Shake Shack Executive Summary

Future Competitive Method List and describe products and services

Fast casual Breakfast Product Description
Shake Shack will serve breakfast for the customers who wants to eat healthy and quickly in the morning. Let the customers have more alternative in their breakfast, give customers opportunity to enjoy a delicious healthy breakfast. Shake Shack wants to make an up level brand, and also in their breakfast products. Those ingredient of breakfast go through a strict control, We never serve a frozen meat or eggs in a sandwich. Every food ingredient we purchase keeps the quality as well as the burger and other products. Normally the breakfast is grab-and-go, and Shake Shack will provide those services in the morning as well.
The revolution of restaurant breakfast already began for many year; lots of chain fast food business provides special breakfast meal to their customers. According to a research by the NPD Group, the US guest flow during the breakfast period increased by 3% from 2013. At the same time, during lunch and dinner period, customers flow decrease by 1%. • Economic environment: In the latest quarter, the data show Shake Shack operation profit margin have a significant decrease, the main pressure first came from the labor cost. Shake Shack has to raise their salary f to make sure they have enough employees to keep the operation. Second, Shake Shack always requires high quality the food ingredient such as beef, but the cost constantly rising every year. The net income of Shake Shack is fall down to the lowest point since 2013. It is necessary to find some other food ingredient which do not cost much but have more profit.
• Market Performance: When McDonald decided to serve breakfast, the profit increase 5% than last year, stop the negative increase, and turn to a positive increase. Starbucks breakfast sandwich sales increased by 30% than the previous year, Taco Bell began to provide breakfast food in some of its stores in 2012, expanding its products in 2014, and now 7% of its sales come from their
As the breakfast sales increase, the food cost and labor cost increaser as well, but in general, breakfast food ingredient price is cheaper than lunch and dinner.Beside that, the breakfast service already successful increase 9% of their regular customers.

First, to estimate the change by the CM, we need to consider some key items of cost and revenue which may related to the CM. According to the offical data.This chart shows the the baisc sales revenue and expense situation. The food cost include the products which directly effect the food. For example the food ingredient cost, transportation fees, package of the food. The food cost will be affected by sales volumes, menu mix, and nature environments. Labor cost inculde employee salarys, bonuses, payroll tax, compensations and medical insurance the most unpredictable part is the traning fees because food industry always have a high turn over rate. The change of labor cost mostly because of the policy and regualtion changes and labor demand.Utlity and operating cost inculde daily utlity cost such as power