Sweetgreen is adding lower-priced menu choices and changing how it presents prices as the fast-casual chain seeks to bring in more diners. The Los Angeles-based company introduced four wraps nationwide in May, each priced under $15 and averaging about $12.50, according to a company news release cited in the report.
Chief Financial Officer Jamie McConnell told The Wall Street Journal that Sweetgreen wants customers to see more affordable options when they enter a restaurant. He said the menu previously displayed more items priced above $15 than below that threshold, which he believed contributed to the chain’s reputation for being expensive, even when some of its prices compared favorably with competitors.
The menu changes come as Sweetgreen tries to address weaker sales and customer traffic. The company’s same-store sales dropped 6.2% in its latest quarter. It also reduced its full-year forecast, projecting a decline of 7% to 8%, compared with its prior estimate of a 2% to 4% decrease, according to The Wall Street Journal.
Sweetgreen said it spent years developing the wraps and tested them in New York, the Midwest and Los Angeles before making them available nationwide. Chief Executive Officer Jonathan Neman said in May that the products were intended to provide more flavor, substance and convenience at a price that could make the chain an everyday dining option.
The company is also working to make the cost of customized salads and bowls clearer before customers finish ordering. McConnell described a scenario in which a customer begins with a $10 bowl and adds ingredients until the final price reaches $22. He said Sweetgreen wants to make that pricing process more transparent.
According to McConnell, customers can get a protein, two bases and four toppings for about $13, with dressing and bread included. The report did not specify whether that price applies uniformly across locations or whether it could vary by market.
Service speed is another part of the effort. Some busy restaurants have assigned employees specifically to assemble wraps during peak periods, The Wall Street Journal reported. McConnell said the company wants customers to be able to enter a restaurant and leave with a salad in less than five minutes, while acknowledging that some diners consider service slow.
The company’s pricing push comes amid wider consumer cost pressures. The source report cited September inflation figures from the Bureau of Labor Statistics: the Consumer Price Index rose 0.6% from the previous month and 3.7% from a year earlier, with higher energy costs contributing to the increase.
Fox Business said it contacted Sweetgreen for comment. The supplied report did not include a response from the company beyond the statements and information it attributed to Sweetgreen and its executives.
