Salad Chain
To Lay Off 5% of Workforce


The move toward hybrid or entirely remote employment has hurt urban restaurants that relied on office employees as clients.

Fast-food companies that dominated city centres are facing reduced sales. Sweetgreen, a popular lunch spot, will lay off workers due to decreasing sales.

Los Angeles-based chain's "erratic urban rebound" following epidemic slowed sales growth. As a result, the firm will lay off 5% of its workers to return to profitability.

Sweetgreen's finest season is summer, but sales didn't rise this year. The business said it initially saw the sales dip around Memorial Day, prompting them to decrease forecasts.

As part of its new strategy, Sweetgreen will relocate its support centre. The business predicts same-store sales of 13% to 19% this year, which is lower than 26%.

Even before the epidemic, fast-casual was expanding into suburbs. It has a significant presence in such locations but is moving away from high-density areas.

At the end of 2019, 65% of our presence was urban. It's 50/50. End of 2019, our urban restaurants had an AUV of $3.1 million and our suburban eateries $2.7 million.

At the conclusion of the second quarter of 2022, AUVs were $2.7 million and urban SUVs were $3.1 million.

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