Sweetgreen Struggles To Keep Bowl Market Going As Chain Books First Same Store Sales Decline Since IPO

They turned chopped greens into a multi-billion-dollar business — but SweetgreenSG

is losing its bite. A beneficiary of the Bowl Market, the health-focused food chain is seeing its once-magnificent growth fade as more affluent consumers turn away amid a slowdown in the economy and rising concerns about quality.

• The chain posted a 3.1% decline in same-store sales, down significantly from the 5% rise it booked in the same period last year — a first since its Nov. 2021 IPO.
• Making matters worse, Sweetgreen’s $28.5M operating loss wiped out gains from higher restaurant-level profits, even as the chain opened five new locations.

Sign of the times or sign of decline? Pundits have been quick to chalk up Sweetgreen’s sales dip to the wildly uncertain consumer environment. However, online forums are pointing to a deterioration of quality and portion sizes, which have soured one-time supporters. A scan of Google Reviews across Sweetgreen’s 251 locations supports this view, with ratings waning in the 3s and low 4s. To turn things around, the chain may not be able to hide behind its expensive salad-making robots — it’ll need to address the core causes of customer discontent.