Book: Franchising and licensing: Two powerful ways to grow your business in any
ID: 459853 • Letter: B
Question
Book: Franchising and licensing: Two powerful ways to grow your business in any economy (4th ed.)
Chapter 13 – Capital Formation Strategies
In January 2015 Shake Shack became a publicly traded company. Until then, Shake Shack had been a small regional burger chain in the northeastern U.S. – primarily New York City.
Read the article at the link below and reflect concerning growth issues and how to approach growth in a systematic way.
Do you think Shake Shack made a wise decision based on the information it had when the company decided to move into California (now it is known it was a good decision).
With one success, do you think the company will be able to compete with In-N-Out and the other burger chains already established and the new ones that have opened up recently like Smash Burger?
With the stock down considerably from it post IPO pricing, how do you view the overall success potential and long term potential for investing in this company?
http://finance.yahoo.com/news/shake-shack-first-quarter-refutes-bear-argument-183034691.html
Explanation / Answer
Yes, company made a wise decision to move to California because investors were willing to invest and the chain is already a hit in Northeast.
Yes the company can compete with other In-N-Out and other burger joints as the company has introduced new items in its menu to serve and to give reason to customers to keep visiting Shacks.