Shake Shack is closing up its shop inside San Francisco’s largest mall as new owners take over the beleaguered property.
A Nov. 25 filing with state labor officials revealed that the fast-food chain will permanently close its location inside the Westfield San Francisco Centre on Market Street on Dec. 14, a move that will impact 26 employees.
Shake Shack told FOX Business that San Francisco Centre, which has been plagued by soaring vacancies and a string of departures by major retailers, was sold to a new owner that is requiring all tenants to vacate the premises.
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“We remain focused on supporting our people through this transition and have offered opportunities to all 26 team members to transfer to nearby Shake Shack locations,” a Shake Shack spokesperson said in a statement. “We look forward to welcoming our guests at our other Bay Area Shacks and continuing to be part of the community.”
The remaining tenants were also issued notices from the property management’s legal counsel, informing them that their leases were “extinguished” by a recent ownership change, and they needed to vacate immediately, according to the San Francisco Business Times.
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The mall’s new owner is an LLC known as DBJPM 2016-SFC Emporium. The new owners assumed control following a foreclosure auction on Nov. 12 that transferred the property away from its former operators, Unibail-Rodamco-Westfield and Brookfield Properties, The Real Deal reported. The previous owners defaulted on the loan and effectively walked away from the site in 2023.
Between 2020 and 2023, the mall lost 46% of its stores, The San Francisco Standard reported. That includes its anchor department store, Nordstrom, which announced in 2023 that it would close both of its downtown San Francisco locations, including its flagship store inside the Westfield San Francisco Centre.
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The mall’s other anchor tenant, Bloomingdale’s, left earlier this year. Anchor tenants in malls are key to the success of the mall given that they’re traffic engines. When anchors close up shop, it undermines viability for the remaining retailers because foot traffic drops sharply.
In recent months, at least six dining spots have left the mall, including a Jamba Juice, Izzy & Wooks sandwich shop and Mija Cochinita taco shop, according to the San Fransisco Chronicle.
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