Shake Shack’s well-publicized claim of offering “no hormone” chicken sandwiches has recently come under scrutiny, causing a stir in the fast-food industry. These allegations originate from a shareholder group, The Accountability Board, who argue that no restaurant chain in the country uses hormones in its chicken, rendering Shake Shack’s claims redundant.
Shake Shack’s Hormone-Free Claim
In 2023, Shake Shack’s CEO Randy Garutti announced in the Stand For Something Good Report that the company was committed to improving their food lineup with “hormone- and antibiotic-free proteins”. The fast-food giant prides itself on serving poultry and bacon that purportedly contain no hormones, a claim that is accompanied by a footnote stating federal regulations prohibit the use of hormones or steroids in chicken and pork.
However, The Accountability Board, a shareholder activist group that focuses on stewardship and transparency, has expressed skepticism over these claims, calling them “difficult to understand”. The group, which also has investments in other fast food businesses including Jack in the Box, McDonald’s and The Wendy’s Company, has proposed Shake Shack provide proof of their hormone-free chicken or publish a risk analysis of making such statements.
Shake Shack’s Response
In response to these allegations, Shake Shack has requested that the Securities and Exchange Commission allows the proposal to be omitted from its 2024 proxy statement without facing regulatory repercussions. Furthermore, the company is now shifting its marketing language to “no added hormones”.
However, this change in terminology has done little to appease Josh Balk, the CEO of the Accountability Board, who criticized the company for attempting to “quietly sweep” misleading claims “under the rug”. He further argued that replacing one misleading claim with another is an inadequate response.
Despite the controversy, a Shake Shack spokesperson has asserted that the change to “no added hormones” doesn’t indicate any alterations to their chicken suppliers or any of their supply chain and food policies. They emphasized that this is simply a language change.
Fast Food Industry and Animal Welfare
Shake Shack is not the only fast food enterprise to face criticism over animal welfare issues. McDonald’s, for instance, faced pressure from activist investor Carl Icahn over its treatment of pigs. Despite losing a proxy fight in 2022, McDonald’s has committed to completely phase out the use of gestation crates for pregnant pigs by 2024, reflecting a growing industry-wide concern for animal welfare.
As the fast-food industry continues to navigate the complex terrain of animal welfare and transparency, chains like Shake Shack are being held accountable for their claims. This scenario offers a stark reminder that corporate communications and marketing claims must be accurate and transparent, to maintain consumer trust and confidence.
In the ongoing conversation about animal welfare in the fast-food industry, it is clear that claims about hormone-free chickens or cruelty-free practices are not just buzzwords, but significant factors that can influence consumer choice.
For more insights on the business stories shaping Europe, subscribe to the new Fortune CEO Weekly Europe newsletter. Sign up for free here.
For more information about the fast-food industry’s approach to animal welfare, visit the Humane Society International’s website.
