Shake Shack Leans on Loyalty Program and Tech to Drive Growth -- Barrons.com

Dow Jones04-02

By Evie Liu

Shake Shack is rolling out its first-ever loyalty program as part of a broader technology push aimed at driving repeat visits and deeper customer engagement.

The burger chain said Wednesday the new program will be integrated across its app, website, and in-store systems, allowing it to personalize offers and communicate directly with customers based on their behavior. The goal is to move beyond one-size-fits-all promotions and instead use data to target individuals with relevant rewards and incentives.

The company said it expects the program to increase visit frequency, improve retention, and attract new customers over time.

"By integrating loyalty with our broader digital and data platforms, we can better understand our customers and create more targeted, effective marketing," said CFO Katherine Fogertey in a statement.

The program will also connect with Shake Shack's upgraded point-of-sale systems and digital platforms, allowing the company to link ordering, marketing, and operations into a single system.

The loyalty initiative is part of Shake Shack's larger effort called Project Catalyst, which includes investments in artificial intelligence and data systems. The project aims to build a "modern, scalable technology foundation" that allows the company to deliver a better guest experience and drive frequency, said CEO Rob Lynch.

For 2025's fourth quarter, Shake Shack's net revenue rose 22% from a year ago, driven by new store openings and steady growth of same-store sales. Adjusted earnings came at 37 cents a share, up from 26 cents a year earlier. The company cited increased staff productivity, a more efficient supply chain, and lower costs to build new restaurants.

Shake Shack joins a list of restaurant chains leaning into loyalty programs to drive growth as traffic softens and consumers pull back on spending. By nudging small changes in customer behavior, well-designed loyalty programs can scale into meaningful revenue gains.

McDonald's has seen visit frequency more than double among members, with loyalty users now contributing about a quarter of sales. Starbucks is using tiered rewards and exclusive experiences to encourage higher spending, while Chipotle has added gamified campaigns to boost engagement and sign-ups.

Write to Evie Liu at evie.liu@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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April 01, 2026 15:11 ET (19:11 GMT)

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