Source: Fortune
Summary
Sweetgreen, a salad chain, faced a cyclospora outbreak linked to iceberg lettuce from Mexico, even though it doesn’t use the vegetable or source from the country. The company cut its full-year outlook in August, projecting a 7% to 8% decline in same-store sales. The CDC declared the outbreak over in September. Despite the crisis, Sweetgreen’s stock rose 28% year-to-date as CEO Jonathan Neman led a turnaround. Analysts noted a recovery, with foot traffic up 5.6% year over year. The company also named cookbook author Molly Baz as its first chef-in-residence.
Our Reading
The numbers tell one story.
Sweetgreen cut its outlook after a lettuce-related outbreak.
The company’s stock still rose despite the crisis.
Foot traffic recovered, but rivals like Chopt saw declines.
The brand is repositioning itself with new menu items and collaborations.
It’s not just a salad chain anymore.
Author: Evan Null
Never waste a crisis
Sweetgreen’s founders have faced setbacks before, like a break-in that destroyed their early recipe files. Nic Jammet, cofounder, said the experience taught them to “never waste a crisis.” The company has since focused on long-term goals and customer engagement. Jammet advises other restaurateurs to stay close to their customers and avoid getting distracted by negative narratives. The company is also working to redefine its brand beyond just being a salad chain.
Despite the outbreak, Sweetgreen has made efforts to rebuild its image. The company is pushing into wraps and collaborating with chefs and brands. Jammet said the response to these changes has been positive. He emphasized that Sweetgreen is not just a “slop bowl” but a place for high-quality, fresh food. The company is also leveraging social media and customer challenges to drive engagement and brand loyalty.
One example is the “Sweetgreen Challenge,” where a customer ate only from the chain for 25 days and lost nine pounds. The challenge was turned into a marketing campaign, encouraging others to try a 30-day version. Jammet said the goal was to show the impact of daily food choices. The campaign helped position Sweetgreen as a health-focused brand, even as it expanded its menu offerings.
Jammet also emphasized the importance of quality ingredients and fresh preparation. He said the company’s approach is to create food that people can eat every day. This philosophy has helped Sweetgreen differentiate itself in a competitive market. The company is now focusing on innovation, including new menu items and partnerships, to attract and retain customers.
Despite the challenges, Sweetgreen remains optimistic about its future. The company has shown resilience, adapting to changing consumer preferences and market conditions. With a new chef-in-residence and a focus on customer engagement, Sweetgreen is positioning itself for continued growth and brand relevance.
Growing up at La Caravelle
Nic Jammet grew up in his parents’ restaurant, La Caravelle, a fine dining spot in Manhattan. His parents ran the place with a strong work ethic, often working long hours and maintaining high standards. Jammet recalled how his family would eat at the restaurant as kids, even though it was a fine dining establishment. The experience shaped his understanding of hospitality and quality service.
La Caravelle was known for its high-end cuisine and had a reputation for excellence. It was a favorite of the Kennedy family and was nominated for a James Beard award before closing in 2004. Jammet said the restaurant was a big part of his childhood and taught him the importance of dedication and attention to detail. His father would go to the market early each week to select the best ingredients, setting a standard for quality that Jammet would carry into his own business.
Despite the closure, the values and lessons from La Caravelle stayed with Jammet. He said the fine dining and fast casual industries share similar principles: quality food and a positive customer experience. This philosophy has guided Sweetgreen’s approach to its menu and operations. Jammet believes that the key to success is to create a place where people feel good about their food and the experience.
Jammet also emphasized the importance of family in his business. He and his brothers grew up in the restaurant, learning the ropes from a young age. This early exposure helped shape his perspective on hospitality and the restaurant industry. The experience also taught him the value of hard work and the importance of maintaining high standards.
Today, Jammet continues to apply the lessons from La Caravelle to Sweetgreen. He believes that the restaurant industry is about more than just food—it’s about creating a meaningful experience for customers. This philosophy has helped Sweetgreen build a loyal customer base and maintain a strong brand identity.
The Sweetgreen Challenge
Sweetgreen’s commitment to fresh, healthy food has been a core part of its brand since the beginning. Nic Jammet said the company was inspired by the growing interest in nutrition and food quality during the late 2000s. Books by Michael Pollan and the work of Marion Nestle influenced the company’s early vision. The rise of Michelle Obama’s focus on healthy eating also played a role in shaping Sweetgreen’s mission.
The “Sweetgreen Challenge” was a creative way to highlight the benefits of the company’s food. Tim Donohue, a copywriter, ate only from Sweetgreen’s menu for 25 days and lost nine pounds. His experience was turned into a marketing campaign, encouraging others to try a 30-day version. Jammet said the challenge was meant to show the impact of daily food choices and how they can improve well-being.
Donohue said the hardest part of the challenge was the logistics, not the food. He had to plan his meals carefully and sometimes dealt with unexpected issues, like ordering from the wrong store. Despite the challenges, he said the experience was transformative. He described it as a way to “travel without going anywhere,” showing how food choices can change one’s lifestyle.
Jammet himself has been following a version of the challenge for 20 years. He said eating Sweetgreen regularly helped him achieve his fitness goals. The campaign not only promoted the company’s food but also reinforced its message of health and wellness. It also helped build a sense of community among customers who participated in the challenge.
Although Sweetgreen didn’t pay Donohue for his video, it gave him a generous amount of reward points after the campaign launched. Donohue still eats at Sweetgreen three times a week, showing the lasting impact of the challenge. The campaign helped position Sweetgreen as a brand that not only offers healthy food but also encourages a healthier lifestyle.
Rebranding and Expansion
Sweetgreen has been working to rebrand itself beyond just being a salad chain. Nic Jammet said the company is not a “slop bowl” but a place for high-quality, fresh food. This repositioning has involved expanding the menu to include items like wraps and other options. The goal is to appeal to a broader audience and show that the company offers more than just salads.
The company has also been collaborating with chefs and brands to create new menu items. One of the biggest collaborations this year was with cookbook author Molly Baz, who became Sweetgreen’s first chef-in-residence. Jammet said these collaborations bring back the “drumbeat” that helped build the brand. The new menu items and partnerships are part of a broader strategy to attract and retain customers.
Jammet emphasized that Sweetgreen’s menu is designed to be something people can eat every day. He said the food isn’t tied to a specific flavor or cuisine, making it versatile and appealing to a wide range of customers. This approach has helped the company differentiate itself in a competitive market.
Despite the challenges, Sweetgreen has shown resilience. The company has adapted to changing consumer preferences and market conditions. With a focus on innovation and customer engagement, Sweetgreen is positioning itself for continued growth and brand relevance. The company’s efforts to rebrand and expand its offerings are part of a larger strategy to remain a leader in the fast-casual dining space.
The company’s recent performance, including a stock increase and improved foot traffic, shows that these efforts are paying off. Sweetgreen is not just surviving—it’s evolving and adapting to meet the needs of its customers. This approach has helped the company maintain its position in a competitive market and continue to grow its brand.
