Sweetgreen

Operations

Sweetgreen opens first digital-only pickup location

This unit in Washington, D.C., has no dine-in seating and no front makeline.

Financing

Sweetgreen and Shake Shack still have an urban problem

The Bottom Line: Both companies appear to be getting traction in the suburbs. But they have a big foot in slow-to-recover urban areas.

The salad chain is cutting costs to get to profitability after it warned that sales and profits would be below expectations. The news sent the company’s stock price plunging.

The salad chain, which did away with its loyalty program last year, said it hopes its new Rewards and Challenges program will boost customer frequency.

But the salad chain reported Thursday that its same-store sales climbed 35% during the first quarter and earnings rose 67% over the year before.

The drive-thrus resemble Chipotle Mexican Grill’s successful Chipotlanes and are part of Sweetgreen’s broader suburban strategy.

The fast casual launched the office building drop-off program in 2018 and was up to 1,000 Outposts before the pandemic hit.

The fast-casual salad chain revealed it has about 500 Outpost office drop-off locations, but it’s hoping to grow that business to boost its sales.

The fast-casual, in its first earnings report as a public company, said it expects its first-quarter restaurant-level margins to be between 10% and 11% despite growing sales.

The fast casual’s Sweetpass costs $10 a month and awards users with a $3 credit for each purchase for 30 days.

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