Shake Shack Gambles on Casino Restaurant Strategy

Shake Shack is rolling the dice on a new growth strategy. The popular burger chain recently announced it's partnering with PENN Entertainment to bring its elevated fast-casual dining to 10 casinos nationwide.

The first locations will debut at Hollywood Casino Toledo in Ohio and River City Casino Hotel in St. Louis, Missouri. Both are set to open next year, pending regulatory approvals. It's a strategic move that expands Shake Shack's footprint into the entertainment sector for the first time through licensing deals.

"Shake Shack is thrilled to be partnering with PENN Entertainment to open ten incredible Shacks and take a meaningful step into the entertainment space," said Michael Kark, President of Global Licensing at Shake Shack. "We're creating new opportunities to share our special blend of top-notch ingredients and warm hospitality with even more guests."

The casino expansion fits perfectly with CEO Rob Lynch's ambitious growth plan. Earlier this year, Lynch announced a bold target to more than quadruple domestic locations to roughly 1,500 company-owned units. That means moving beyond the brand's traditional "Main on Main" spots into suburban America with smaller formats and drive-thru locations.

While Shake Shack already operates three company-owned casino locations, these new PENN Entertainment partnerships mark the brand's first licensed casino ventures. The company ended the first quarter with 589 restaurants, including 256 licensed locations generating $179.6 million in sales—up 10% from the previous year.

This casino bet is just one piece of Shake Shack's expanding licensing puzzle. The chain expects to open 35 to 40 licensed locations this year, alongside 45 to 50 company units. Recent deals include bringing the brand to Central America for the first time with 12 planned Panama locations, plus a partnership with Delta to serve meals on domestic flights.

"We continue to explore flexible formats that allow us to expand the Shake Shack brand into new regions of the U.S.," Kark explained.

by Alex Bailey | June 08, 2025 | SHARE