Viral Video Ignites Shake Shack Pricing Debate

A customer’s claim that non-tippers are drawing the short straw at Shake Shack has recently gone viral.

B.D. Powell wondered whether his wife’s theory about the chain adding a surcharge to every individual item ordered by a non-tipping customer would hold any water. The couple decided to put it to the test at a self-pay kiosk at Salt Lake City International Airport.

“My wife says that if you don’t tip at Shake Shack, they make it more expensive per item,” Powell said in an Aug. 8 TikTok post. “So, we’re about to find out.”

The couple ordered three “Classic Shakes,” one of which came with a 49-cent surcharge for adding whipped cream. The subtotal, before taxes and other fees, stood at $18.46.

When the couple opted for the no-tip option at checkout, the kiosk displayed a message saying a “pricing update” had been applied to one or more of the ordered items. According to Powell’s video, the “pricing update” appeared in the form of a 50-cent surcharge.

“Everything just went up 50 cents. Every item went up by 50 cents. Just making sure everybody knows. Do not go there,” Powell said.

USA TODAY could not independently verify Shake Shack’s initial response to Powell, but the New York Post reported that the chain thanked the couple for bringing the issue to its attention.

“This is not a Shake Shack policy, and we’re currently looking into it with our licensee, HMSHost, that operates the Salt Lake City airport location and kiosk system,” the outlet reported.

Shake Shack Responds to Claims About Price Increases

Shake Shack told USA TODAY in a statement that it does not increase prices or add surcharge penalties to orders placed by customers who choose not to tip.

“It is not Shake Shack policy, nor that of our licensees, to increase the price of menu items when no tip is added,” the chain said. “The pricing issue shared online occurred at an airport Shack that is owned and operated by our licensee HMSHost.”

According to Shake Shack, HMSHost investigated the matter and determined it was an error caused by kiosk technology unrelated to tipping.

The chain continued: “They have informed us that the issue has been resolved. We’ll continue working with all our licensed partners to make sure every guest is taken care of at Shake Shack.”

Reporting by Amaris Encinas, USA TODAY. USA TODAY Network via Reuters Connect.