Sweetgreen Struggles as Salad Craze Cools

Once a thriving LA-based salad chain, Sweetgreen faces financial woes amid shifting consumer trends.

Apr. 12, 2026 at 8:54pm

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A high-end, minimalist studio still life featuring a collection of polished, geometric objects in muted tones, conceptually representing the corporate challenges facing the Sweetgreen salad chain.As the once-thriving Sweetgreen salad chain grapples with financial troubles, its premium pricing model and wellness-focused offerings face a reckoning in a tightening economy.Los Angeles Today

Sweetgreen, the once-popular salad chain, is facing a decline as the initial excitement over its fresh and healthy offerings fades. The company is grappling with a 9.5% drop in same-store sales, a 10% layoff of its support staff, and a 75% decline in share price over the past 12 months. Experts attribute Sweetgreen's struggles to the premium pricing of its salads, which has become a luxury for many consumers during tough economic times, as well as the changing preferences of younger customers who are rethinking their spending habits.

Why it matters

Sweetgreen's struggles reflect a broader shift in the fast-casual restaurant industry, where chains like Sweetgreen are caught in a competitive crossfire between quick-service brands and casual dining establishments. The rise and fall of customizable lunch bowls, once a popular trend, highlights the evolving landscape as consumers become more discerning about their dining choices.

The details

Sweetgreen's troubles began as the initial excitement over its fresh and fancy salads faded. The brand's promise of a healthier fast-food alternative, even with the allure of salad-making robots, couldn't shield it from the harsh economic climate. As the economy tightened its grip, consumers tightened their wallets, opting for cheaper fast-food options or homemade meals over Sweetgreen's premium offerings. The company's attempt to adapt by increasing portion sizes and introducing new items, like the ill-fated French fries, didn't seem to revive its fortunes.

  • Sweetgreen's share price has declined by 75% over the past 12 months.
  • The company reported a 9.5% drop in same-store sales and a 10% layoff of its support staff.

The players

Sweetgreen

A Los Angeles-based salad chain that once thrived on its promise of a healthier fast-food alternative, but is now facing financial struggles.

Jonathon Neman

The co-founder of Sweetgreen, who acknowledges the challenge of softer sales and reduced spending among younger guests.

Dominick Miserandino

A retail expert who offers a sobering perspective on Sweetgreen's premium pricing becoming a luxury during tough economic times.

Evert Gruyaert

An expert from Deloitte who sheds light on the broader industry shift, where fast-casual restaurants are caught in a competitive crossfire between quick-service brands and casual dining establishments.

Steve Ells

The founder of Chipotle, who has moved on to explore new culinary ventures as the once-popular trend of 'slop bowls' loses its appeal.

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What they’re saying

“Sweetgreen's premium pricing, while justified by its health focus, becomes a luxury when basic needs are at stake. In tough times, wellness takes a backseat for many.”

— Dominick Miserandino, Retail expert

“We're seeing softer sales and reduced spending among our younger guests.”

— Jonathon Neman, Co-founder, Sweetgreen

What’s next

Sweetgreen is introducing a nutrient-rich menu, developed with the wellness company Function, to cater to the growing demand for protein and macronutrients. Co-founder Jonathon Neman remains optimistic that this strategic shift will steer the company back to profitability.

The takeaway

Sweetgreen's struggles reflect the broader challenges facing the fast-casual restaurant industry, where chains must adapt to changing consumer preferences and economic conditions. As the once-popular salad craze cools, Sweetgreen must find new ways to appeal to health-conscious consumers while remaining financially viable.