Chinese Media: "Change in Consumer Attitudes"
It has been reported that the popularity of American-made handmade burgers is waning in China. Even famous handmade burger franchises are unable to withstand management difficulties and are closing down one after another.
On the 27th (local time), the online edition of Chinese media 'Phoenix Weekly' reported that famous American handmade burger franchises such as Shake Shack are struggling in China. Shake Shack, a symbol of premium burgers that started in New York, differentiated itself from other burger franchises with high-quality patties, fresh vegetables, and a cooking method that prepares orders immediately after they are placed. It enjoyed explosive popularity when it first launched in China.
A Shake Shack store, an American handmade burger franchise that received high attention in China in the past. Captured from Phoenix Weekly
However, recently, Shake Shack's popularity has declined. Last year, Shake Shack opened three locations in China but closed three others, resulting in a 0% growth rate in new stores. This is the exact opposite of the situation in 2020 when the first Shake Shack location in China was packed with crowds. At the Shake Shack China flagship store in 'Xintiandi,' a bustling area of Shanghai, there was once a line that took seven hours to get through, attracting significant attention. Some wealthy Chinese even imported burgers in a 'vacuum-packed' state.
In China, Shake Shack's classic hamburger costs 68 yuan (about 13,000 KRW), and its signature milkshake is priced at 41 yuan (about 8,000 KRW). Even in South Korea, where the average income per capita is much higher than in China, these prices are considered high, so the perceived cost for the average Chinese consumer is likely even greater.
Shake Shack is not the only handmade burger brand performing poorly in China. Another American franchise, Five Guys, has not opened any new stores since 2023, and Habit Burger reportedly has only one store left. Carl's Jr. has completely withdrawn its directly operated stores from China.
The media pointed out that "the decline of premium handmade burgers is not simply a change in dining trends but a shift in consumer attitudes." If the experience does not match the money spent by consumers, no matter how premium the brand is, it will be ignored. Phoenix Weekly stated, "The successive withdrawal of premium handmade burger stores signifies the end of an era," adding, "Now Chinese consumers have started to spend money after thorough consideration and are no longer attracted by upscale strategies that seem to elevate social status."
Local netizens who read the article also expressed skeptical reactions such as "The taste might be good, but it's too expensive," "Do we really need to buy a burger at this price?" and "The term handmade burger doesn't mean much anymore."
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