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Sweetgreen Adds Sandwiches to Fight Sales Slump
6 May
Summary
- Sweetgreen is introducing chicken wraps under $15 to boost sales.
- The chain's stock lost 80% of its value last year amid declining sales.
- Wraps are a new addition after a failed attempt with ripple fries.
Sweetgreen is introducing chicken wraps, a new permanent menu item, in an effort to revive sales and combat its perception of being too expensive. The chain's stock value plummeted by 80% last year, and it reported an 11.5% decrease in same-store sales in its most recent quarter. This decline is partly attributed to customers experiencing menu fatigue, as they don't eat bowls or salads daily.
The new wraps, priced between $11 and $15 depending on the city, aim to attract cost-conscious consumers and meet customer demand. This move comes after competitors like Chopt, Just Salad, and Cava have successfully offered wraps for years. Sweetgreen previously attempted a menu expansion with ripple fries, which were eventually removed after a five-month run due to operational challenges.
Testing of the wraps occurred at approximately 70 locations across New York, Los Angeles, and the Midwest, allowing the company to refine ingredient ratios and kitchen workflows. Customer visits to Sweetgreen's nearly 300 locations fell 13% late last year. Analysts suggest that the addition of wraps could attract incremental traffic, especially given the success of fast-casual competitors like Cava, which saw traffic growth in March while Sweetgreen's declined.
