Hot IPO has Shake Shack looking beyond Danny Meyer

Updated: January 30, 2015 5:33 p.m.

Shake Shack's red-hot IPO and first day of trading last Fridaywith shares opening at $47, up 124%are creating high expectations for the company that started out as a humble burger and hot-dog stand in Madison Square Park 14 years ago.

While most of the focus is on revered restaurateur Danny Meyer, it is Shake Shack's CEO, Randy Garutti, who will lead the company's growth, opening 10 new Shake Shacks a year.

"No company can be perfectly prepared for something like this," said Mr. Garutti. "But we've spent the last year getting ready, and we have a strong, balanced group of leadership."

That group includes Jeff Uttz, the burger chain's chief financial officer, who previously led Yard House's expansion from three locations to 40 and its acquisition by Darden Restaurants; and Peggy Rubenzer, vice president of people resources at Shake Shack, who led P.F. Chang's China Bistro's human resources for a decade.

Mr. Garutti, 39, and a Crain's 40 Under 40 in 2006, has risen through the ranks of Mr. Meyer's Union Square Hospitality Group. He has led Shake Shack since its inception.

"We are not coming out to build thousands of restaurants," he said. "Ten a year is an appropriate pace for us."

The first 10 to open in 2015 under the publicly held company already have signed leases, including two in Austin, Texas, one in Boston and the first

Shake Shack in Baltimore as well as one in Lake Success, L.I. Shake Shack's westernmost location opened in Las Vegas in late December.

There are 11 locations in New York City, where Shake Shack will continue to grow. After the first one opened, it took five years for Union Square Hospitality to open its second.

Shake Shack's original purpose was to help raise money for Madison Park. "The biggest surprise is that this IPO even happened," said Mr. Meyer.

Mr. Garutti, who has a 3% stake in the company, said Shake Shack will continue to adhere to Union Square Hospitality's brand of service and corporate culture.

"I'm thrilled that so many of our team members became shareholders," he said, adding that every manager received stock options to participate in the IPO and that hourly workers who'd been with the company for two years also had the opportunity to buy stock last week.

A graduate of Cornell University's School of Hotel Administration, Mr. Garutti expects to lead Shake Shack for many more years, he said.

Source: http://www.crainsnewyork.com/article/20150130/HOSPITALITY_TOURISM/150139977/hot-ipo-has-shake-shack-looking-beyond-danny-meyer