Sweetgreen Inc. is looking at options to broaden its menu and appeal to a wider customer base with such items as air-fried fries, wrap sandwiches, and more desserts, executives said on an earnings call Thursday.
The Los Angeles-based Sweetgreen, which released earnings for the third quarter ended Sept. 28, also discussed its robotic Infinite Kitchen rollout and plans for artificial-intelligence-assisted scheduling for team members.
Company founder and CEO Jonathan Neman said, “We see a big opportunity — call it outside the bowl — around things like sides, beverages, and desserts.
“One thing we're testing in our Southern California markets today is something we called Ripple Fries,” Neman said. “They're seed-oil-free and air-fried. They're absolutely delicious. and so that's a test we're working on now.”
Neman said the Ripple Fries might be rolled out next year. This year, the company expanded its protein offerings with Carmelized Garlic Steak and other protein plates.
“We also have a few other things that we are working on,” Neman said, such as handheld wrap sandwiches and desserts. “No promise on the timing, but we there's a real opportunity.”
Sweetgreen introduced its fall harvest menu in mid-September inspired by seasonal ingredients and flavors.
“We are featuring maple-glazed brussels sprouts, which are air-fried for a caramelized char then glazed with house made maple sauce,” Neman said. “Together these menu items are driving strong sales during dinner and weekends with dinner holding a 40% mix and both dinner and weekends show higher check averages compared to weekday lunch.”
Mitch Reback, Sweetgreen chief financial officer, who earlier this year said the automated Infinite Kitchen model would be used for 50% of new stores, said high-volume stores at Willis Tower in Chicago and Wall Street in New York had been retrofitted with the robotic model.
“Our 2025 new unit pipeline will consist of at least 40 new restaurants, approximately half of which will be powered by the Infinite Kitchen,” Reback said on the call. Ten units now have the Infinite Kitchen, which adds incremental costs of between $450,000 and $550,000, he said.
Neman said Sweetgreen is also piloting an artificial-intelligence-enabled scheduling system, which rolled out to 70 restaurants this week in six markets.
“As part of our commitment to continuously improve the team member experience, we're rolling out an AI-driven scheduling system,” he said. “With this tool, team members can take ownership of their schedules through an app, all while aligning staffing needs with guest demand by harnessing machine learning and reducing the administrative load.”
The scheduling tool is expected to be deployed systemwide in the second quarter of next year, Neman said.
For the third quarter ended Sept. 29, Sweetgreen’s net loss was $20.8 million, or 18 cents a share, narrowed from $26.1 million, or 22 cents share, in the year-ago period. Revenues grew to $173.4 million, up 13% from $153.4 million in the third quarter a year ago.
Same-store sales in the third quarter were up 6%, compared to 4% in the same period a year ago.
Sweetgreen, founded in 2007, has more than 235 locations across the United States.
Contact Ron Ruggless at [email protected]
Follow him on X/Twitter: @RonRuggless
