By writer Katy Khaos

Shake Shack is one of my favorite places to enjoy a burger and I always have a good experience there. Service is great, venues are clean and the food is made with quality ingredients. More importantly, they just proved that companies can make a ton of money while paying their workers well at the same time–WITHOUT the force of the State! Relentless rally-rebels can go home now!

The New York-based burger joint went public on Friday, January 30th and made a killing. Their IPO spiked higher than 130% in the first day, starting at $21/share and closing at $45.90. Of course, the price will likely adjust but it was still a historic and successful day. The Shack has shaken the fast food industry by experiencing large growth (21 million to 140 million in four years) while the rest of the burger industry is slightly shrinking.

Why is Shake Shack different?! One reason is because they pay their employees better than industry standards. Workers in the fast food industry generally earn a median hourly income  between 8 to 9 dollars. The minimum hourly wage in New York is $8.75 but the starting wage at Shake Shack is $10. They receive benefits, 401K retirement plan and paid vacation time. The entire management team was rewarded with stock options when they went public. The founder, Danny Meyer, explained that paying workers well is good for business. A higher wage will attract a higher caliber employee which then translates to better guest service.

This information definitely goes against the silly, Statist argument that we need government guns to force greedy businesses to pay their employees a fair wage. The company voluntarily chose to value their employees as a part of their business model and they were heavily rewarded in a way that the whole world can see. Their reputation is even better now after the press and attention. People prefer to invest in companies that are doing good things all around. Shake Shack set an example that other companies might want to emulate in the future.

Shake Shack is groundbreaking because…READ MORE