Oakland residents searching for a burger fix will now have to look beyond Shake Shack's 1954 Telegraph Avenue location, as the New York-based fast-casual chain has decided to shutter its doors in the city. A "tough decision" was how Shake Shack CEO Rob Lynch described the closure as part of a wider retreat that includes several underperforming locations in California, Ohio, and Texas, as noted by KRON4. This move follows a series of local businesses shuttering amidst concerns about crime and economic viability.
According to a filing with the U.S. Securities and Exchange Commission, reviewed by CBS San Francisco, the popular burger joint cited changes in the trade area and sales cannibalization as factors leading to the closure of the Oakland restaurant. Shake Shack is not alone in facing these challenges; earlier this year, Oakland's only In-N-Out on Hegenberger Road also said goodbye, citing ongoing crime as the reason for its departure. Likewise, the downtown area saw other establishments, such as Subway and Denny's, lock up for the last time, pointing to a trend that concerns local business owners and patrons alike.
Despite these closures, not all news in the downtown area is dire; efforts to revive the economic heartbeat of Oakland persist. A collaborative initiative by large downtown employers to bolster security shows the commitment to the area's potential for rebirth. Simultaneously, Shake Shack has reassured its workforce that positions at other locations will be available, a commitment echoed in their SEC filing, which stated that "Management in these Shacks will be offered a position in neighboring Shacks and hourly team members will be eligible for rehire at other Shacks." Furthermore, there's a notable emphasis on expansion, with Shake Shack planning to open 40 new company-owned Shacks and another 40 licensed Shacks this year.
