r-for-you QSR chain has continued to innovate, whether through its automated salad-prep system, Infinite Kitchen, which it launched in 2023, or new menu items, such as the much-debated Ripple fries, which debuted in March. However, the Los Angeles-based business now faces a series of challenges, including tariff-related costs and a weakened consumer market in which expendable purchases like takeout are among the first to go. On August 8, Sweetgreen reported that it expects revenue for 2025 to land between $700 million and $715 million, down from its previous forecast of $740 million to $760 million and its February outlook of $760 million to $780 million. The company also reported a 7.6 per cent slide in same-store sales, which reflects a 10.1 per cent decline in traffic and menu mix. Additionally, the average unit volume ticked down to $2.8 million, compared with $2.9 million a year ago, and restaurant-level margins declined to 18.9 per cent, compared with last year’s 22.5 per cent. Sweetgreen, therefore, has already been working for several months on a strategy to reinvigorate its brand. In September 2024, it hired former Starbucks executive Chris Tarrant as chief development officerto lead its bricks-and-mortar expansion and revive its place at the top of the QSR sector. “Our mission remains rooted in bringing real food to as many people and communities as we can reach. That purpose has always set Sweetgreen apart, and we’re doubling down on it,” Tarrant told Inside Retail. “We’re actively investing in our legacy markets, where our brand has deep roots and strong momentum, while also growing in newer markets, where we see incredible potential. The strength of our reputation has created a halo effect, one that’s helping fuel excitement and familiarity as we expand.” What’s in store for Sweetgreen 2.0? One major goal the salad-centered QSR chain aims to hit in 2025 is to open 40 new locations by the end of the year. As of June, Sweetgreen had opened eight new stores in new markets, including Sacramento, Phoenix, Cincinnati and northwest Arkansas. Tarrant stated that the company is “on track” to meet its goal, with two key relocations set to go live in the next few months and two new drive-thru locations opening this year. The company’s first drive-thru, dubbed Sweetlane, opened in November 2022. Even though Sweetgreen initially grew in metropolitan cities like Miami, New York City and Los Angeles, the brand has been making a concerted effort to balance its presence in suburban locations. As reported by location analytics platform Placer.ai, 31.3 per cent of Sweetgreen’s trade areas were made up of consumer segment groups belonging to the suburban periphery. As of the first quarter of 2025, this share had risen sharply, to reach 42.2 per cent. Tarrant sees this as a logical conclusion, given the change in consumer behavior over the last few years. “We’ve always believed in meeting our guests where they are, and their behavior is evolving. While our roots are in urban centers, because of our brand halo and reputation, we’re now seeing demand opportunities in suburban areas,” he said. “That shift is a validation of our broader appeal. Our suburban stores have been incredibly well received, in part because many of our guests already knew us from their city life and are excited to bring that experience home.” Additionally, Tarrant confirmed that of the 40 new locations set to open by year’s end, half will feature the brand’s Infinite Kitchen technology. “We will continue to explore more innovation around our store formats,” Tarrant promised. “This could include pick-up only stores and more Sweetlane opportunities. We are always intensely curious and passionate about continuously improving the customer experience in our stores while providing a convenient interface wherever our customers are.” In March, Sweetgreen made the somewhat controversial move to introduce Ripple Fries to its menu. Marketed as a better-for-you version of the classic French fry – it involves air-fried russet potatoes, prepared without seed oils and seasoned with salt and herbs – food bloggers and retail experts had mixed opinions on the choice to add a ‘junk food’ item to the menu. Sweetgreen co-founder and chief concept officer Nicolas Jammet defended the decision as “a perfect example” of the brand’s mission “to transform fast food so that it’s not just quick and craveable, but also made with high-quality ingredients and thoughtful cooking methods.” In addition to Ripple Fries, Sweetgreen has started offering more protein-forward salads to entice more fitness-focused eaters, such as the limited-edition KBBQ Steak Bowl done in collaboration with Cote, a Michelin-starred Korean steakhouse. “We’re designing for a broader guest, someone who might care about wellness, but also craves flavor, convenience and food that feels exciting and satisfying,” Tarrant said. “We’re redefining what healthy can look and taste like, and making Sweetgreen a place more people want to come back to. “Not only because it’s good for them, but because it’s good, period.” Optimizing intentionally for price-conscious consumers With some economists warning of an impending recession, Sweetgreen’s investment in store expansion and menu changes may not be enough to return the chain to growth if consumers start cutting back on non-essential purchases, like salon visits or takeaway meals. Tarrant told Inside Retail that the brand is figuring out ways to make the price-conscious consumer as comfortable as possible. “Especially in today’s climate, people are making more intentional choices. They want food that feels worth it and fits into their real lives. We’re evolving how we deliver on that while staying true to what we stand for: real food, made fresh and sourced with care,” he explained. “That’s shown up in bigger chicken and tofu portions, more thoughtful pricing and a menu structure that gives people more flexibility without compromising standards. We’ve also created more accessible ways in, through loyalty offers, limited-time pricing and flavor-forward innovation that feels exciting and grounded. “At the end of the day, we want more people to feel like Sweetgreen is for them. That means finding the right balance between staying premium and staying connected and doing it without ever trading down on our values.” This story first appeared in the September 2025 issue of Inside Retail US magazine.