Why Sweetgreen is ditching the fries customers loved

Fast Company

5 days ago

NEWS
A botched rewards program rollout is just one ingredient in Sweetgreen's sales slump.
[Photo: Angus Mordant/Bloomberg via Getty Images]
BY
Sweetgreen is about to make some major changes amid slumping sales. Sadly, that includes ditching its newly introduced, yet mega popular menu item: Ripple Fries.
Sweetgreen's shares dropped more than 25% Friday, after the chain slashed its full-year outlook for the second time in recent months. Back in February, the brand predicted revenue of $760 million to $780 million, before cutting projections to between $740 million and $760 million. Now, Sweetgreen says it expects revenue of between $700 million and $715 million for the 2025 calendar year.
On an earnings call Thursday, CEO Jonathan Neman expressed dissatisfaction with the numbers and laid out what the recent challenges have been for the brand, citing the 'convergence of several external headwinds and internal actions'. In addition to more cautious spending by consumers, Neman said that last year's steak launch made for a 'tough comparison year.'
The CEO also noted that there have been issues with the company's points-based loyalty program, which replaced its tiered subscription system in April. Neman said that while the brand saw revenue falloff as a result of the transition, he believes the impact of the loyalty program is only temporary.
Still, in light of the lower than expected sales, Neman said Sweetgreen will make a number of changes such as increasing portions, adjusting recipes, additional seasonal menus, and discounted items. Specifically, he mentioned a 'loyalty exclusive $13 menu bowl'. Most bowls run about $16 to $20.
Farewell, fries
While customers may not complain about heftier portions, or discounted bowls, one change may not be as well received. On the call, Neman said the chain needs to focus on its 'core' menu items, meaning its salads. With that in mind, he announced Sweetgreen will no longer sell Ripple Fries, in spite of the fact that they were a popular menu item that 'consumers love'.
Earlier this year, the CEO told Fast Company about the brand's excitement over adding Ripple Fries to the menu. 'It's the first time we have a truly signature side,' Neman said. 'The other sides were fine, but now we have this staple. And they're really addictive.' Not only were the fries tasty, but they aimed to be a healthier fry, too, as they were made without seed oil and used healthier alternatives.
In 2023, the brand announced it would reduce its seed oil use overall. And this year, began promoting its seed oil free menu items. In January, just before Trump took office, Neman posted a photo of himself in a 'Make America Healthy Again' hat, which many interpreted as a political statement referring to RFK's agenda. 'We made these hats in 2016. Glad the long overdue discussion on food and health has gone mainstream,' he wrote. 'We are on a mission to make America Healthy by connecting communities to Real Food.'
While Ripple Fries were both a hit and a healthier option for those looking for a crispy side, they're now a thing of the past, as Sweetgreen will focus on better quality salads and a better customer experience overall. According to the CEO, there is plenty of work to be done.
'The fundamentals like sourcing, cooking, and throughput are there, but they're not always delivered with the consistency our guests expect or deserve, Neman said. 'Today, about one third of our restaurants are consistently operating at or above standard, while the remaining two thirds represent a meaningful opportunity for improvement.'
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ABOUT THE AUTHOR
Sarah Bregel is a writer, editor, and single mom living in Baltimore. She's contributed to New York Magazine, The Washington Post, Vice, InStyle, Slate, Parents, and others. More