Sweetgreen Layoffs: Cutting Support Staff, Ripple Fries
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Sweetgreen, the popular eatery known for its $16 salads, is streamlining its staff and its menu after reporting disappointing earnings this week.

As reported by Restaurant Business, Sweetgreen has reduced its workforce by 10% in their California-based support team, impacting both current employees and vacant positions. The company had a workforce of over 6,400 by the end of last year.

Additionally, the chain will stop selling its $4.95 Ripple Fries, which were pitched as a healthier version of French fries, just five months after their launch.

During a Thursday earnings call, Sweetgreen CEO Jonathan Neman mentioned that even though the air-fried ripple fries were well received and enjoyed by customers, they distracted the staff and added unnecessary complexity to meal preparation.

After removing the fries from select menus, Sweetgreen noticed significant improvements in customer satisfaction as employees could better concentrate on the core offerings of the salad chain, according to Neman. The removal of the fries is scheduled for next week.

The decision to trim the workforce and change the menu follows a disappointing financial quarter for Sweetgreen. On Thursday, the chain revealed their second-quarter performance, stating that same-store sales dropped by 7.6%. They experienced a net loss of $23.2 million, compared to $14.5 million during the same timeframe last year, with total revenue seeing a marginal increase of only 0.5% to $185.6 million year-over-year.

What is Sweetgreen’s turnaround plan?

Despite the downturn in their financials, Sweetgreen is implementing a recovery strategy that includes offering larger portions of proteins, enhancing the flavors of its chicken and salmon, and providing discounts on salads to members, lowering prices from $15 to $13.

Mitch Reback, Sweetgreen’s chief financial officer, said on the earnings call that the company was also bringing back seasonal options and chef collaborations, as well as presenting new offerings at “more moderate price points.”

“While we’re not yet where we want to be, we’re confident that these actions position Sweetgreen to emerge stronger, more focused, and better aligned with what our guests and investors expect from us,” Reback said on the call.

According to Reback, the changes have already taken effect and have helped sales in the current quarter.

Sweetgreen’s stock was down over 70% year-to-date at the time of writing. The company’s market value was a little over $1 billion.

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Sweetgreen, the popular eatery known for its $16 salads, is streamlining its staff and its menu after reporting disappointing earnings this week.

According to Restaurant Business, Sweetgreen has made job cuts equating to 10% of open and existing positions on its California-based support team. Sweetgreen employed over 6,400 workers as of the end of last year.

Meanwhile, the chain will also discontinue its $4.95 Ripple Fries, marketed as a healthier alternative to French fries, a mere five months after introducing the option.

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