Shake Shack is preparing to hike prices this year more than it usually does in an effort to fend off inflation and protect its bottom line.
The New York-based burger chain’s chief financial office Katherine Fogertey said on a conference call with analysts last week to discuss the company’s second-quarter earnings report that customers can expect to pay as much as 3% to 3.5% more for their food.
The price hike is planned for the fourth quarter of the year, Fogertey said, and will touch across a combination of various price tiers and digital pricing initiatives.
The planned price hikes are “higher than the approximately 2 percent menu price [increase] we have historically taken at the end of most calendar years, and we’ll be evaluating the need for further price increases that might go into effect in 2022, depending on how the cost landscape evolves through the rest of the year.”
Shake Shack has already raised prices three times in the past year, according to Eat This, Not That. In December, it hiked prices by 2%. In February, the company raised delivery prices through third-party delivery services by 5%, and then another 10% in the spring.