Shake Shack is leaning premium again. The chain rolled out a French Onion Soup Burger on September 9 through its app, with a wider launch coming Sept. 12, priced at $10.99.
The burger is built on a quarter-pound beef patty with Gruyere, caramelized onions, crispy onions, and roasted garlic Parmesan aioli, served on a toasted potato bun. It’s paired with two new sides — the company’s first beer-battered onion rings and Parmesan garlic fries.
It’s the second time this year Shake Shack has tested how far customers will go on price. Earlier, a $10 Dubai Chocolate Pistachio Shake sold out in most markets. CEO Rob Lynch pointed to that launch when explaining the new burger, saying it delivers food you’d normally pay $25 for at a local shop. He’s been calling the strategy “the democratization of fine dining.”
The approach comes as fast food chains wage value wars with low-priced bundles. Shake Shack is trying to stay out of that fight by offering limited-time items that cost more but feel different. Lynch said it lets diners “self-select” into paying extra without raising prices across the board.
Financially, the company is in better shape than some of its peers. This year’s second-quarter revenue climbed 12.6% to $356.5 million, surpassing forecasts, though same-store sales rose just 1.8%. Growth in Texas and Florida helped offset softer sales in New York. Beef prices keep climbing, but Lynch said productivity gains are covering some of that pressure.
Shake Shack now has an 18-month calendar of menu ideas in the works. For now, the French Onion Soup Burger is the one to watch — and at almost $11, it’s another test of just how much customers are willing to pay.
Source: Shake Shack, CNBC