Shake Shack will be flipping its final burger in San Francisco's once bustling shopping destination, the San Francisco Centre, this December. In a WARN notice filed with state labor officials last Tuesday, the popular fast-casual chain confirmed the closure of its 845 Market Street location, set for Dec. 18—a significant blow for the dwindling downtown mall. The decision comes in the wake of the sale of the building and a subsequent requirement from the mall's new owners for all tenants to clear out, as mentioned in a San Francisco Chronicle report.
The closing of Shake Shack adds to the list of vanishing eateries from the troubled San Francisco Centre, which at one point boasted more than 20 food vendors. After the shutdown, only Panda Express will remain to serve those still visiting the mall. Shake Shack's departure also signifies the elimination of 26 jobs. However, the company assures that employees have been offered the opportunity to transfer to other Shake Shack locations, ensuring no interruption in their service. A majority of the employees have reportedly accepted the transfer offers, according to the Chronicle. Sadly, with this closure, one of the city's largest malls is now teetering at a mere 9% occupancy.
Prior to the pandemic, the 1.5-million-square-foot shopping complex was seen as a preeminent spot in the nation for retail and dining. But it has suffered a harsh decline in foot traffic over the years, alongside losing anchor tenants like Nordstrom and Bloomingdale's. In a drastic downturn, the mall's valuation plummeted from $1.2 billion in 2016 to a scant $134 million, which was the price lenders paid at a foreclosure auction last month. In tandem with the closure of Shake Shack, retailers such as Ecco and Samsonite are also preparing to shutter their doors after being informed by lawyers of the new owner that their leases are terminated, as further explained by the Chronicle.
Despite the imminent closure, a statement obtained by KRON4 from a Shake Shack spokesperson emphasized the chain's commitment to its staff and community presence: "We will unfortunately close our Shack at San Francisco Centre on Dec. 18 because the property was sold to a new owner who is requiring all tenants to vacate the premises. We remain focused on supporting our people through this transition and have offered opportunities to all 26 team members to transfer to nearby Shake Shack locations. We look forward to welcoming our guests at our other Bay Area Shacks and continuing to be part of the community." Still, the closing marks another lost beat in the heart of San Francisco's retail rhythm, as the mall once thrived with visitors and locals alike, drawn by a diverse array of shops and dining options, now dwelling in the shadow of its former vibrancy.
Shake Shack, which expanded rapidly in California in 2022, will carry on business in the city with two other locations in Cow Hollow and Stonestown Galleria. The East Coast chain has had to assess its performance and close six "underperforming" restaurants in the past, leading up to the recent 138 layoffs, including 32 in Oakland. Despite these challenges, the company appears determined to maintain a foothold in the city, continuing to dish out its popular burgers, crinkle-cut fries, and frozen custard drinks to the Bay Area's fast-food aficionados.
