Its milkshakes bring Gen Y to the yard.
Shake Shack might have received a lukewarm, neutral rating in the wake of its January IPO, but according to a new Goldman Sachs report, the burger chain has managed to amass a dedicated army of millennial fans. And a big reason for that, according to the report by analyst Karen Holthouse, is that its social media game is on fleek.
Shake Shack “does essentially no traditional marketing, but has a strong presence on social media, which speaks to its relevance among Millennials,” the report says. It cites both Vine and Instagram as examples, where its presence is massive relative to even social media heavyweights like Taco Bell.
In terms of pure numbers, Shake Shack doesn’t have the largest following on most of these social platforms. Its advertising budget is also relatively tiny: In 2013, Shake Shack spent only $800,000 in advertising and promotions. But it has the biggest audience for its size – it has only 40 stores nationally compared to the thousands that both McDonald’s and Taco Bell have, for instance.