Operations Management Presentation
Operations Management Presentation
Operations Management Presentation
MANAGEMENT
PRESENTATION
INTRODUCTION
• Shake Shack is an American fast casual restaurant chain based in New
York City. It started out as a hot dog cart inside Madison Square Park
in 2001, and its popularity steadily grew. In 2004, it received a permit
to open a permanent kiosk within the park, expanding its menu from
New York–style hot dogs to one with hamburgers, hot dogs, fries and
its namesake milkshakes.
• Since its founding, it has been one of the fastest-growing food chains,
eventually becoming a public company filing for an initial public
offering of stock in late 2014.
DEPARTMENT INTRODUCTION
• Shake Shack is an example of great alignment between a business and
operating model. The company describes itself as a “modern-day
‘roadside’ burger stand” serving a selection of premium hamburgers,
hot dogs, milk shakes, and other traditional American foods typical of
fast food restaurants. Shake Shack has come a long way since its
humble beginnings as a hot dog stand in Madison Square Park, but it
continues to rely on a business model that cares about its employees,
its customers, and its product. Shake Shack captures value by serving
a quick and delicious meal with care, and creates value by turning a
fast food meal into a casual dining experience that transforms Shake
Shack from a burger chain to a “lifestyle brand”
OPERATIONS AND SUPPLY CHAIN
MANAGEMENT
• "Stand For Something Good," has been Shake Shack's vision statement
since it launched as a hotdog cart 15 years ago in NYC, and it's a
principle applied to all areas of its business operations, including the
supply chain. For example, it sources ingredients from like-minded
ranchers, farmers and food purveyors who use premium ingredients —
100% all-natural proteins with no hormones or antibiotics, humanely
raised and source verified — according to the chain's annual report.
• Shake Shack, which also uses only cage-free eggs, elevated its mission
even further this year by setting a goal of eliminating plastic straws and
high-fructose corn syrup by 2019. It's also trying to build more
relationships with local suppliers and ranchers throughout the country.
DISTRIBUTION
• The chain has one broad line distributor to provide virtually all its food
distribution services in the United States. About 84% of the core food and
beverage ingredients and 100% of its paper goods and chemicals —
collectively representing approximately 49% of its purchases — were
processed through that distributor for delivery to each unit. Shake Shack also
uses 19 affiliated distribution centers to supply its domestic company-operated
shacks.
• "Suppliers must meet certain criteria and strict quality control standards in the
production and delivery of our food and other products," the report said. "We
regularly evaluate our broad line distributor to ensure that the products we
purchase conform to our standards and that the prices they offer are
competitive."
Food safety and quality assurance
• Food safety is a top priority, according the annual report, which said the chain has
rigorous quality assurance and food safety protocols in place throughout the supply
chain. It includes keeping a comprehensive supplier and ingredient selection process
and maintaining a limited list of approved suppliers.
• "We thoroughly review the results of suppliers' internal and external quality audits,
insurance coverage and track record on an ongoing basis," the report said. "We have a
food safety site inspection process and periodically perform supplier site visits, as well
as mock food recalls. We have developed and implemented training and operating
standards related to the food preparation, cleanliness and safety in the Shacks.
• It also has a quality assurance team to ensure food safety across all domestic
company-operated shacks as well as employing an external third-party to conduct
additional audits on a quarterly basis.