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Shake Shack experiences a boost in customers after returning Federal Government loan

By Jacqueline Crochet

Long Beach Shake Shack has experienced a boom in business after the company returned a $10 million dollar loan from the federal government.

Shake Shack, along with some other companies, originally experienced backlash from the public when they sought out money meant for small businesses through the Paycheck Protection Program (PPP).

This program was created to help small businesses retain their employees and prevent furthering the job loss that many are currently experiencing from the shutdowns. 

Retaining employees is a lot more difficult for small businesses than larger ones because they have less money to do so.

The PPP was originally meant for businesses with 500 employees or less, yet larger hotels and businesses were able to access the money. 

The requirements were confusing and allowed companies to apply for the money if they had less than 500 employees per location of the business.

This month Shake Shack was one of many large businesses that returned money to the federal government, after obtaining funds meant to help small businesses impacted by the coronavirus. 

Businesses such as Potbelly Corporation, Ruth’s Hospitality Group, and the NBA Los Angeles Lakers team were some other examples of who received money from the PPP.

Shake Shack returned $10 million in total. The CEO said their reasoning was they believed other businesses needed it more.

A small table blocked off the doorway to prohibit customers from going inside the restaurant. Employees wore gloves and masks while working. Photo by Jacqueline Crochet.

Long Beach’s first Shake Shack had only opened in November of last year at the new 2nd and PCH shopping center

It was fully open for a little over three months before COVID-19 safety restrictions impacted restaurants, no longer allowing dine-in eating.

After this story was released, the Long Beach Shake Shack location experienced an increase in popularity and sales. 

Last week customers were seen waiting as long as 25 minutes to get their food. A line of people were seen on the sidewalk as well as a line of cars for their curbside pick up orders.

The Long Beach Shake Shack has implemented numerous safety protocols to protect their employees and customers. Dine-in is not available, but customers can order their food online and pick it up at the store.

Employees were seen wearing face masks and gloves while working. They also have a small table in the doorway to prohibit customers from entering the restaurant

Shake Shack is also offering curbside pickup, where customers can order online and have their food delivered to their cars just outside of the restaurant.

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