Shake Shack plans to close multiple "underperforming" restaurants in several U.S. states, according to a document filed to the U.S. Securities and Exchange Commission on Tuesday (August 27).
The popular chain plans to close nine stores located in California, Ohio and Texas, however, no other stores are expected to be affected and the plan won't impact expansion in the three states, according to the filing. All Shake Shack management affected by the closures will be offered positions at neighboring locations and hourly employees will be eligible for rehire.
Six of the nine Shake Shacks scheduled to close are in California and located in Oakland, Downtown Los Angeles, Culver City, Koreatown in Los Angeles, Silver Lake in Los Angeles and Westfield Topanga in Canoga Park, according to the San Francisco Chronicle. The other three closures are reported to be in Columbus, Ohio, and Houston, Texas.
The fast food chain does, however, still have more than 20 locations in the Los Angeles area, which includes California's first drive-thru location opened earlier this month, as well as nearly 330 locations in the U.S. and more than 400 globally. Shake Shack is the latest national brand to experience closures in the state of California and nationally, following Big Lots and Red Lobster's decisions to reduce their footprint.