Shake Shack Poised for Biggest Growth Year Ever

By QSR Magazine, November 2, 2017

Boosted by both revenue and overall sales increases of nearly 27 percent during its latest quarter, Shake Shack is planning to open more locations in new markets throughout 2018.

During a conference call Wednesday, CEO Randy Garutti said the company plans to open between 32 and 35 new company operated locations by the end of 2018, with about 20 percent of those units expected to open in new markets. 2018 will be the biggest year of unit openings for Shake Shack to date, and will result in year-over-year unit growth between 36 and 40 percent. Shake Shack has revised its forecast of opening 24 restaurants by the end of 2017 to potentially opening 26 units.

New units will include a Shake Shack at LAX Airport and at Hartsfield-Jackson Atlanta International Airport. During the third quarter, Shake Shack entered the San Antonio market and added its second Michigan location.

While sales and revenue increased during the third quarter thanks to year-over-year unit growth of 36 percent, Shake Shack’s same-store sales fell by 1.6 percent compared to a 2.9 percent increase last year. Traffic decreased 3.8 percent.

“We’re pleased with both our top and bottom line growth in the third quarter despite the negative impact of Shack closures caused by two major hurricanes,” Garutti said, adding that the company closed nine locations for a total loss of 33 operating days during the storms.

Earlier this month, Shake Shack launched its kiosk-only, cashless store and tested a split kitchen for greater throughput. Garutti says that the company will continue to invest in these types of innovations and expects an increasing proportion of ordering to be conducted through the Shack app and delivery channels.

“Our average check via the app remains higher than in Shack,” he said. “We’re seeing encouraging return rates from our app users and while [it’s] still in the early days for us, we believe the Shack app is a really important tool for us to deepen our connection with our guests with a strategic push towards more personalized marketing initiatives to drive greater frequency and spending.”

Shake Shack launched its Hot Chick’n LTO during the quarter, and will continue to test chicken as an expanded menu category.

Garutti says that the brand has been pleased with delivery pilots and there is high demand for Shake Shack delivery.

“In terms of where we ultimately go with delivery, anything we choose to build will be with long-term sustainable economics in order to create a strong healthy business,” Garutti said. “For now, you’ll continue to see us approach this area of our business thoughtfully and strategically.”

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Center Centers Business Management (CBM) leasing agent, Brett Mero, recently completed a lease transaction representing the landlord and tenant, Wanderlust Creamery, a local ice cream parlor, on a 1,000 SQFT retail space. The unit is situated in a newer, corner shopping center at the intersection of Glendale Boulevard and Glenhurst Avenue in the steadily gentrifying Northeast Los Angeles enclave of Atwater Village. The well maintained, artfully designed shopping center features stunning curb appeal and a variety of successful co-tenants, including Subway, Dunkin Donuts, the UPS Store and more.


CBM’s Valley Division Director, Dave O’Connell, and long-time Encino office leasing agent, David Guardado, both celebrated birthdays last week.

CBM’s Encino office team joined together to honor these two fine gents at a big birthday bash lunch.

We can’t tell you how old Dave + David are, but we can tell you they’re old enough to have a good time ;–) Which, if the photo above is any indication, they clearly did!

Happy Birthday, boys!

 



The latest addition to the CBM team, Diana Romero, knows how to strut her stuff…

Just like any good peacock!

And in the pic above, Diana’s representing CBM with LOADS of Halloween spirit (at CBM’s West LA office front desk).

Check out that peacock custom… AMAZING, huh?


Retail leasing specialist, and all around amazing guy, David Levcovitch…

Just celebrated his 70th birthday!

In the birthday bash pictured above, David is accompanied by the CBM’s entire Encino office, two veteran West LA office property managers, and CBM President, Rick Rivera.

David joined CBM’s Encino office in mid-‘90s, and has been a retail leasing juggernaut, not to mention one of CBM’s most productive leasing agents, ever since.

The only question for David now, reflecting back upon his 20+ year career with CBM: We’ll the company be celebrating his 90th birthday in another 20 years?

I’d put my money on it!



Enjoy a happy + safe holiday with your family and friends!


By BisNow,Friday, May 6, 2016

How One Retail Property Manager Effectively Addressed The Homelessness Issue

Homelessness is rising in many parts of the country, which is putting a strain on retail properties. Coreland Cos senior real estate manager Tracy Thomas tells us how property managers are balancing the needs and safety of customers and tenants with the human dignity homeless people deserve.

Tracy Thomas Tracy (left, during last year’s Bike the Coast road race from Oceanside to Encinitas, CA) manages 2M SF of shopping centers throughout Los Angeles County, which saw a 20% increase in homelessness in 2015.

“It doesn’t matter the size, type or location of the center,” she says. “The reason homelessness is prevalent among shopping centers is because they provide the environment homeless people are looking for: food, money and a place to sleep.” Shopping centers are also usually privately owned, which makes them easier to hang out in than at a frequently monitored city beach or park.

One of the biggest problems is the availability of restrooms—many retail centers now lock them and you need either a key or door code to enter, Tracy says. As a result, many homeless people will relieve themselves in the back areas, by tenant doors. Also, some homeless people park themselves in front of grocery stores to panhandle and get visibly angry when shoppers don’t offer them money. How One Retail Property Manager Effectively Addressed The Homelessness Issue

There are two sides to the issue, Tracy notes—a property manager has the responsibility to protect the customers, retailers and property, but also needs to recognize the human element of the situation.

“We want to make sure that the homeless people are handled with dignity, but how do you balance that human interest while taking care of your facility?” she asks. Calling police or security doesn’t help, as the homeless just come back after officers have left. Police departments are often stretched as well, so non-emergency calls from retail centers are last on their lists.

However, Coreland has found success in connecting with outreach programs, such as PATH, which offers resources and rehabilitation programs for the homeless. Crenshaw Imperial Shopping Center in Inglewood, CA

Tracy once managed a shopping center in Westchester, CA, which had a large homeless presence due to its proximity to Venice Beach and the heavily policed airport. PATH would meet with the homeless to gauge where they were in homelessness and see if it would be able to bring them into a rehabilitation program that helps with food, shelter and job placement. The nonprofit was supported with donations from the shopping center owners, and by the time Tracy left the property five years later, there was a considerable drop in the homeless population at the center.

Coreland also made use of a similar outreach program through California’s Inglewood Police Department, the town in which Tracy manages the Crenshaw Imperial Shopping Center, above. One challenge, however, is the retailers, Tracy says—they are more in touch with the human element of the situation and feel bad for the people staying at shopping centers, often giving them food or money. And when food or money is made available, the homeless population grows.

“We have to educate the retailers and help them understand that there are resources available to guide the homeless into more advantageous situations,” she notes. And when these resources are made available to homeless people, they often don’t return to the shopping center. “We can’t battle this ourselves,” she says. “It takes a community to resolve the homelessness issue.”

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