The Shake Shack downtown Culver City is closed. Shake shake locations in California slated for closure, the fast-food chain announced. The decision comes after the restaurants were identified as underperforming and not projected to provide "acceptable returns," according to a filing with the U.S. Securities and Exchange Commission.
The affected locations include Shake Shacks in Oakland, Bunker Hill in Los Angeles, Koreatown, Silver Lake, and Westfield Topanga and Culver City. Despite these closures, Shake Shack continues to operate more than 40 locations across the state. In addition to the California closures, three more locations in Texas and Ohio are set to close, bringing the total to nine. These closures are expected to be completed by September 25.Shake Shack's CEO, Rob Lynch, said that the company is still in a growth phase, with plans to open 80 new restaurants in 2024. "Shake Shack is in a period of considerable growth with a plan to open 40 new company-owned Shacks and 40 more licensed Shacks this year," Lynch said in a statement. "We're committed to sustainable growth and providing the best possible experience for our guests. "Lynch acknowledged that the decision to close certain locations was difficult but necessary. "After careful consideration, we've made the tough decision to close a small group of Shacks due to various factors, including underperformance. "Employees at the closing locations were notified of the closures. Management will be offered positions at nearby Shake Shack locations, and hourly employees will be eligible for rehire. Those who do not transfer or get rehired will receive up to 60 days of pay. The closure of these nine locations is expected to cost Shake Shack up to $30 million in pre-tax charges during the third quarter, according to the filing.
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