Shake Shack closes "underperforming" location in Oakland's beleaguered downtown area

Burger chain Shake Shack has closed its Oakland restaurant along with several other locations in Southern California, the latest business in the city to shut down.

The New York-based chain announced in a filing with the U.S. Securities and Exchange Commission on Tuesday that it had "identified locations that are underperforming at the Shack level in part due to changes in the trade area and, in some cases, are negatively impacting other Shacks within their proximity by cannibalizing sales."

Nine Shake Shacks are closing in California, Ohio and Texas, which were "not projected to provide acceptable returns in the foreseeable future," the company said. It added that the closures were "not anticipated to impact the Company's plans to open additional Shacks in these states."

Workers at the Oakland Shake Shack and other locations being closed will be offered positions in other Shake Shack restaurants, the company said. The restaurant has been noted as "permanently closed" on Google search results.

The closure of the Shake Shack at 1954 Telegraph Avenue a block from the entrance to the 19th Street BART station comes as other businesses in the city's downtown area and Hegenberger corridor are struggling to stay open or have closed their doors altogether.

In the spring, Oakland's only In-N-Out location on Hegenberger Road closed, citing ongoing crime in the area as the reason. Other nearby businesses on the Hegenberger coridor, including Subway,  Denny's, and the Hilton Oakland Airport Hotel , have also closed their doors due to similar crime and safety concerns .

In the downtown area, while some businesses were not able to survive the pandemic, changes in downtown traffic, and crime concerns, other businesses are hoping to be part of the downtown revival. Earlier this year, several large downtown employers pooled together to boost security downtown, while other entrepreneurs have resolved to invest in Oakland despite the challenges .