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Shake Shack closes underperforming restaurant in Oakland


Shake Shack closes underperforming restaurant in Oakland

Burger chain Shake Shack is closing its “underperforming” restaurant in Oakland, becoming the latest business to close in the troubled city along with five other Southern California locations.

The closure follows the departure of In-N-Out from Oakland in the spring, even as Shake Shack cuts jobs across the country. Two Shake Shack stores in Houston and one in Columbus, Ohio, are also closing due to underperformance by Sept. 25.

The New York-based company said the nine restaurants suffered from “changes in trade” and some of them “cannibalized sales at nearby stores,” according to a regulator statement.

However, the company plans to continue to grow and will open around 40 of its own and 40 franchise stores this year. There are no plans to close any more restaurants.

There is also a Shake Shack in Emeryville, a few miles from the now-closed Oakland location, at 1954 Telegraph Ave. in the Uptown Station complex.

There are also Shake Shacks at Emporium Centre San Francisco, the city’s largest shopping mall, as well as at Stonestown Galleria, Cow Hollow, Larkspur, Walnut Creek, Hillsdale Shopping Center in San Mateo, Stanford Shopping Center in Palo Alto and Westfield Valley Fair. Another is planned at Westfield Oakridge in San Jose.

Southern California locations that will close include Downtown Los Angeles, Culver City, Koreatown, Silver Lake and Westfield Topanga in Canoga Park.

Shake Shack expects to spend between $28 million and $30 million in total due to all nine closures, including paying for terminated leases. Hourly employees who worked at the closed restaurants can be rehired at nearby restaurants or receive 60 days’ pay, while managers have been offered jobs at nearby restaurants.

The Oakland location opened in late 2020 on the ground floor of a former Sears building, now called Uptown Station. The building also houses the largest office of fintech company Block.

Reach Roland Li: [email protected]; Twitter: @rolandlisf

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