Introduction
The popular health-focused restaurant chain Sweetgreen has announced that it will be laying off 5% of its workforce due to the economic impact of the COVID-19 pandemic. This news comes as a shock to many, as Sweetgreen has been a leader in the health food industry for years. In this article, we will discuss the implications of this decision and what it means for the future of Sweetgreen. We will also provide some tips on how to make healthier food choices during this difficult time.
Sweetgreen Will Lay Off 5% of Workforce
Sweetgreen, the popular salad chain, has announced that it will be laying off 5% of its workforce due to the economic impact of the coronavirus pandemic. The company said in a statement that the layoffs are necessary to ensure its long-term financial health.
The company said it will be providing severance packages and other support to those affected by the layoffs. Sweetgreen also said it will be offering job opportunities to those who are laid off, as well as providing career counseling and other resources.
The layoffs come as the restaurant industry has been hit hard by the pandemic. Many restaurants have had to close their doors due to the lack of customers, and those that remain open are struggling to stay afloat.
Sweetgreen is not the only restaurant chain to announce layoffs in recent weeks. Chipotle, Shake Shack, and McDonald’s have all announced layoffs as well.
It remains to be seen how the restaurant industry will recover from the pandemic, but it is clear that many restaurants are struggling to stay afloat. For those affected by the layoffs, it is important to remember that there are still opportunities out there, and to stay positive.
Eat This Not That
If you are looking for ways to save money while still eating healthy, there are plenty of options. Eating at home is one of the best ways to save money, as you can buy in bulk and cook meals in advance. You can also look for deals at your local grocery store, or take advantage of meal delivery services.
If you do decide to eat out, there are still ways to save money. Look for restaurants that offer discounts or specials, or opt for smaller portions. You can also look for restaurants that offer healthy options, such as salads or vegetable-based dishes.
The trend toward hybrid or fully remote work has impacted restaurants in urban areas that relied on office workers as their main customers. Fast-casual chains that have reigned supreme in city centers are now among those seeing lower sales as a result. Sweetgreen, a favorite lunchtime destination, just announced it will be laying off a chunk of its employees because of slower sales.
The Los Angeles-based chain said its “erratic urban recovery” after the pandemic resulted in a sales growth lag. Consequently, the company will be laying off 5% of its workforce in order to get back to profitability.
Summertime is usually Sweetgreen’s best season, but instead, the chain didn’t notice a lift in sales during the season. The company said it was first made aware of the sales slump around Memorial Day, which prompted it to lower its expectations.
As part of its new plan, Sweetgreen said it will also be relocating its support center to a smaller space. The company now expects its same-store sales to land between 13% and 19% this year, which is still lower than the expected 26%.
Even before the pandemic, the fast-casual was transitioning out of the city and into suburban neighborhoods. It still has a heavy footprint in those regions but is working on moving away from high-density areas.
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“At the end of 2019, our footprint was 65% urban, 35% suburban,” CFO Mitch Reback said on an earnings call Tuesday. “Today it’s 50/50. At the end of 2019, our urban restaurants had an AUV (average sales) of $3.1 million and our suburban restaurants had an AUV of $2.7 million. At the end of the second quarter of 2022, AUVs flipped (and) urban SUVs are now $2.7 million and suburban EVs are $3.1 million.”
Sweetgreen operates more than 160 locations in 13 states across the country.
Amber Lake