HOUSTON, Texas – It’s a sad day for Shake Shack lovers in Houston!
The New York burger chain is set to close nine restaurants next month, including two Houston area locations, due to underperformance and possible cannibalization of its other 527 locations.
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In a filing to the Securities and Exchange Commission, the restaurant said restaurants in California, Ohio and Texas were underperforming “in part due to changes in the trade area and, in some cases, are negatively impacting other Shacks within their proximity by cannibalizing sales.”
Houston is closing two locations, the Galleria and Montrose area restaurants.
“We can confirm that Houston Galleria and Montrose are the Texas Shacks impacted by the closures. 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,” said Shake Shack CEO, Rob Lynch. “We’re committed to sustainable growth and providing the best possible experience for our guests. 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,” said a Shake Shack spokesperson.
Managers at the restaurants that are closing will be offered jobs at neighboring Shack Shacks and hourly employees or managers who do not accept the transfer offer will receive a 60-day payout, according to the Nation’s Restaurant News.
If you want to continue to get your Shake Shack fix, visit one of the other six locations in the Houston area including downtown, Rice Village, The Woodlands, Webster, Katy, and Sugar Land.