Sweetgreen Explained

Sweetgreen, Inc.
Type:Public
Industry:Restaurants
Genre:Fast casual
Hq Location City:Los Angeles, California
Hq Location Country:U.S.
Num Locations:221
Num Locations Year:December 2023
Area Served:California, Colorado, Connecticut, DC, Florida, Illinois, Indiana, Georgia, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, Pennsylvania, Rhode Island, Texas, Virginia, Wisconsin, Washington
Products:Salads
Revenue: million
Revenue Year:2023
Income Year:2023
Net Income: US$-113 million
Net Income Year:2023
Assets: US$857 million
Assets Year:2023
Equity: US$483 million
Equity Year:2023
Num Employees:6,186
Num Employees Year:December 2023
Footnotes:[1]

Sweetgreen (legally Sweetgreen, Inc., stylized as sweetgreen, previously swɘetgreen) is an American fast casual restaurant chain that serves salads. It was founded in November 2006 by Nicolas Jammet, Nathaniel Ru, and Jonathan Neman. In August 2007, they opened their first store in Washington, D.C., three months after they graduated from the McDonough School of Business at Georgetown University.[2]

Sweetgreen's corporate headquarters moved to the Los Angeles area from Washington, D.C. in 2016.[3], it had 221 stores in operation in 18 states and the District of Columbia.[4] [5] [6] [7] [8] The CEO is Jonathan Neman,[9] and the company had over 4,000 employees as of 2016.[10]

History and financing

Sweetgreen was founded in 2006[11] [12] by Nicolas Jammet, Nathaniel Ru, and Jonathan Neman, all Georgetown University students at the time. The trio were disappointed with campus food options.[13]

Sweetgreen raised its initial $375,000 of startup funding from investors including the three founders' parents, Joe Bastianich, Seth Goldman, and Washington's Latino Economic Development Center.[14] In 2013, it accepted a $22 million investment from Revolution Growth, a venture capital fund founded by Steve Case.[15] In 2014, it received $18.5 million in investment from Revolution Growth. In 2015, it raised an additional $35 million in investment under the lead of T. Rowe Price with contributions from existing investor Revolution Growth.[16] The company has raised over $95 million to date.

In 2018, the startup raised a $200 million Series H round led by Fidelity that valued the company at more than $1 billion, bringing Sweetgreen's total funding to $365 million.[17] In the fall of 2019, Sweetgreen raised an additional $150 million Series I round led by Lone Pine Capital and D1 Capital Partners, bringing the company's total valuation to $1.6 billion.[18]

In July 2021, Axios reported that Sweetgreen had filed confidentially for an IPO.[19] It became a public company on November 18, 2021, traded under the New York Stock Exchange symbol SG.

In August 2021, Sweetgreen announced its plans to acquire Massachusetts Institute of Technology startup, Spyce, a Boston-based restaurant that uses service robots to prepare meals.[20] Both Spyce locations closed and the team focused on building a "third generation" of its technology to increase throughput and accuracy for Sweetgreen, potentially starting in two locations in 2023.[21]

In August 2022, Sweetgreen opened a location in Birmingham, Michigan, their first in Michigan, with plans to expand to Troy and Ann Arbor later in 2022.

In May 2023, Sweetgreen opened its first robot-driven Infinite Kitchen location in Naperville, Illinois, where the automation is confined to assembling the food, not the food preparation itself.[22] [23]

In May 2024, Sweetgreen reported a 26% Q1 revenue increase, reaching $157.9 million. This growth was primarily attributed to price increases across its menu. Notably, the company achieved an 18.1% profit margin per store, which is considered exceptional within the foodservice industry. Of particular interest were the results from two experimental "Infinite Kitchens" locations, which utilize robotic automation for bowl assembly. These locations reported a significantly higher profit margin of 28%, showcasing the potential impact of automation on the chain's operational efficiency.[24]

Menu and digital app

Sweetgreen serves a variety of salads and warm bowls.[25] Their seasonal menu rotates 5 times a year, based on produce availability and location.[26]

The restaurant launched a mobile app in 2015.[27] In May 2020, the brand added order status tracking and push notifications in real time, allowing the customers to know when their order is received or ready following restrictions from the COVID-19 pandemic.[28] In January 2020, Sweetgreen launched its own delivery service within their app.[26]

Customers can order in-store or through the app for pickup, delivery and outpost as well as use their app to pay for in-store ordering. They are also in various marketplaces.[29]

Social actions

Sweetgreen has partnered with local chefs and restaurants on time-limited menu items, often when opening locations in a new city. These collaborations have included chef duo Jon and Vinny in Los Angeles,[30] Nancy Silverton,[31] Michael Solomonov in Philadelphia area,[32] Danny Bowein in New York,[33] Ken Oringer in Boston,[34] and Chris Shepherd in Houston.[35]

Sweetgreen has collaborated multiple times with David Chang of Momofuku, including a new salad dressing featured in the New York locations during the summer of 2014.[36] In February 2020, Sweetgreen again partnered with David Chang to launch the Tingly Sweet Potato and Kelp Bowl. The collaboration brought attention to ocean acidification and its effects on marine life through the use of sustainable kelp.[37]

In 2015, in the lead-up to the Sweetlife music festival, Sweetgreen collaborated with musician Kendrick Lamar leading up to his second appearance at the Sweetlife music festival. The salad, "Beets Don't Kale My Vibe," was a pun playing one of Lamar's most well-known lyrics. The collaboration resulted in over 100 articles featuring the salad, and 10% of proceeds from the salad went to FoodCorps to connect kids to real food.[38]

In 2018, Sweetgreen partnered with Hank's Mini Market, a family-owned corner store in L.A.'s Hyde Park neighborhood, a known food desert, to help bring healthier options to its customers as part of their work to expand food access.[39]

In 2019, Sweetgreen partnered with FoodCorps again,[40] committing $1 million over the next two years to support FoodCorps's endeavours.[41]

During the onset of the COVID-19 crisis, Sweetgreen announced the launch of the Sweetgreen Impact Outpost Fund in partnership with World Central Kitchen to deliver free meals to hospital workers on the frontlines.[42] In 2020, the company served more than 400,000 meals to over 400 hospitals nationwide.[43]

Sweetgreen made it easier for employees to vote in the 2020 election by providing up to 3 hours of paid time off for all hourly employees[44] to either vote early or vote on election day.

In May 2021, Sweetgreen announced their first-ever national athlete ambassador, tennis player Naomi Osaka. Osaka announced a new menu item supporting The Asian American Foundation.[45] [46]

Lawsuits

In April 2023, Chipotle Mexican Grill sued Sweetgreen claiming that its trademark has been violated. As a result Sweetgreen changed the name of its burrito bowl “as part of a tentative agreement to resolve the lawsuit.”[47] [48]

Sweetlife Festival

Between 2011 and 2016, Sweetgreen hosted an annual music and food festival at the Merriweather Post Pavilion in Columbia, Maryland.[49]

Headliners

Awards

Sweetgreen was named one of the Most Innovative Companies in 2019[50] and 2020,[51] and it won the 2020 Webby Award for Food & Drink in the Apps, Mobile & Voice category.[52]

Notes and References

  1. Web site: Sweetgreen, Inc. 2023 Annual Form 10-K Report . . February 29, 2024.
  2. News: Inheriting the restaurant gene. Witchel. Alex. June 27, 2013. The New York Times. November 16, 2014. July 28, 2014. https://web.archive.org/web/20140728042223/http://www.nytimes.com/2013/06/28/dining/sweetgreen-a-salad-chain-is-coming-to-manhattan.html?pagewanted=all. live.
  3. News: Sweetgreen to move headquarters to L.A.. Washington Post. September 20, 2018. September 20, 2018. https://web.archive.org/web/20180920122848/https://www.washingtonpost.com/business/capitalbusiness/sweetgreen-to-move-headquarters-to-la/2016/01/06/f53a115e-b4b0-11e5-a76a-0b5145e8679a_story.html. live.
  4. Web site: How these 33-year-olds are taking Sweetgreen from a dorm room start-up to the 'Starbucks of salad'. CNBC. March 13, 2019. April 20, 2020. April 12, 2020. https://web.archive.org/web/20200412225057/https://www.cnbc.com/2019/03/13/sweetgreen-from-a-dorm-room-start-up-to-the-starbucks-of-salad.html. live.
  5. Web site: sweetgreen: Order Online. order.sweetgreen.com. November 7, 2019. November 7, 2019. https://web.archive.org/web/20191107173628/https://order.sweetgreen.com/locations. live.
  6. Web site: Sweetgreen, Inc 10-Q: Quarterly report for quarter ending March 27, 2022 . May 6, 2022 . SEC.gov . . 5.
  7. Web site: August 10, 2022 . Salad bar restaurant sweetgreen opens first Michigan location in Oakland County . August 10, 2022 . https://web.archive.org/web/20220810074819/https://www.clickondetroit.com/news/local/2022/08/09/salad-bar-restaurant-sweetgreen-opens-first-michigan-location-in-oakland-county/ . August 10, 2022 .
  8. Web site: Sweetgreen locations .
  9. Web site: Sweetgreen .
  10. News: Sweetgreen raises more lettuce to continue expansion. The Washington Post. March 9, 2016. March 9, 2016. https://web.archive.org/web/20160309194958/https://www.washingtonpost.com/news/on-small-business/wp/2015/07/01/sweetgreen-raises-more-lettuce-to-continue-expansion/. live.
  11. Web site: Sweetgreen shares surge 76% in salad chain's stock market debut . . Amelia Lucas . November 18, 2021.
  12. Web site: Sweetgreen, Inc. Form S-1 . SEC.gov . . October 25, 2021 . 15.
  13. Web site: Andrea . Kramar . How these 33-year-olds are taking Sweetgreen from a dorm room start-up to the 'Starbucks of salad' . CNBC . March 31, 2022 . en . March 13, 2019.
  14. News: From salad shop to music festival, Sweetgreen branches out. Bhattarai. Abha. June 16, 2013. The Washington Post. November 16, 2014. November 29, 2014. https://web.archive.org/web/20141129092131/http://www.washingtonpost.com/business/capitalbusiness/from-salad-shop-to-music-festival-sweetgreen-branches-out/2013/06/14/234aaeb4-cd2d-11e2-8f6b-67f40e176f03_story.html. live.
  15. News: Revolution Fund Invests in Sweetgreen Salad Chain. Alden. William. December 4, 2014. The New York Times. November 16, 2014. November 29, 2014. https://web.archive.org/web/20141129093522/http://dealbook.nytimes.com/2013/12/04/revolution-fund-invests-in-sweetgreen-salad-chain/. live.
  16. Web site: Stone. Madeline. Hot new salad chain Sweetgreen just raised a fresh $35 million. Business Insider. March 9, 2016. March 4, 2016. https://web.archive.org/web/20160304094106/http://www.businessinsider.com/sweetgreen-raises-35-million-from-t-rowe-price-2015-6. live.
  17. News: Sweetgreen is officially a unicorn. TechCrunch. November 15, 2018. en-US. November 15, 2018. https://web.archive.org/web/20181115015449/https://techcrunch.com/2018/11/14/sweetgreen-is-officially-a-unicorn/. live.
  18. News: Salad Chain Sweetgreen's Tech Focus Helps Push Valuation to $1.6 Billion. Katie. Roof. Wall Street Journal. September 20, 2019. www.wsj.com. May 12, 2021. May 12, 2021. https://web.archive.org/web/20210512084640/https://www.wsj.com/articles/salad-chain-sweetgreens-tech-focus-helps-push-valuation-to-1-6-billion-11569008888. live.
  19. Web site: Primack. Dan. Sweetgreen files for IPO. July 8, 2021. Axios. June 21, 2021 . en. July 9, 2021. https://web.archive.org/web/20210709191005/https://www.axios.com/sweetgreen-ipo-2173c14d-4670-4c9c-807d-2a6b820d8617.html. live.
  20. News: Yang . Angela . Sweetgreen salads made by robots? It's coming, after restaurant chain acquires MIT startup . . August 24, 2021 . August 24, 2021 . August 24, 2021 . https://web.archive.org/web/20210824210717/https://www.bostonglobe.com/2021/08/24/business/your-sweetgreen-salad-may-soon-be-made-by-robot-chain-is-acquiring-mit-startup-spyce/ . live .
  21. News: . Robots in the kitchen? Local engineers are making it a reality. . Scott Kirsner . January 27, 2023.
  22. Web site: Lucas . Amelia . June 24, 2023 . Inside Sweetgreen's first automated location — and the salad chain's plans to take the tech nationwide . CNBC.
  23. Web site: Dunn . Elizabeth G . May 17, 2023 . Sweetgreen's Salad Robot Is Almost Ready for Lunch . Bloomberg Businessweek.
  24. News: Klein . Danny . Sweetgreen is Starting to Realize its Potential . QSR Magazine . 2024-05-10 . 2024-05-13 .
  25. Web site: Sweetgreen hosting one-day $5 promo. July 8, 2020. May 12, 2021. May 12, 2021. https://web.archive.org/web/20210512121501/https://www.fastcasual.com/news/sweetgreen-hosting-one-day-5-promo/. live.
  26. News: In a Burger World, Can Sweetgreen Scale Up?. The New York Times. January 4, 2020. Dunn. Elizabeth G.. May 12, 2021. May 19, 2021. https://web.archive.org/web/20210519235046/https://www.nytimes.com/2020/01/04/business/sweetgreen-salads.html. live.
  27. News: Sweetgreen updates its app to allow customers to skip wait, order online - the Washington Post . . May 12, 2021 . September 14, 2018 . https://web.archive.org/web/20180914044513/https://www.washingtonpost.com/lifestyle/magazine/sweetgreen-updates-its-app-to-allow-customers-to-skip-wait-order-online/2016/07/13/accd2110-28c1-11e6-ae4a-3cdd5fe74204_story.html . live .
  28. Web site: Cansler. Cherryh. May 29, 2020. Pandemic speeds up operational changes at Sweetgreen. July 8, 2021. www.fastcasual.com. en. May 12, 2021. https://web.archive.org/web/20210512065149/https://www.fastcasual.com/articles/pandemic-speeds-up-operational-changes-at-sweetgreen/. live.
  29. Web site: Sweetgreen Pilots No-Fee Delivery Service To Corporate Offices. Alicia. Kelso. Forbes. May 12, 2021. May 12, 2021. https://web.archive.org/web/20210512150329/https://www.forbes.com/sites/aliciakelso/2018/09/18/sweetgreens-new-delivery-channel-may-challenge-b2b-catering/?sh=36ac0cd87eab. live.
  30. News: Josh. Scherer. Bowling for Salad: Jon and Vinny Are Going Fast-Casual With Sweetgreen. Lamag - Culture, Food, Fashion, News & Los Angeles. September 28, 2015. October 9, 2021. September 29, 2020. https://web.archive.org/web/20200929172958/https://www.lamag.com/digestblog/get-a-taste-of-jon-and-vinny-in-a-bowl-courtesy-of-sweetgreen/. live.
  31. Web site: Nancy Silverton's Famous Chopped Salad Is About to Be Available Nationwide. Food & Wine. May 12, 2021. May 12, 2021. https://web.archive.org/web/20210512065148/https://www.foodandwine.com/news/nancy-silverton-chopped-salad-sweetgreen. live.
  32. Web site: Michael Solomonov's Got His Very Own Sweetgreen Salad – Philadelphia Magazine. April 12, 2017 . May 12, 2021. May 12, 2021. https://web.archive.org/web/20210512121451/https://www.phillymag.com/foobooz/2017/04/12/michael-solomonov-zahav-bowl-sweetgreen-salad-philly/. live.
  33. Web site: Sweetgreen and Mission Chinese have teamed up on a tasty new bowl. Richard. Morgan. Time Out New York. November 2, 2017 . May 12, 2021. May 12, 2021. https://web.archive.org/web/20210512084657/https://www.timeout.com/newyork/blog/sweetgreen-and-mission-chinese-have-teamed-up-on-a-tasty-new-bowl-110217. live.
  34. Web site: Ken Oringer Brings the "Toro Bowl" to Sweetgreen in Boston. March 24, 2017 . May 12, 2021. May 12, 2021. https://web.archive.org/web/20210512134419/https://www.bostonmagazine.com/restaurants/2017/03/24/ken-oringer-sweetgreen-collaboration/. live.
  35. Web site: Chris Shepherd cooks up some southern flavor for buzzy new salad spot. CultureMap Houston. May 12, 2021. May 12, 2021. https://web.archive.org/web/20210512065149/https://houston.culturemap.com/news/restaurants-bars/09-20-19-sweetgreen-montrose-restaurant-salad-chris-shepherd-collaboration-southern-chop-bowl/. live.
  36. Web site: Lo. Karen. David Chang on Momofuku and Sweetgreen Collaboration. The Daily Meal. June 3, 2014. October 9, 2021. September 25, 2018. https://web.archive.org/web/20180925092253/https://www.thedailymeal.com/news/watch-david-chang-momofuku-and-sweetgreen-collaboration/60314. live.
  37. News: Sweetgreen and David Chang hope 2020 is the year kelp becomes cool - the Washington Post . . May 12, 2021 . January 28, 2021 . https://web.archive.org/web/20210128032502/https://www.washingtonpost.com/news/voraciously/wp/2020/02/11/for-sweetgreen-2020-is-the-year-kelp-becomes-cool/ . live .
  38. Natalie. Weiner. Kendrick Lamar Gets On-Brand Salad Called 'Beets Don't Kale My Vibe'. Billboard. March 9, 2016. March 29, 2016. https://web.archive.org/web/20160329224107/http://www.billboard.com/articles/columns/the-juice/6546327/kendrick-lamar-beets-dont-kale-my-vibe-salad-sweetgreen. live.
  39. Web site: How Sweetgreen Helped This Corner Store With A Healthy Transformation. Adele. Peters. April 27, 2018. Fast Company. May 12, 2021. May 12, 2021. https://web.archive.org/web/20210512134419/https://www.fastcompany.com/40563651/how-sweetgreen-helped-this-corner-store-with-a-healthy-transformation. live.
  40. Web site: Sweetgreen And FoodCorps Partner To Reimagine The American School Cafeteria Experience. Nicole. Rasul. Forbes. May 12, 2021. May 14, 2021. https://web.archive.org/web/20210514011725/https://www.forbes.com/sites/nicolerasul/2019/03/11/sweetgreen-and-foodcorps-partner-to-reimagine-the-american-school-cafeteria-experience/. live.
  41. News: What if Children Ran the School Lunchroom?. Anahad. O'Connor. The New York Times. January 3, 2020. May 12, 2021. May 12, 2021. https://web.archive.org/web/20210512065147/https://www.nytimes.com/2020/01/03/well/eat/School-cafeteria-lunch-children-health-foodcorps-sweetgreen.html. live.
  42. Web site: Sweetgreen, World Central Kitchen Look to Feed Medical Personnel . live . https://web.archive.org/web/20210512084648/https://www.qsrmagazine.com/news/sweetgreen-world-central-kitchen-look-feed-medical-personnel . May 12, 2021 . May 12, 2021 . QSR magazine.
  43. Web site: December 23, 2020 . Reflecting on 2020 . October 21, 2021 . Medium.com.
  44. Web site: August 27, 2020 . Starbucks, Sweetgreen leading employees to the polls . live . https://web.archive.org/web/20210512084747/https://www.fastcasual.com/articles/starbucks-sweetgreen-leading-employees-to-the-polls/ . May 12, 2021 . May 12, 2021 . www.fastcasual.com.
  45. Web site: Naomi Osaka partners with Sweetgreen as 1st athlete ambassador. Good Morning. America. Good Morning America. May 12, 2021. May 10, 2021. https://web.archive.org/web/20210510153207/https://www.goodmorningamerica.com/food/story/naomi-osaka-teams-sweetgreen-1st-athlete-ambassador-youngest-77507458. live.
  46. News: Haddon . Heather . Sweetgreen Bet Big on Naomi Osaka. Then It Doubled Down. . June 7, 2021 . Wall Street Journal . June 4, 2021 . June 7, 2021 . https://web.archive.org/web/20210607042525/https://www.wsj.com/articles/sweetgreen-bet-big-on-naomi-osaka-then-it-doubled-down-11622825074 . live .
  47. Web site: April 6, 2023 . Chipotle Sues DC-Born Sweetgreen Over Its Chicken Burrito Bowl - Washingtonian . April 8, 2023 . en-US.
  48. News: Pisani . Joseph . Sweetgreen Renames Its Chipotle Chicken Burrito Bowl, Ending Days Old Legal Battle . April 8, 2023 . Wall Street Journal . April 6, 2023 . en-US.
  49. News: Ramanathan . Lavanya . Sweetgreen just pulled the plug on the Sweetlife Festival. Here's what's likely to replace it. . January 1, 2019 . . January 27, 2017 . January 2, 2019 . https://web.archive.org/web/20190102050400/https://www.washingtonpost.com/news/going-out-guide/wp/2017/01/27/sweetgreen-just-pulled-the-plug-on-the-sweetlife-festival-heres-whats-likely-to-replace-it/ . live .
  50. Web site: Farley. Amy. February 19, 2019. The winner of the fast-casual salad wars? Sweetgreen, with 91 restaurants in 8 states, and a network of 150 farmers. May 12, 2021. Fast Company. en-US. May 12, 2021. https://web.archive.org/web/20210512221927/https://www.fastcompany.com/90298904/sweetgreen-most-innovative-companies-2019. live.
  51. Web site: Farley. Amy. March 10, 2020. Sweetgreen's free delivery service is the Trojan horse of the salad wars. May 12, 2021. Fast Company. en-US. May 12, 2021. https://web.archive.org/web/20210512221925/https://www.fastcompany.com/90457701/sweetgreen-most-innovative-companies-2020. live.
  52. Web site: Kastrenakes . Jacob . Here are all the winners of the 2020 Webby Awards . The Verge . May 22, 2020 . en . May 20, 2020 . August 11, 2021 . https://web.archive.org/web/20210811061251/https://www.theverge.com/2020/5/20/21263445/2020-webby-awards-winners-lil-nas-x-nasa-jon-krasinski . live .

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