Sweetgreen, Inc. and its subsidiaries (Sweetgreen) is a mission-driven, next generation restaurant and lifestyle brand that serves healthy food at scale.
The company owns and operates various restaurants in 18 states and Washington, D.C. At Sweetgreen, the company serves Real Food, which for the company means plant-forward; celebrates seasonality; made fresh in the company’s restaurants; prioritizes organic, regenerative, and local sourcing; meets strict and humane animal welfare and seafood st...
Sweetgreen, Inc. and its subsidiaries (Sweetgreen) is a mission-driven, next generation restaurant and lifestyle brand that serves healthy food at scale.
The company owns and operates various restaurants in 18 states and Washington, D.C. At Sweetgreen, the company serves Real Food, which for the company means plant-forward; celebrates seasonality; made fresh in the company’s restaurants; prioritizes organic, regenerative, and local sourcing; meets strict and humane animal welfare and seafood standards; free of highly-processed preservatives, artificial flavors, and refined or hidden sugars; and mindful of the carbon impact of each ingredient to protect future generations.
Menu Offering
The company has designed its menu to be delicious, customizable and convenient to empower the company’s customers to make healthier choices for both lunch and dinner. The company is constantly seeking ways to enhance its menu, all while honoring the company’s Food Ethos.
Core Menu
The company’s core menu features 13 curated, signature items which are offered year-round in all of the company’s locations, including its latest addition of protein plates.
In addition to the company’s core menu items, its single most popular item is the ‘custom’ salad or bowl, which can include millions of combinations from 40-plus ingredients prepared fresh in each of the company’s restaurants every day, as well as the company’s made-from-scratch dressings.
The company keeps its menu fresh by curating a smaller seasonal and limited time offer menu throughout the year. The company’s seasonal menu rotation, which celebrates the strength of its regional supply chain by highlighting fresh local ingredients, increases order frequency by introducing new flavor combinations for the company’s customers to sample.
On the company’s Owned Digital Channels, the company offers exclusive menu items, including seasonal digital exclusives and curated ‘collections’ relevant to each customer.
Supply Chain
The company has built a differentiated, end-to-end supply chain that begins with more than 200 domestic food partners, such as farmers and bakers, and culminates in delicious, high-quality food for the company’s customers. Consistent with the company’s Food Ethos, the company prioritizes ingredients that are certified organic, regenerative, or locally sourced; and meet strict and humane animal welfare and seafood standards. The company builds direct relationships with its farmers and growers and the company is proud to showcase them on the walls of every restaurant and spotlight them on the company’s digital platform. The company’s national supply chain is organized into regional distribution networks that align retail proximity with cultivation, while also making it easy to leverage existing relationships as the company enters new markets in that region.
The company utilizes a rigorous, data-driven real estate selection process to identify new restaurant sites with both high anticipated foot traffic and proximity to workplaces and residences that support the company’s multi-channel approach.
The company continues to test new restaurant design concepts to bring Sweetgreen into a wider variety of trade areas and markets. The company has thoughtfully designed all of its restaurants to both reflect the culture and feel of the company’s local communities and to support the company’s multiple digital channels, including exterior pick-up windows and mobile pickup lanes for digital orders. The company recently launched its second automated restaurant pilot with the opening of the company’s Huntington Beach location. The company continues to learn from these pilots and is incorporating the company’s findings into more of its future restaurant openings.
In 2021, the company acquired a kitchen automation technology company, Spyce Food Co. (Spyce), and had further developed and deployed Spyce’s kitchen automation technology, which the company refers to as the Infinite Kitchen. The company deployed units of the Infinite Kitchen in two of its restaurants during 2023, and expects to deploy additional Infinite Kitchen units in new and existing Sweetgreen restaurants. In 2023, the company’s Infinite Kitchen was named as one of Time’s Best Inventions, which recognizes 200 extraordinary inventions that changed the way the company lives, works, plays, and thinks about what’s possible.
Competition
Among the company’s competitors are a number of multi-unit, multi-market, fast-food, or fast-casual restaurant concepts, some of which are expanding nationally, including companies like Chipotle, CAVA, McDonald's, Panera Bread, and Shake Shack, as well as other quick service salad and health food concepts.
The company faces increasing competition from delivery kitchens, food aggregators, and food delivery marketplaces (such as DoorDash, GrubHub, Uber Eats, ezCater, Sharebite, and others), grocery stores (particularly those that focus on freshly prepared and organic food), and other companies that are enabling the delivery of food to customers, including delivery marketplaces that the company partnered with to deliver Sweetgreen food to customers.
Trademarks and Other Intellectual Property
Domestically, the company registered its core marks (‘Sweetgreen,’ ‘SG,’ and the Sweetgreen logo) and certain other marks, such as ‘SG Outpost,’ ‘Sweetgreen Outpost,’ and ‘SweetPass.’ Internationally, the company has registered its core Sweetgreen mark, along with selected other marks, in foreign jurisdictions, including Australia, Canada, China, the European Union, Hong Kong, Japan, Mexico, South Korea, and the United Kingdom. Most of the company’s marks are registered in multiple international trademark classes, including for restaurant services and related goods and services. The company is pursuing additional trademark and trade dress registrations in the United States and abroad, and will continue to pursue additional trademark registrations to the extent they would be beneficial. Additionally, as a result of the acquisition of Spyce Food Co. (‘Spyce’), the company has two issued patents and four patent applications pending in the United States, and one issued patent in the People’s Republic of China. The company intends to pursue additional patent protection (including in the respect of Spyce’s automation technology) to the extent it would be beneficial. The company has obtained a registration of the Sweetgreen.com domain name as well.
Government Regulation
The company’s operations are subject to the U.S. Occupational Safety and Health Act, which governs worker health and safety; the U.S. Fair Labor Standards Act, which governs such matters as minimum wages and overtime; and a variety of similar federal, state and local laws (such as fair work week laws, immigration laws, laws governing the employment of minors, various wage & hour laws, termination and discharge laws, and state occupational safety regulations) that govern these and other employment law matters.
The company is also subject to the Americans with Disabilities Act (the ‘ADA’) and similar state laws that give civil rights protections to individuals with disabilities in the context of employment, public accommodations, and other areas, including the company’s restaurants, website, and smartphone applications.
Seasonality
The company’s revenue fluctuates as a result of seasonal factors and weather conditions. Historically, the company’s revenue has been lower in the first and fourth quarters of the year (year ended December 2023) due, in part, to the holiday season and the fact that fewer people eat out during periods of inclement weather (generally the winter months, though inclement weather conditions may occur in certain markets at any time of the year) than during periods of mild to warm weather (the spring, summer, and fall months). In addition, a core part of the company’s menu, salads, has proven to be more popular among consumers in the warmer months. As consumer behavior trends have changed due in part to the COVID-19 pandemic and the emergence of hybrid or remote work environments, the seasonality in the company’s business has been less predictable than in prior years and the company has seen an increase and prolonged negative impact on the company’s revenue around national holidays.
History
Sweetgreen, Inc. was founded in 2006. The company was incorporated in 2007.