Sweetgreen Boosts Protein Portions to Revive Flagging Sales and Traffic

Sweetgreen CEO Jonathan Neman is overhauling the chain’s menu to address declining sales and shifting consumer habits, particularly in the corporate market. The fast-casual salad brand has responded to waning demand for its $16 desk salads by increasing protein portions by 25%, upgrading recipes for chicken and salmon, and offering member discounts as low as $13 [1]. These changes are part of a broader strategy to meet evolving expectations for value and satiety in a value-conscious dining environment [1].

The menu shift comes amid troubling financial results. Same-store sales dropped as much as 7.6% in the summer, with customer traffic falling by 10.1%. Sweetgreen has revised its 2025 same-store sales outlook to a decline of 4%-6%, reversing earlier expectations of stable performance [1]. The company reported total revenue of $185.6 million for the quarter ended June 29, a minimal 0.5% increase from the previous year, and significantly below the Wall Street forecast of $191.73 million [1]. Restaurant-level profit margin also dipped to 18.9%, down from 22.5% a year earlier, due in part to rising food and labor costs [1].

The decline is attributed to a combination of structural and economic factors. Hybrid work schedules have reduced traditional office lunch traffic, which was once a core driver of Sweetgreen’s urban business. Meanwhile, affluent customers—previously willing to pay a premium for delivery salads—are now more price-sensitive amid inflation and economic uncertainty [1]. Urban locations, once bustling with lunchtime demand, now rely more on local traffic and dinner orders, which require heartier fare than the chain’s signature greens [1].

To address these challenges, Sweetgreen has introduced “protein plates,” offering larger servings of steak, chicken, or tofu over grains. The strategy aims to attract dinner traffic and satisfy consumers’ demand for more substantial meals. Initial feedback has been encouraging: Guest satisfaction improved by 30% following the July rollout of larger chicken and tofu portions [1]. In Boston, where steak protein plates were first tested, the item accounted for nearly 20% of dinner orders [1]. The steak is sourced from grass-fed, regenerative farms to maintain the brand’s sustainability commitments [1].

Despite these efforts, operational issues persist. Only one-third of Sweetgreen locations currently meet speed and consistency standards, prompting the company to hire former Chipotle executive Jason Cochran as COO. Sweetgreen is also closing two underperforming units and recording a $5.3 million impairment charge [1].

Looking ahead, Sweetgreen remains optimistic. The company plans to open at least 40 new restaurants this year, many featuring automation and lower labor costs. Neman and CFO Mitch Reback noted early signs of progress, including steady improvements in guest frequency and positive reception to seasonal menu items [1]. However, the broader market remains skeptical about the viability of premium salad chains in today’s dining landscape, especially as hybrid work models continue to erode the traditional desk-lunch demographic [1].

Sources:

[1] Sweetgreen’s CEO is beefing up protein portion sizes because corporate America is demanding more from $16 sad desk salads https://fortune.com/2025/08/10/sweetgreen-beefing-up-protein-portion-sizes-sad-desk-salads-earnings-jonathan-neman/