Sweetgreen has streamlined its operations, reducing staff by 10% in California and discontinuing its Ripple Fries five months post-launch. Despite a positive consumer response, the product was deemed a distraction. The chain's financial report revealed a 7.6% drop in same-store sales, resulting in a net loss of $23.2 million. A turnaround strategy is in place that features larger protein portions, improved product taste, and discounted salads for members, aiming to enhance customer satisfaction and address declining sales.
Sweetgreen CEO Jonathan Neman stated that the decision to cut the $4.95 Ripple Fries was due to its status as a 'distraction' for employees, causing additional cooking complexity.
After testing the removal of Ripple Fries, Sweetgreen saw 'huge improvements in customer satisfaction' as staff could concentrate on core products.
For its second-quarter results, Sweetgreen reported a 7.6% decline in same-store sales and a net loss of $23.2 million, up from $14.5 million last year.
Sweetgreen's turnaround plan includes offering larger sizes of proteins and discounts on salads for members to address disappointing financial performance.
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