Sweetgreen Reevaluates Menu Pricing Amid Financial Challenges
Sweetgreen is currently reassessing its menu pricing strategy to enhance value perception amidst financial challenges. Following disappointing financial results in 2025, the fast-casual chain is exploring new pricing structures to make its offerings more accessible to a broader audience.
Financial Overview and Challenges
In a recent announcement, CEO Jonathan Neman revealed that Sweetgreen’s fourth-quarter same-store sales dropped by 11.5%. This decline included a 13.3% reduction in customer traffic, partially countered by a 1.8% price increase on menus. Overall, for the year, same-store sales fell by 7.9%.
The company reported a net loss of $134.1 million, an increase from a loss of $90.4 million the previous year. Despite opening 35 new locations, bringing the total to 281 restaurants, Sweetgreen is planning to close several underperforming outlets as leases expire.
Menu Pricing Reevaluation
Sweetgreen’s reevaluation includes the potential introduction of lower-priced items. Recently, the chain tested a new line of wraps priced under $15, starting from as low as $10.95 in New York City. Neman noted that this initiative has garnered positive feedback and has attracted new customers.
- New wraps launched under $15
- Test locations include New York City
- Positive customer response reported
Seasonal Promotions and Loyalty Initiatives
Sweetgreen has also rolled out seasonal promotions to increase customer engagement. A $10 Tis the Season bowl available for loyalty members became its highest reactivation promotion. Following this, a $10 Chicken Avocado Ranch offer was introduced, along with plans for a monthly exclusive promotion aimed at encouraging repeat visits.
Quality Improvement Initiatives
The chain is committed to enhancing food quality as part of its strategy. Changes include improved marination and cooking methods for salmon and chicken. The addition of golden quinoa has also been made to elevate the taste of their offerings. However, these enhancements have resulted in increased food costs, contributing to a decrease in restaurant-level margins, which fell nearly 700 basis points to 10.4%.
Operational Enhancements and Future Outlook
To address operational efficiency, Sweetgreen has introduced a project to standardize best practices across its restaurants. So far, two-thirds of the locations are classified as “great,” with improved sales and customer return rates. Despite starting 2026 with some challenges due to severe weather in the Northeast, regions like Arizona and California are showing growth.
Looking ahead, Sweetgreen anticipates a decrease in same-store sales of 2% to 4% for the year. The company plans to slow its expansion, aiming to open 15 new locations, with many being the automated Infinite Kitchen format.
