The Economics of Everyday Things The Economics of Everyday Things

82. Chain Restaurant Recipes

Oct 15, 2026 · 16m

Summary

This episode explores the complex economics behind developing menu items for large restaurant chains like Shake Shack. Host Zachary Crockett interviews Shake Shack’s VP of Culinary Innovation, John Karangis, and consultant Walter Zoromsky to discuss how chains balance flavor, cost, and consistency across thousands of locations. They examine the year-long process involving supply chain logistics, "speed scratch" cooking techniques, and value engineering to ensure dishes are profitable and reproducible at scale.

Topics discussed

Sponsorships: Principal and Amica Insurance Inside Shake Shack's secret Innovation Kitchen Independent vs. chain restaurant menu flexibility The year-long process of developing a new menu item Supply chain constraints and ingredient cost management Creating affordable luxury: The black truffle burger The challenge of consistency across hundreds of locations Sponsorships: U.S. Bank, Wix, and Mint Mobile Introduction to consultant Walter Zoromsky Recipe development as a mathematical equation Speed scratch cooking and pre-made ingredients Case study: Optimizing seafood chowder production Value engineering and bulk ingredient negotiation Balancing menu variety with operational efficiency Episode credits and NDA joke Sponsorships: ZepBound, Wise, and Bob Evans
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