Shake Shack IPO When famed fine dining restaurateur Danny Meyer opened a hot dog cart in New York City's Madison Square Park in 2001, the venture drew legions of customers curious to experience Meyer's take on all-American street food. The curious became the committed and Meyer's little experiment acquired a permanent structure in the park - the Shake Shack. The Shack regularly drew long lines, leading Meyer to build a company around the concept. In a few years, Shake Shack expanded to a chain of burger restaurants in the United States and licensed outlets internationally. Meyer sought to differentiate Shake Shack from the long tradition of burger joints and chains that dotted the American landscape. First, Shake Shack was committed to high quality ingredients and efficient operations in each of its eateries. Secondly, the company selected high traffic locations and designed each outlet to fit into its chosen locale. Finally, Meyer wanted Shake Shack employees to create culture of hospitality that welcomed each customer as if Shake Shack was a fine dining establishment, rather than a burger joint. As of 2015, the formula seemed to be working. Shake Shacks developed a devoted fan base in each of their locations. New Shake Shack locations were greeted by enthusiastic fans who cheered the opening of the operations in their neighborhoods. But the fine causdinio market.coace in which Chaka Shackwa ratione bacaminscenacina Times X - E - BIUS $ chains and concepts", that shows that Shake Shack could basically faced an issue to which there might be a restaurant that will be able to attract thei given consumers which is why a threat was opposed towards them when everything started to get high and Shake Sha As of 2015, the formula seemed to be working. Shake Shacks developed a devoted fan base in each of their locations. New Shake Shack locations were greeted by enthusiastic fans who cheered the opening of the operations in their neighborhoods. But the fine casual dining market space in which Shake Shack was operating was becoming increasingly crowded. Competition was fierce among the various chains and concepts. Could Shake Shack hold its own against this legion of rivals? I At least initially, investors seemed to believe that Shake Shack could. The company went public on January 30, 2015 with shares listed on the New York Stock Exchange (NYSE). Opening day investors bid up the $21 per share offering price by 118% to reach $45.90 at closing bell. By the end of May, investors were paying $92.86 per share. But observers wondered if this price represented a realistic valuation of the enterprise and if not, what was Shake Shack truly worth? This Yale School of Management case has been made possible in part by the generous support of The Kenneth H. Colburn 78 Curriculum Development Fund. Times = - = - BIUS X2 $ V : chains and concepts", that shows that Shake Shack could basically faced an issue to which there might be a restaurant that will be able to attract thei given consumers which is why a high and Shake Shack Questions: 1. What were the opportunities and threats facing Shake Shack? What kind(s) of external factors were the company possibly affected by (positively or negatively? Note: You do not have to mention exact words from the article, you can form an educated guess based on the information above (eg, the type of industry, the competition mentioned, etc.) (5 marks) 2. Shake Shack went from one form of business ownership to the other. Talk about both forms: discuss the transition briefly, and state your opinion on which form you think is better for shake shack and explain why, Provide evidence from the case. (5 marks) 3. Based on all what you have learned, suggest two ways by which Shake Shack can retain (keep) its loyal customers and stay in the maturity phase (you do not have to only refer to the customer relationship management lesson - Please be inventive and use any/ all concepts that apply) (5 marks) $ 5 Times 5- E-BIUS X chains and concepts", that shows that Shake Shack could basically faced an issue to which restaurant that will be able to attract thei given consumers which is why a be WOTAS rom the arccre you conforman educated guess based on inte formacion covete upe of industry, the competition mentioned, etc.) (5 marks) 2. Shake Shack went from one form of business ownership to the other. Talk about both forms; discuss the transition briefly, and state your opinion on which form you think is better for shake shack and explain why. Provide evidence from the case. (5 marks) 3. Based on all what you have learned, suggest two ways by which Shake Shack can retain (keep) its loyal customers and stay in the maturity phase (you do not have to only refer to the customer relationship management lesson. Please be inventive and use any all concepts that apply) (5 marks) 4. Based on your knowledge of the market in which Shake Shack exists (food industry), and with evidence from the article, what type of market competition do you think exists? (5 marks) $ % I US Times - E chains and concepts", that shows that Shake Shack could basically faced an issue to which ners which is why a