Dive Brief:
- Shake Shack is preparing for a major overhaul of its technology systems, dubbed Project Catalyst, meant to better position the brand for its push toward 1,500 total locations, the brand announced Wednesday.
- The program includes the debut of Shake Shack’s first loyalty program, greater use of artificial intelligence tools, and the modernization of the chain’s point-of-sale and kitchen display systems.
- Shake Shack has focused on a combination of new unit development, increased advertising spending, premium LTOs and the deployment of new equipment to sustain its same-store sales growth despite consumer headwinds facing the fast casual sector.
Dive Insight:
As part of Project Catalyst, Shake Shack has enlisted cloud-based commerce platform Qu to modernize its POS and KDS, with the aim of speeding up throughput and improving order accuracy. According to the press release, Qu’s tech is designed to yield “faster, more precise service, particularly during peak demand.”
On the customer-facing front, Shake Shack is developing a loyalty program that will integrate ordering across digital and in-store channels. The program is intended to boost frequency and lifetime spend through personalized communication with consumers. Executives said in a February earnings call that the loyalty program would launch later this year.
This focus on consumer engagement dovetails with the brand’s recent expansion of advertising. Shake Shack’s national ad spending raises brand awareness and promotes LTOs, and a loyalty program will allow the chain to communicate specialized offers to specific consumers and incentivize individual behaviors.
Shake Shack said it was embedding unspecified artificial intelligence tools into its daily workflows. The centerpiece of that effort is “an intelligent operating layer for every Shack, surfacing proactive insights, alerts, and recommendations that help operators run great restaurants.”
This bears a resemblance to Yum Brands’ effort to develop an AI analytics platform through its Byte technology system. Square has also updated its platform with an AI assistant meant to clarify information available to restaurant operators.
The fast casual burger brand will combine its operational data, consumer behavior data and analytics system to create a unified overview of its performance.
Unified analytics will “serve as the backbone for Shake Shack’s expanding AI capabilities, with continued investment to unlock deeper insights, automation, and scale,” according to the press release.
Shake Shack said the capital expenditure necessary to complete these upgrades was already included in its fiscal projections for the year. The brand has invested significantly in tech over the last few years, growing in-store kiosks into its largest single ordering channel as of early 2024.
This comprehensive investment in technology could help the brand as it scales its store system toward the 1,500-unit mark. Shake Shack had 659 locations at the end of 2025, according to a shareholder letter, and it is planning to open 55 to 60 company-operated locations and 40 to 45 licensed ones in 2026, a significant expansion of its system.
