Burger chain Shake Shack tests four-day work week

New York-based burger chain Shake Shack could be adding one more thing to its menu: a four-DAY work Week. Known for its creamy milkshakes, crinkle fries and gourmet burgers, the popular restaurant is testing a four-DAY work Week in some of its Las Vegas stores, said CEO Randy Garutti at an investor conference on March 14.

There are generally two ways of getting to the shorter work Week: consolidate 40 hours into four DAYs and keep salaries the same, or maintain the same number of hours per DAY and adjust salaries accordingly.

Shake Shack's test run involves the first method, where 40 hours are spread over four DAYs, and pay remains the same, according to , citing a company spokesperson.

Yahoo Japan adopted the second approach in 2017 when it rolled out a system for employees with children or care for family members to be able to take three DAYs off a Week. The additional DAY off is unpaid.

Shake Shack's test run is unusual for the U.S. food industry, which consistently pays minimum wage. However, the fast food industry is currently facing its highest turnover rate in 23 years and is meeting challenges in filling open positions. According to Peoplesoft data reported by , the average turnover rate at a fast food restaurant reached 150 percent.

Shake Shack is experimenting with four-DAY work Weeks in some of its Las Vegas stores. / VCG photo

The company's trial is part of an effort to retain workers. “If we can figure that out on scale, it could be a big opportunity,”Garutti said at the conference. “We're not promising it yet, but it's something we're having fun trying, and seeing how our leaders like it on a recruiting basis and ongoing retention basis," he added.

People have been prognosticating a four-DAY work Week for decades. Former U.S. President Richard Nixon talked about the shorter work Week in the in 1956. In 1930, economist John Maynard Keynes that if our economic progress continued at its current rate, human beings would dedicate more time to cultivating their lives, thus reducing the need to work to as little as 15 hours a Week. Tim Ferriss' 2007 book on the four-hour work Week has been a worldwide bestseller for years.

Though the appetite is there, it's only been recently that the idea has gained momentum in practice.

A New Zealand company officially adopted the four-DAY work Week for its almost 250 employees in October 2018. After a two-month trial – where employees worked eight hours a DAY for four DAYs a Week – Perpetual Guardian, an estate management company, saw an increase in employee satisfaction, while work performance remained steady.

The firm collected data during and after the test period. Seventy-eight percent of employees said they had a better work-life balance after the trial ended. Seven percent of employees reported feeling less stressed during the trial.

As companies continue experimenting, countries are increasingly calling for fewer work hours. South Korea reduced the maximum number of work hours per Week to 52, from 68. A from the Chinese Academy of Social Sciences (CASS) called for shortened work Weeks and said China could start experimenting with four-DAY work Weeks in certain state-owned enterprises as early as 2020.

(Top image: Opening DAY at the Shake Shack location in Shanghai, China. / VCG photo)