Sweetgreen Expands Beyond Salads with New Wraps and Price Adjustments
Sweetgreen introduces affordable wraps and transparent pricing to boost sales and customer traffic after declining visits.
POLICY WIRE — Washington, D.C. — Sweetgreen is shifting its strategy to move beyond its reputation as a high-priced salad chain by introducing more affordable menu options and adjusting pricing structures to attract more customers.
The company recently launched four new wraps nationwide, starting at around $11, which have become a popular choice, making up roughly one in five transactions by September. This move aims to diversify its offerings and reduce the perception of being an expensive dining option.
Chief Financial Officer Jamie McConnell explained that the previous pricing model made many items seem costly, even if they were competitive with other fast-casual chains. The company has also revised how it charges for customized salads, offering a base meal with protein, two bases, and four toppings for about $13, including dressing and bread, to increase transparency and avoid unexpected costs for customers.
Sweetgreen spent over two years developing the wraps before testing them in Los Angeles, expanding to 70 locations before a national rollout. Despite this effort, sales at established restaurants dropped 6.2% in the second quarter, with customer visits falling 2%. The company has since adjusted its annual forecast, now expecting a steeper decline of 7% to 8%.
Food-safety concerns, including issues with lettuce and jalapeños, have also impacted the restaurant industry, though Sweetgreen confirmed it did not use the iceberg lettuce linked to a recent health scare. The company is also focusing on improving service speed by preparing ingredients daily and assigning dedicated staff during peak hours to streamline operations.
Reporting by Policy-Wire (PW)
