Shake Shack is continuing its growth push with a move into casinos.
The New York-based fast-casual chain on Wednesday announced a licensing partnership with PENN Entertainment Inc. that will bring the brand to 10 casinos across the country.
The first locations are expected to open at Hollywood Casino Toledo, in Ohio, and River City Casino Hotel in St. Louis, Missouri. Both are scheduled to open next year, pending approvals.
Shake Shack has three company-owned units in casinos, but these will be the first licensed casino locations for the brand.
Wyomissing, Pennsylvania-based PENN Entertainment is known for its portfolio of casinos, but also online sports betting and iCasino offerings, and the company has a partnership with ESPN with theScore, a digital sports media brand in Canada.
It’s the latest example of how CEO Rob Lynch is expanding Shake Shack’s reach in an attempt to diversify the portfolio and “meet guests where they are.”
Earlier this year, Lynch announced a plan to more than quadruple its domestic unit count to hit a target of about 1,500 company owned units. That will mean moving from the brand’s traditional “Main on Main” locations into suburban America with smaller format and drive-thru units, he said.
Shake Shack ended the first quarter with 589 restaurants, of which 256 are licensed.
The company is also looking to grow its licensing business, with 35 to 40 licensed locations expected to open this year, along with the 45 to 50 company units projected, which would be the largest class on record.
International growth, which is all licensed, is part of that plan. Last week, Shake Shack announced a deal to bring the brand to Central America for the first time, with 12 licensed units planned in Panama.
Michael Kark, Shake Shack’s president of global licensing, said in a statement that the deal with PENN is a meaningful step into the entertainment space.
“We continue to explore flexible formats that allow us to expand the Shake Shack brand into new regions of the U.S.,” Kark said. “Together with PENN, we’re creating new opportunities to share our special blend of top-notch ingredients and warm hospitality with even more guests.”
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