11 votes

The economics of $15 salads

4 comments

  1. [2]
    BeanBurrito
    Link
    Can I make Sweet Green Salads cheaper at home? The video above is 1 year old. At the time the author's chosen Sweetgreen salad was $12.52 USD. He made a home version for $5.69 USD. Given all of...

    Can I make Sweet Green Salads cheaper at home?

    The video above is 1 year old. At the time the author's chosen Sweetgreen salad was $12.52 USD. He made a home version for $5.69 USD. Given all of the leftover ingredients it might be worth it to someone who regularly eats there, but the person wanting an occasional salad might just be better off getting it from Sweetgreen.

    8 votes
    1. imperator
      Link Parent
      This is what we've determined. I'm order to have a nice salad with variety you end up wasting a lot.

      This is what we've determined. I'm order to have a nice salad with variety you end up wasting a lot.

      4 votes
  2. ShroudedScribe
    Link
    Interesting. This makes me wonder what another chain makes at the end of the day. Salad and Go is a chain I wasn't aware existed until moving to Arizona. (Looks like it's in a few other states now...

    Interesting. This makes me wonder what another chain makes at the end of the day.

    Salad and Go is a chain I wasn't aware existed until moving to Arizona. (Looks like it's in a few other states now too.) Their menu is incredibly reasonably priced. Salads are less than $8, and breakfast burritos are under $5. Both are very generously sized.

    One way they keep costs down is by keeping "The average Salad and Go store size to approximately 750 square feet" which is tiny - sometimes I wonder how they manage to fit 3+ employees working in that space. Another appears to be how they source ingredients: "The chain operates two food production facilities – one in Arizona and one in Texas – which prepare produce directly from farms and deliver it to stores."

    Quotes sourced from the Wikipedia article.

    I can't justify going to nearly any other restaurant for a salad now.

    8 votes
  3. skybrian
    Link
    From the article: This is more of an unusual way of presenting the company's income statement than the costs of any actual salad, but it still seems like interesting reading.

    From the article:

    By indexing Sweetgreen’s earnings to $15 — roughly the price of a typical salad at the chain — it’s easy to see exactly where the leafy costs are coming from. In fact, for every $15 of revenue in Q1, the company incurred operating expenses of more than $17.50.

    This is more of an unusual way of presenting the company's income statement than the costs of any actual salad, but it still seems like interesting reading.

    Last year, Sweetgreen began deploying robots in the kitchen to mix salads, dispense ingredients, and take orders. Indeed, its first automated location opened in Illinois last May, following rivals in the quick-serve sector that were already tinkering with automated stores. That’s good for the “labor” part of Sweetgreen’s costs on the chart above… and less good for employment prospects. In fact, the two locations that are automated, which Sweetgreen calls its “Infinite Kitchens”, posted profit margins (at the restaurant level) of 28%... some 10% higher than all of the others, per QSR.

    The other innovation is more recent: Sweetgreen has started selling a number of steak-heavy salads. Those have quickly become best-sellers in initial testing, according to the company, although they jar with the company’s very public push to be sustainable.

    3 votes