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Food and Drink

Shake Shack Raises Prices on Chicken, Delivery Could Be Next

Erika Adams

Photo Credit: That free-range chicken doesn't come cheap. Square

Skift Take

Delivery pricing and the high cost of chicken cut into the chain's profits this quarter.

Higher prices are coming for two things Shake Shack's customers love: chicken and delivery. Like its peers in the industry, Shake Shack has been hit from all sides by higher operating costs including higher food prices and steep delivery commission fees. But the core principals on which Shake Shack has built its brand — high-quality food, avoiding a value-driven approach to selling — are the same sticking points that could make it tougher to navigate the industry's rising costs compared to the competition. In the first quarter, every store operating expense at domestic, company-operated stores rose as a percentage of revenue. Food and paper costs were up by 41 percent compared to the same pe

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