Shake Shack Closing 9 Stores, Most in California

The company CEO says no other closures are expected, and 80 other new locations will open this year.
Shake Shack Closing 9 Stores, Most in California
Shake Shack's Hot Chick'n sandwich. Courtesy of Shake Shack
Rudy Blalock
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The burger chain Shake Shack will close nine of its U.S. locations due to underperformance, according to an Aug. 27 filing with the Securities and Exchange Commission.

The company said the closures will eliminate those that aren’t doing well due to “changes” in their respective locations.

Those closing in California include outlets in Oakland, Bunker Hill in downtown Los Angeles, downtown Culver City, Koreatown, Silver Lake, and at the Westfield Topanga mall. Other closures include outlets in Polaris, Ohio; Montrose, Texas; and in the Houston Galleria, according to a company spokesperson.

The locations have until Sept. 25 to close, but affected management can transfer to nearby outlets or receive up to 60 days’ pay, according to the recent filing.

The company, which has 501 stores worldwide and 350 in the United States, said it doesn’t expect additional closures in the foreseeable future, according to their filing.

“After careful consideration, we’ve made the tough decision to close a small group of Shacks due to various factors, including underperformance. We remain focused on supporting our team members through this transition and look forward to continuing our growth, opening many more locations across the country,” CEO Rob Lynch said in a statement to The Epoch Times.

Despite the closures the company is expanding, according to Lynch.

“Shake Shack is in a period of considerable growth with a plan to open 40 new company-owned Shacks and 40 more licensed Shacks this year,” he said in the statement.

Red Lobster Closes 23 Locations

Last week, Red Lobster, the popular seafood restaurant chain, announced plans to close 23 additional locations as part of its ongoing bankruptcy proceedings.

The closures include one location in California, in La Mesa, with other locations spread out across 13 other states, including Minnesota, Virginia, New York, Florida, Ohio, and others.

The company, which has been a major player in American casual dining for decades, is currently restructuring under Chapter 11 bankruptcy, a move aimed at stabilizing its finances and ensuring long-term viability, court records show.

Chase Smith contributed to this report.