Sweetgreen would really like to shake off its reputation for $16 salads.
The fast-casual chain is bringing some new menu items to play this summer that are positioned for value, aiming for more of a $13 price point that the company hopes will serve as an anchor for the brand’s value perception.
And that value perception is important for the brand, which saw traffic decline 6.5% during the first quarter this year. That decline was blamed in part on the “softening consumer sentiment,” that CFO Mitch Reback said has impacted purchasing behavior and frequency across the industry more broadly.
Sweetgreen, however, has yet to make a profit as a public company, though the chain is steadily growing revenues and narrowing its net loss. The company has expressed optimism about the second half, expecting same-store sales to increase between 1% and 3% for the year, with no plans to increase menu prices.
But a lot is riding on the brand’s new menu news this summer, which Sweetgreen co-founder and Chief Concept Officer Nicolas Jammet said is designed to address brand perceptions, but also to drive traffic.
It’s clear consumers today are craving value in every part of their lives, Jammet said.
“Everything has gotten really expensive,” he said. “So for us, this is about marrying flavor with value.”
Earlier this year, Sweetgreen CEO Jonathan Neman was asked by the New York Times about a $16.28 lunch purchased by the reporter, who posed the question, “How much is too much to pay for a salad?”
Neman responded that it depends, appearing to defend the $16 salad by saying guests should think about the cost to their health, the environment and other factors. “People are paying not only for the quality of the taste in the food, but the fact that it’s made by hand, the fact that we pay our farmers and our team members fairly,” he told the Times.
That response, however, was criticized in other publications as lacking empathy.
Jammet, however, said Sweetgreen (like many chains) has long offered a range of pricing, because what appears affordable to the once-a-month customer might be different from the customer who comes every day.
“Where people see value is all part of the equation,” he said. “[We’re] making sure that, across our menu, we have experiences that fit every customer’s needs and dietary preferences, and entry point preferences.”
Sweetgreen also talks a lot about the quality of ingredients, from the seed-oil-free menu (Sweetgreen primarily uses olive and avocado oil), to responsibly raised proteins.
The Los Angeles-based chain has had a long history with growers across the country—the same farmers that guests might see at their local farmers markets, Jammet noted. Since 2009, the restaurants have included source boards that list ingredients and where they came from, or whether its organic, for example.
“We’re really obsessed with the quality of our food and telling those stories to our customers,” Jammet said.
But this summer, the brand has been working to bring more new menu news with flavors and collaborations.
Earlier this year, for example, Sweetgreen launched a limited-time KBBQ menu featuring dishes created in partnership with the high-end chain COTE Korean Steakhouse. The KBBQ Steak Bowl was priced at $14.95 and Jammet said the dishes have performed very well.
“I think it’s probably one of the—if not the boldest flavors we put on our menu, in terms of the sauces,” he said. “And so, a lot of excitement around that. We’re going to be sad to see it go. But, at the same time, the summer bowls that are coming are really exciting.”
Flavor was also in the spotlight with Sweetgreen’s weekly bowl drops, which were held through June and tied to the chain’s new loyalty program.
Every Monday, a new bowl would be featured for $13 or under for a limited-time offer that week on digital channels. A Green Goddess Chicken Bowl, for example, was a top seller on digital channels the week it was featured.
And though the weekly drops ended in June, one of the bowls will stay on the menu at least through the end of August: the $13 Tamari Crunch Bowl.
Coming soon are new summer seasonal dishes, starting at $12.95 but staying below $15, though the dishes have not yet been publicly revealed.
Part of the challenge for all restaurants is that delivery has become such a factor, and delivery prices are much higher. That $13 Kale Caesar or $14 Harvest Bowl becomes a $20 to $25 item through third-party delivery, Jammet said. “But that’s true across the industry.”
Data from Restaurant Business sister brand Technomic’s new Price Pulse reveals that Sweetgreen has more affordable access points on its menu than, perhaps, it gets credit for.
Prices vary widely by market, but, on average, Sweetgreen’s bowls are more like $14.
While a Kale Caesar with Steak might be $16.92 in California, it’s $14.75 or lower in Georgia, Indiana, Ohio, Wisconsin and Texas. In fact, the average menu price in Texas overall fell under $13 for Sweetgreen, and the Kale Caesar with Steak there is $14.33.
And, even in higher-priced markets of California and New York, customized bowls start at just over $10 (though toppings and dressings can add up). Signature offerings (which is what most guests choose) under $14 include a Super Green Goddess and the Hummus Crunch bowl.
Still, there’s no getting around the fact that Sweetgreen is more expensive than fast-casual peers Chipotle and Cava.
Beef bowls, as a category, at Sweetgreen average $16.84, while the average was $14.81 at Cava and $12.03 at Chipotle.
The more affordable chicken bowl category showed Sweetgreen averaging $14.58 (though the price dropped from 2024 by almost 20 cents), with Cava at $11.55 and Chipotle at $10.69 (also down about 9 cents from the prior year).
Jammet said Sweetgreen has more menu innovation in the works that could open up options on the menu not seen at Chipotle or Cava.
“We are getting really excited about our menu innovation calendar,” he said. “A lot of things we test may never see the light of day. But the ones that perform really well, we get excited about incorporating those into the Sweetgreen experience and value prop.”