Neutral and Shake Shack - A Sweet Path to a Sustainable Future
As a pioneer in certified carbon-neutral dairy products, Neutral has been providing foodservice partners with an effective solution to reduce their carbon footprint seamlessly and with credibility. Neutral, the first certified carbon-neutral food company in the United States, offers a revolutionary approach to sustainable dairy production. For Shake Shack, a company with a longstanding commitment to “do the right thing,” this was an intriguing way to deepen their impact for the planet and the communities they serve.
So what’s at stake?
The foodservice industry faces dual pressures: internal mandates to achieve corporate social responsibility goals, and external consumer demand for sustainable practices. Many businesses, including prominent chains like Shake Shack, are motivated to find credible solutions to reduce their environmental impact without disrupting operations or incurring significant additional costs. The challenge lies in avoiding the pitfalls of greenwashing while implementing authentic, effective sustainability initiatives.
In fact, Corey stated “I am hesitant about carbon offsets. I think they're often used in excess, but realistically, thinking about how we're going to reach climate goals, carbon offsets are going to have to play a part. It's just making sure that the carbon offsets that are being purchased or acquired are verifiable and are legit. And after I had my conversation with Anne, I felt really reassured based on the steps that she said Neutral takes to make sure that the carbon offsets that you [Neutral] acquire are legit.”
How we met
Shake Shack, a major player in the fast-casual restaurant sector, is renowned for its commitment to quality and sustainability. Corey Blumenthal, Sustainability Specialist at Shake Shack, discovered Neutral while attending a virtual industry webinar and had an “ah-ha” moment.
With Neutral, Shake Shack could lessen the impact of its fluid dairy supply chain, without compromising taste or raising costs for consumers. Impressed by Neutral's presentation and its focus on inset projects and genuine carbon offsets within the dairy industry, Corey reached out to Neutral’s carbon reduction team to explore a potential collaboration.
Like many knowledgeable buyers, Corey wanted more context: was Neutral really making meaningful change, and if so, how would that affect the environmental impact of Shake Shack’s supply chain?
Boiling it down
Ultimately, the key factors that influenced Shake Shack’s decision included:
Seamless Integration
Neutral’s dairy milk required no changes to existing recipes or operational processes at Shake Shack, ensuring a smooth transition.
“We're always looking for ways to minimize our environmental impact and understanding that the majority of the products we sell are high emissions beef, dairy. So finding a way that we can reduce the emissions associated with each of the products that we sell, any of our menu items is definitely a priority for us, specifically me as I sit on our supply chain team. So what it looked like was I brought the idea to our supply chain team and said, look, no build needs to change. The way the restaurants receive. The milk is going to remain the same. What it looks like, what it tastes like, nothing is changing. The only thing that's changing is our supplier. I do think cost also plays a big role in most supply chain teams' decisions, and we were able to work so that it made sense fiscally.” - Corey Blumenthal, Shake Shack
Product Quality
Product Quality: The switch to Neutral’s milk did not impact the taste or appearance of the milkshakes, eliminating the need for consumer re-education.
“It just seems like a seamless transition because it's not changing the actual product. Also from a consumer perspective, we don't have to educate them on a new product. It's going to taste the same as the milkshake that they bought last week, but now it's being made with Neutral.” - Corey Blumenthal, Shake Shack
Legitimacy & Verification
Neutral's transparent approach to carbon insetting and offsetting reassured Shake Shack of the authenticity and effectiveness of Neutral’s environmental product claims.
“You have a solid team of experts, people with backgrounds in carbon accounting, professors, and I think that it made us feel confident that the work that you guys are doing, like I said, is accurate. It's not just your one sustainability person doing all of the carbon offsets. It's a whole team of people looking at it and picking what makes sense.” - Corey Blumenthal, Shake Shack
A simple rollout
Implementing Neutral’s carbon-neutral milk was straightforward. Shake Shack's supply chain team, already adept at managing supplier transitions, found the switch to be simple and cost-effective. “The Neutral team was really flexible and able to help us work through all the kinks – it was a collaboration between teams. We don't want to raise the price of the product for consumers, and choosing Neutral, we didn’t have to make compromises,” said Corey.
Immediate impact on the planet
The environmental benefits were significant and quickly apparent. Shake Shack could easily calculate the potential for emissions avoided by using Neutral’s milk.
Today, Shake Shack has already avoided:
more than 375 metric tons (MT) of CO2e
or 873,000 miles driven by an average gasoline-powered passenger vehicle
(Source: US EPA Greenhouse Gas Equivalencies Calculator)
But what do customers think?
With no noticeable change in product quality, customers had no negative feedback. They were still getting the same quality milkshakes they’d come to expect, but Shake Shack was now able to actively promote the environmental benefits of the products as well.
“I actually think no feedback is good because we haven't received anything. No one has said it tastes different than it was, which our operations team and our supply chain team would think that was a concern. We wanted to make sure we're still giving our customers the milkshakes that they want. So in that sense, I think it's great that we haven't heard anything.”
—Corey Blumenthal, Shake Shack
The partnership between Neutral and Shake Shack serves as a meaningful example of how foodservice companies can significantly reduce their environmental impact through strategic collaborations. Neutral’s commitment to authenticity, combined with its innovative carbon-neutral dairy products, make it a seamless partner for other companies in the industry seeking to enhance their sustainability efforts without compromising on quality.
“You're offering a product that we can use to make our milkshakes more sustainable without having to increase the price. Because again, consumers say one thing… But then when it comes down to it and you're actually handing over your credit card, you're going to choose the option that's less expensive… In order to make this mainstream, it's important to find ways to just make the consumer make this choice, which is kind of another goal of mine is just fixing our supply chain so that consumers don't even have to choose the sustainable alternative. What we're offering is.” - Corey Blumenthal, Shake Shack
Let us help you!
For foodservice leaders looking to adopt sustainable practices, Neutral offers a viable, cost-effective solution that does not compromise product quality. Reach out to our sales team to see how we can help you achieve your sustainability goals, grow your brand’s reputation, increase customer loyalty, and change the arc of global warming for good!