"Faced with slumping lunch traffic from downtown offices and waning consumer interest in pricey salads, Sweetgreen CEO Jonathan Neman is leaning into America's 2020s-era protein craze."
"Sweetgreen's turnaround strategy includes 25% bigger portions of chicken and tofu, recipe upgrades for proteins like chicken and salmon, and member deals on salads as cheap as $13."
"Same-store sales have dropped by as much as 7.6% this summer, with a reported 10.1% plunge in customer traffic."
"'So I think it's pretty obvious that the consumer is not in a great place overall,' Neman said Thursday in the company's second-quarter earnings call."
Sweetgreen is adapting to changing consumer preferences by increasing portion sizes for chicken and tofu and enhancing protein recipes. The fast-casual chain has faced declining same-store sales, dropping by 7.6% this summer, alongside a significant reduction in customer traffic by 10.1%. Investors reacted negatively as Sweetgreen's stock fell over 25% to a record low. The pandemic has transformed corporate lunch habits, with affluent customers becoming more price-conscious due to inflation and economic uncertainty. Looking forward, same-store sales are projected to decrease further, contradicting earlier performance expectations.
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