Sweetgreen, the favored eatery recognized for its $16 salads, is streamlining its workers and its menu after reporting disappointing earnings this week.
In accordance with Restaurant Enterprise, Sweetgreen has made job cuts equating to 10% of open and current positions on its California-based assist crew. Sweetgreen employed over 6,400 staff as of the tip of final yr.
In the meantime, the chain will even discontinue its $4.95 Ripple Fries, marketed as a more healthy different to French fries, a mere 5 months after introducing the choice.
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Sweetgreen CEO Jonathan Neman mentioned on a Thursday earnings name with analysts that whereas shoppers “cherished” the air-fried ripple fries and had a “nice response” to the product, it was a “distraction” to workers and added additional cooking complexity to their day.
Sweetgreen has already examined eradicating the fries from its menu in sure shops, and seen “big enhancements in buyer satisfaction” as workers concentrate on the salad chain’s core merchandise, Neman mentioned on the decision. Sweetgreen will discontinue the merchandise subsequent week, he added.
Sweetgreen made these adjustments to its workers and menu after posting disappointing quarterly earnings. On Thursday, Sweetgreen introduced its second-quarter outcomes, noting that same-store gross sales fell by 7.6%. The chain reported a internet lack of $23.2 million, up from $14.5 million in the identical interval final yr. Complete income elevated by simply 0.5% year-over-year to $185.6 million.
What’s Sweetgreen’s turnaround plan?
Although Sweetgreen could have reported poor monetary outcomes this week, the salad chain has a turnaround plan in place that features providing bigger sizes of proteins, bettering the style of its rooster and salmon, and providing reductions on salads ($13 as an alternative of $15) for members.
Mitch Reback, Sweetgreen’s chief monetary officer, mentioned on the earnings name that the corporate was additionally bringing again seasonal choices and chef collaborations, in addition to presenting new choices at “extra reasonable value factors.”
“Whereas we’re not but the place we need to be, we’re assured that these actions place Sweetgreen to emerge stronger, extra targeted, and higher aligned with what our visitors and traders count on from us,” Reback mentioned on the decision.
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In accordance with Reback, the adjustments have already taken impact and have helped gross sales within the present quarter.
Sweetgreen’s inventory was down over 70% year-to-date on the time of writing. The corporate’s market worth was a bit over $1 billion.
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Sweetgreen, the favored eatery recognized for its $16 salads, is streamlining its workers and its menu after reporting disappointing earnings this week.
In accordance with Restaurant Enterprise, Sweetgreen has made job cuts equating to 10% of open and current positions on its California-based assist crew. Sweetgreen employed over 6,400 staff as of the tip of final yr.
In the meantime, the chain will even discontinue its $4.95 Ripple Fries, marketed as a more healthy different to French fries, a mere 5 months after introducing the choice.
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