New York Post

‘Rain’ of terror for Shake Shack sales

- By LISA FICKENSCHE­R

Shake Shack burgers are worth a trip — unless you have to get soaking wet.

An especially rainy May and June in the Northeast has likely put a damper on sales at Shake Shack’s burger joints, which rely heavily on open-air seating, according to a Wall Street analyst.

The New York-based chain, founded by Danny Meyer, will likely see its samestore sales drop 2.5 percent in the current quarter, according to Goldman Sachs — a downbeat view versus the consensus expectatio­n for a 0.4-percent gain.

Goldman analyst Karen Holthouse noted that Shake Shack’s flagship in the middle of Madison Square Park in Manhattan is “entirely outdoors,” with customers frequently forced to queue up and wait outside for their burgers and fries.

Six of Shake Shack’s 11 Big Apple eateries have outdoor seating, Holthouse noted. And at the Shake Shack on the Upper West Side at 366 Columbus Ave., the kitchen is bigger than the entire seating area, frequently forcing patrons onto park benches across the street around the Natural History Museum.

Cheesecake Factory recently warned that its same store sales for the second quarter are down 1 percent and blamed the “weather headwinds” in the East and Midwest, saying it couldn’t seat diners on its patios.

For restaurant­s with outdoor seating, bad weather is “a double whammy,” said Evan Gold, executive vice president of Planalytic­s, which tracks weather trends for retailers.

“Diners shift to delivery services or drive-thrus when it rains, and restaurant­s don’t make up those lost sales,” Gold said. “It’s not like someone will order two lunches the next day when it stops raining.”

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