Shack Shutterings
2 underperforming Houston Shake Shack locations are closing soon
Two of Houston’s oldest Shake Shack locations will soon be closing. The restaurant’s stores at the Galleria and in Montrose will shutter by the end of September.
In a recent filing with the Securities and Exchange Commission, Shake Shack revealed it would close nine underperforming stores in California, Ohio, and Texas. One of the reasons given is that the locations are thought to be “cannibalizing sales” from other locations. The remaining 527 company-owned restaurants are unaffected by the closures, and the closures do not affect the company’s plans to open new stores in the future.
“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,” Shake Shack CEO Rob Lynch said in a statement. “We’re committed to sustainable growth and providing the best possible experience for our guests. After careful consideration, we’ve made the tough decision to close a small group of Shacks due to various factors, including underperformance. We remain focused on supporting our team members through this transition and look forward to continuing our growth, opening many more locations across the country."
Management at the locations that are closing will be offered positions at other restaurants. Hourly employees and managers who choose not to relocate will receive 60 days pay, according to Nation’s Restaurant News, which was the first to report the news.
The Galleria location — Houston’s first Shake Shack — opened in 2016 to considerable fanfare, including special menu items created in collaboration with Fluff Bake Bar and Morningstar (a now shuttered coffee shop in the Heights). Montrose followed in 2018, claiming a site that had been a Burger King.
Shake Shack operates six other restaurants across the Houston area — including downtown, Rice Village, and The Woodlands — as well as a stand at Minute Maid Park. Last year, it opened three new drive-thru locations in Webster, Katy, and Sugar Land.
Founded by legendary New York restaurateur Danny Meyer, Shake Shack is known for its signature Shack Burger, which is a cheeseburger that's cooked on a griddle, topped with both the signature ShackSauce and vegetables, and served on a potato bun. A vegetarian mushroom burger and fried chicken sandwich are also available. Fries, shakes, and frozen custards round out the experience.