Shake Shack Shares in its Success!

What This is About: This is another great example of how attention to culture and leadership leads to outstanding results. Shake Shack started making burgers in 2004, and successfully went public 10 years later, with employees getting a good chunk of the stock. Host Poppy Harlow conducted a CNN podcast with Shake Shack founder Danny Meyer, and CEO Randy Garutti. Renowned New York restaurateur, Meyer, founded Shake Shack in NYC’s Madison Park by accident, and with Garutti, helped create an extraordinary company. How does a burger joint become a cultural and financial phenom? Hundreds of people line up everyday at all of their locations. A huge reason for their success is because they are focused on creating an inclusive culture, leveraging compensation, equality, four-day work weeks, and a supportive community as a way to both attract and retain top talent (while giving customers a memorable experience). In their business, the philosophy is people first, with customers a close second. Listen to the complete podcast for more insight.

What I’ve Learned From It: The best part of this story is that Shake Shack has exported its organization culture and successful business model to other countries. 60 percent of their profit comes from outside of the U.S., including places like Dubai. People often begin their careers on the front line at Shake Shack, and then get promoted. The culture supports building a successful life and career through contributing to the company and participating in the results. They also put enormous attention on the concept of belonging. They tell a story of how of how incumbent “shakers” gather around a new employee, warmly chanting “we are one.” The top leadership is constantly working on how to better evolve their culture based on the principles of inclusion, contribution, and all people sharing in the organization’s financial success.

What I’m Going to Do About It: I am already starting to think and learn more about the concept of belonging as a difference maker. Shake Shack’s Meyer and Garutti have inspired me to accelerate my work in this regard. I genuinely believe that this decade will become one where commitment to creating conditions of belonging will accelerate organization performance. Stay tuned for more of my insights and actions on this theme. Hopefully we can join together in creating more workplaces where people feel like they both can fully belong and contribute.

Think Big, Start Small, Act Now,

- Lorne

One Millennial View: It’s reported that one in eight Americans, at some point, have been employed by McDonalds. You don’t hear the same type of reminiscing or regard for that experience, do you? While Shake Shack makes a burger that is arguably among the best that fast food has to offer, it seems like their culture is as hot as their griddles. We’ve discussed other notable chains in the past, like Chick-Fil-A, and Whataburger. The next time you’re in a drive-thru you might notice how great company culture is as fragrant as the frier.

- Garrett

Edited and published by Garrett Rubis

Shake Shack Shares in its Success!

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