Listen: Cherry Blossom and Red Bean Shakes: Tiny Shake Shack Expands Abroad
"This episode of business wars daily is brought to you by sent pro online from pitney bowes shipping and mailing from your desk is never been simpler than with sent pro online from pitney leabeau's. Try it free for thirty days and get a free ten pound scale when you visit p._b._a. Dot com slash b w daily the ah from wondering i'm david rounded. This is business whereas daily on this thursday august twenty nine. What would you do if your business growth arrested on the success of a cherry blossom shake or one made from red beans or a plant call the pandan well. That's what shake shack new york. Burger restaurant contends with every every day. The two hundred thirty five store chain founded in two thousand four by restaurateur. Danny meyer has grown with a highly unusual strategy expand internationally nationally from the start most new restaurant chains expand regionally and iron out kinks before daring to go abroad will not meyer who dramatically defied conventional conventional restaurant management wisdom. He began shake shacks international expansion early on opening a restaurant in moscow after launching only three or four in the u._s. That at counter intuitive approach stemmed in part from eyeing the ferocious domestic fast food competition. The market seemed far less crowded abroad. Why take such a radical approach to growth while shake shack official told c._n._n. It was a way to hedge their bets. If things went poorly he said a failure really far away from home. Wooden wouldn't hurt u._s. Business the unlikely strategy worked today. Shake shack has restaurants in fifteen countries including saudi arabia to oman mon- russia and even japan this month that opened one in mexico. It's fourth new country this year alone. Following debuts in shanghai singapore and the philippines chocolate it shakes though don't cut it abroad in south korea. Those famous shakes are red bean beverages. They served cherry blossom shakes in japan and pandan plant shakes in singapore but the rest of the menu no matter where they are <hes> mostly burgers and fries that strategy of maintaining core menu and tweaking taking some items locally isn't unlike that of shake shacks largest international rival mc donald's famously served slightly different versions of sandwiches ages in europe asia and the middle east to and like shake shack offers localized desserts like stroup waffle mc flurries <hes> caramel and cookie laden vanilla. Allah is cream dish in the netherlands. There's enough fascination with fast food. Version served abroad that mcdonald's tested out menu items from australia canada the netherlands and spain back back home in the u._s. This summer for a limited time if tailoring menus for local audiences as challenging well it holds nothing on the obstacles facing the rest of the business take a restaurant to a new country and everything is different suppliers ingredients labor finance regulations and of course consumer behavior sure so shake shack which owns its restaurants outright in the u._s. Licenses them to local operators abroad who already understand their markets. The company's companies counterintuitive expansion strategy seems to work in the first quarter of twenty nineteen shake. Shack revenues grew thirty four percent to one hundred thirty-three million compared to the year before that's far faster growth and mammoth mcdonald's although one can't escape the obvious i mean it's far far easier to grow a two hundred thirty. Five restaurant chain than one with almost forty thousand locations will drink a cherry blossom shake to that from wondering business worst daily. Hey take a second and tell us more out yourself. Would you visit one dot com slash survey irving. We love learning more about you. Thanks a bunch. I'm david brown back on this episode is brought to you by centro online from pitney bowes shipping and mailing from your desk has never been simpler than and with sunpro online from pitney bowes with simple online is just click save and save for as low as four dollars ninety nine cents. That's right four dollars. Ninety nine nine cents a month. Send envelopes flats and packages right from your p._c. And you are back to business in no time. Try it for free for thirty thirty days and get a free ten pound scale but only when you visit p._b. Dot com slash b w daily that's p._b. Dot com slash b w daily."