegetable
can be sexier than meat.
10
11
http://beefsteakveggies.com/category/press/
See Beefsteak’s Facebook page: www.facebook.com/beefsteakveggies
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“Trust José Andrés to drastically
rethink what a meat-free burger
should be at his veg-obsessed fastcasual concept Beefsteak. Instead of
making a patty out of produce, he
simply uses a generous slice of beet
marinated in red wine vinegar.
(Tomato is subbed in when it’s in
season.) The surprisingly substantial
disc comes on a bouncy brioche bun
with a generous swipe of slightly
spicy vegan chipotle mayo, pickled
red onions, and sprouts I could do
without (add avocado instead).
Though the flavors are drastically
different, it feels like you’re
chomping into a quarter pounder—
minus the guilt.”
—Nevin Martell12
Exhibit 8: The award-winning Beefsteak veggie burger
Source: legacy.washingtoncitypaper.com/bestofdc/foodanddrink/2016/best-veggie-burger
Online Ordering and Loyalty App
The managers at Beefsteak are keen on utilizing technology in ways that enhance the
customer experience. One way they offer greater convenience for guests is through online
ordering and pre-payment to skip the line. Additionally, the loyalty app can be used to earn
veggie rewards of $9 back on $99 spent. Management is keen to innovate on loyalty app
ideas, and has not yet come to a determination of how a reimagined app should look.
History and Development
Beefsteak was launched in March 2015 in Washington, DC on the George Washington
University campus, followed by locations in Dupont Circle, then Tenleytown and the campus of
University of Pennsylvania in 2016. The seeds were sown in the mind of José years
beforehand. José noticed that Americans have been demanding more and more vegetables,
12
Best Veggie Burger. http://legacy.washingtoncitypaper.com/bestofdc/foodanddrink/2016/best-veggie-burger
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and he had a vision that he could make people see the light; in a genius bit of foreshadowing
in 2010, José tipped his hand in an interview with Anderson Cooper by telling him vegetables
were “sexier than a piece of chicken.”13
In the development of Beefsteak, the José led the TFG creative team to engineer a custom
designed steaming bath assembly line process to dunk and steam any assortment of veggies
in 90 seconds. One trick of the trade the team developed is cutting each vegetable to a specific
size and shape so that each item can cook through in proper alignment. Given TFG’s ambition
to scale the chain, it is noteworthy that the physical storefront, kitchen and interior design can
be constructed within 3 months of breaking ground.
Planning ahead for expansion, SEC filings document Chef José Andrés raised $9.25 million in
growth capital for Beefsteak LLC, which lists Andrés, CEO Kimberly Grant, and CFO Gary
Evans as principals, according to the December 2015 Securities and Exchange Commission
filing. In a tweet, Andrés said he is humbled by the opportunity the funding provides. “Success
or failure, at least we tried to bring better food to the people of America,” he tweeted. 14
To fully understand how Beefsteak fits into the broader story of ThinkFoodGroup, refer to the
history of TFG here and about José’s restaurants here, as well as the JoseAndres.com site’s
calendar which, along with social and other media campaigns, keeps fans informed of
upcoming events.
The Business Model
Beefsteak serves customers meals throughout the day from 10:30AM – 10PM, offering a
differentiated product of quality ingredients with value pricing. Important metrics for any fastcasual restaurant to manage include daily guests, revenue per square foot, average order
price, and gross margin. Qualitatively, José’s reimagining of vegetables may convert a
surprising number of people to become veggie lovers, although significant segments of the
market may be wary to try it, tempted by substitutes and competitive offerings, e.g., Chinese
food (Panda Express in mall food courts) or Pizza (Domino’s) in particular on college
campuses. The Beefsteak Brand Manager, Stephanie Salvador, thoughtfully considers
customer selection strategy, and the feasibility of convincing otherwise non-veggie fans to give
Beefsteak a try. Below sections on the restaurant industry and competitive analysis will help
inform understanding of Beefsteak’s position.
Lavanya Ramanathan. The Washington Post. With Beefsteak, Jose Andres embraces fast food – and the humble vegetable. October 14,
2014. https://www.washingtonpost.com/news/going-out-guide/wp/2014/10/14/with-beefsteak-jose-andres-embraces-fast-food-and-the-humblevegetable/?tid=a_inl
14
http://www.bizjournals.com/washington/blog/top-shelf/2015/12/jos-andr-s-beefsteak-gets-a-big-cash-infusion.html
13
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The Restaurant Industry: Fast-Casual Segment
A hybrid of fast food and casual
dining restaurants, fast-casual
restaurants offer minimal table
service, with generally limited
menus and moderate prices.
There are many public
companies listed on the US
stock market in this segment,
including Chipotle Mexican Grill,
Panera Bread, Shake Shack,
Noodles & Co, and Potbelly.
Many rapidly growing fastcasual restaurants are held by
privately, including Cava Grill
and Sweetgreen.
Fast-casual fits into the broader
categorization in the restaurant
Exhibit 7: The Fast-Food Market
industry of limited service,
Source: https://marketrealist.imgix.net/uploads/2014/11/1-Market-Cap-2014-1121.jpg?w=660&fit=max&auto=format
contributing 55% of the market
15
share in the US, including fast-food restaurants such as McDonalds, Yum! Brands, and
Burger King; cafe’s such as Starbucks; Pizza chains Domino’s and Papa Johns; and fastcasual names like Chipotle and Panera, to name a few market value leaders from each
segment.16
“Fast-Good”
Although he distinguishes the Beefsteak foray into the market as “Fast-Good,” Andrés has
finally joined the trend of famous fine-dining restaurateurs across the United States who have
launched fast-casual restaurants, e.g., Danny Meyer’s Shake Shack, Bobby Flay’s Bobby’s
Burger Palace. While the market seems saturated with burrito’s, pizza, burgers, sandwiches,
salads, and wraps, restaurateurs are eagerly attempting to model the success of Chipotle or
Five Guys in nailing a concept that can scale mainstream. One thing Andrés and TFG have in
their favor in this crowded, highly competitive space is the focus on elevating the lowly
vegetable into a crave-worthy entrée in and of itself – this is novel terrain.
Enter Beefsteak: Vegetables, unleashed. José is not the only chef to envision vegetables as
the new bacon, although there is nothing quite like Beefsteak’s mechanized process for freshly
steaming each hot bowl, or the flagship Beefsteak Burger where a succulent, jumbo-thick
tomato slice sits between sprouts, delectable mayo, and a masterpiece bun tastier than
anything a beef patty could ever dream of. While fast-casual salad chains like Sweetgreen and
CHOPT are delivering on traditional salads, Beefsteak elevates veggies to the next dimension
in the way Chipotle changed the way America viewed the humble burrito.
15
16
http://marketrealist.com/2014/12/limited-service-restaurant/
Ib.
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Industry Peers
The restaurant industry is characterized as competitive and fragmented (nearly 1 million
restaurants in the U.S.). Although consumers have to eat, a plethora of substitutes exist to a
fast-casual offering. Discovering best practices, trends, and other case study lessons on what
works from industry leaders like Chipotle can inform strategy. Similarly, it is important to
analyze a peer group of comparable firms to benchmark against. Beefsteak’s peer group of
young, growth stage fast-casual restaurants may include Cava Grill, Sweetgreen, and Shake
Shack. However, note a key difference for these three peers is that they lack a celebrity Chef.
Chipotle17
Pioneering fast-casual through Mexican burritos and a simple assembly line, Chipotle (CMG) is
a force to be reckoned with. In 2015, sales were $4.5 billion and earnings were 476 million.
Important management insight and industry information can be found in Chipotle’s annual
report. As of Dec. 31, 2015, CMG operated 1,971 restaurants in the U.S., with 59,330
employees. It also operated 13 Shophouse Southeast Asian and 3 fast casual pizza concept
restaurants. Founded by Steve Ells in Colorado in 1993, the company’s growth trajectory must
have shocked even its one-time partner, McDonalds. In August 2016, it has been a year since
CMG suffered an E. coli outbreak resulting in many patrons becoming ill and sales declining;
the recovery efforts are still struggling and the stock remains down 50%. The market
capitalization of CMG stands at $11.3 billion. 18
Cava Grill
The D.C.-based Cava Group raised $16 million in 2015 to expand its fast-casual spinoff, Cava
Grill, launching next in L.A. In addition to more eateries featuring Mediterranean wraps, the
funding will go towards expanding the Cava line of dips and spreads like fresh hummus,
tzatziki, and harissa in Whole Foods and other markets. Currently the offerings are sold in 250
grocery stores, and just entered the Midwestern market.19
Sweetgreen
The group of young Georgetown grads who started Sweetgreen seem to have nailed the
formula for eco-chic salad and grain bowls, sourcing local ingredients and promoting healthier,
more sustainable choices. They’ve avoided the trap of too-grand ambitions and kept a narrow
focus: quality salad bowls and low-calorie frozen yogurt that is not artificial. Their offbeat
salads seem to resonate more strongly with consumers than competitors such as CHOPT or
Just Salad. Sweetgreen raised $18.5 million last year, attracting big-name supporters
like Danny Meyer (Union Square Hospitality Group, Shake Shack) and Daniel Boulud. They
also offer warm bowls, which resemble the steamed bowls from Beefsteak more so than
anything else on the market in this segment.
17
SEC Filings – Form 10-Q: Chipotle Mexican Grill Inc, 7/22/2016
Amanda Schiavo. Chiptle (CMG) Still Struggling After E. Coli Outbreak, Bloomberg TV Reports. August 19, 2016.
https://www.thestreet.com/story/13680576/2/chipotle-cmg-still-struggling-after-e-coli-outbreak-bloomberg-tv-reports.html
19
Anna Spiegel. Cava Grill Receives $16 Million in Funding, Expands to Los Angeles. April 1, 2015.

Cava Grill Receives $16 Million in Funding, Expands to Los Angeles 

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Shake Shack2021
The SEC Filing Form 10-k for Shake Shack Inc. provides the following business overview:
“Shake Shack is a modern day “roadside” burger stand serving a classic American menu of
premium burgers, hot dogs, crispy chicken, frozen custard, crinkle cut fries, shakes, beer, wine
and more. Originally, founded by Danny Meyer’s Union Square Hospitality Group (“USHG”),
which owns and operates some of New York City’s most acclaimed and popular restaurants—
Union Square Cafe, Gramercy Tavern, Blue Smoke, The Modern at the Museum of Modern
Art, Maialino, North End Grill, Untitled and Marta—Shake Shack originated as a hot dog cart in
2001 to support the rejuvenation of New York City’s Madison Square Park through its
Conservancy’s first art installation, “I ♥ Taxi.” The hot dog cart was an instant success, with
lines forming daily throughout the summer months for the next three years. In response, the
city’s Department of Parks and Recreation awarded Shake Shack a contract to create a kiosk
to help fund the park’s future. In 2004, Shake Shack officially opened and immediately became
a community gathering place for New Yorkers and visitors from all over the world and has
since become a beloved New York City institution, garnering significant media attention, critical
acclaim and a passionately-devoted following. Since its inception, Shake Shack has grown
rapidly— with 84 Shacks, as of December 30, 2015, in 10 countries and 45 cities—and we
continue to expand outside our home market bringing our classic menu to new customers
around the world. Shake Shack’s fine dining heritage and commitment to community building,
hospitality and the sourcing of premium ingredients have helped us pioneer what we believe is
a new “fine casual” restaurant category. Fine casual couples the ease, value and convenience
of fast casual concepts with the high standards of excellence grounded in fine dining:
thoughtful ingredient sourcing and preparation, hospitality and quality. As a pioneer in this new
category, we strive to maintain the culinary traditions of the classic American burger stand,
while providing our guests with a menu of inspired food and drinks, made with carefully
sourced and quality ingredients.”22
Danny Meyer’s Shake Shack is a fascinating case study of how to succeed with a “better
burger.” The annual report contains a lot of valuable insights. Their strategic response to
competition has parallels to Beefsteak:
“We specifically target guests that seek an engaging and differentiated guest experience that
includes great food, unique and thoughtful integration with local communities and high
standards of excellence and hospitality. We believe that we are well positioned to continue to
grow our market position, as we believe consumers will continue to trade up to higher quality
offerings given the increasing consumer focus on responsible sourcing, ingredients and
preparation. Additionally, we believe that consumers will continue to move away from the
added time commitment and cost of traditional casual dining. We believe that many consumers
want to associate with brands whose ethos matches that of their own, and that Shake Shack,
with our mission to Stand For Something Good and our culture of Enlightened Hospitality, is a
distinct and differentiated global lifestyle brand.”23
20
investor.shakeshack.com
Shake Shack Inc. Form 10-k. 3/30/2016.
22
Shake Shack Inc. Form 10-k. 3/30/2016. Pg. 3.
23
Shake Shack Inc. Form 10-k. 3/30/2016. Pg. 11.
21
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The Shake Shack annual report highlights growth strategies: capitalizing on outsized brand
awareness, growing locations and same store sales, while opportunistically increasing licensed
Shacks. A key theme is building a beloved lifestyle brand with passionate fans, where social
media outlets have become vital to spread buzz. The annual report takes inventory of social
media assets as follows: “166,000 Facebook fans, 231,000 Instagram followers, and 50,000
Twitter followers. We communicate with our fans in creative and organic ways that both
strengthen our connection with them and increase brand awareness. In June 2015, we ranked
#9 on Restaurant Social Media Index’s top 250 restaurant brands, which is measured on
influence, sentiment and engagement.”24
24
Shake Shack Inc. Form 10-k. 3/30/2016. Pg. 9.
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