Shake Shack Closing In Culver City

CULVER CITY, CA — Six Shake Shack locations are closing in California, including one in Culver City, according to the fast food chain.

The restaurants — in Oakland, Bunker Hill in Los Angeles, Culver City, Koreatown, Silver Lake and Westfield Topanga — were identified as underperforming and were not projected to provide “acceptable returns,” Shake Shack said in a U.S. Securities and Exchange Commission filing. The chain currently lists more than 40 locations in the Golden State.

Three additional locations in Texas and Ohio were also set to close, bringing the total to nine.

The company will be opening 80 new restaurants in 2024, according to CEO Rob Lynch.

“Shake Shack is in a period of considerable growth with a plan to open 40 new company-owned Shacks and 40 more licensed Shacks this year,” Lynch said in a prepared statement. “We’re committed to sustainable growth and providing the best possible experience for our guests.

"After careful consideration, we’ve made the tough decision to close a small group of Shacks due to various factors, including underperformance.”

Management at the closing restaurants will be offered a job at a nearby Shake Shack and hourly employees will be eligible for rehire at other locations, according to the filing, which said workers who do not transfer or get rehired will receive up to 60 days pay. Employees were notified of the plan Tuesday and the closures are expected to be completed by Sept. 25.

Shuttering all nine locations is expected to cost Shake Shack up to $30 million in pre-tax charges during the third quarter, the filing said.