Shake Shack to Close Nine Locations

Shake Shack announced the closure of nine underperforming restaurants in California, Texas, and Ohio, citing factors such as underperformance and changes in trade areas. The California closures include five locations in Los Angeles and one in Oakland, while two locations in Texas and one in Ohio are also affected. The company expects these shutdowns to cost up to $30 million in pre-tax charges. Despite these closures, Shake Shack plans to open 80 new locations in 2024, emphasizing sustainable growth and improved guest experiences. Affected employees will be offered positions at nearby locations or receive up to 60 days of pay if not rehired. The closures are part of a strategic move to optimize the company's portfolio without impacting future expansion plans.