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Why Sweetgreen Struggles to Earn a Profit

Fancy salads, high rents: Why growth hasn’t led to profits.

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  • Chapter 2 Economics
  • Chapter 6 Entrepreneurship
  • Chapter 9 Production & Operations Management
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The fast-casual dining chain Sweetgreen has developed a nationwide following of fans by selling fresh salads that start at $15 apiece. Although the company certainly charges a hefty amount for one of its signature bowls, Sweetgreen still struggles to make a profit due to high labor costs and expensive ingredients. This video examines the chain’s money troubles while also looking at its plans for profitability, including automation and expanding outside of major cities.

Questions:

  1. What are some reasons why Sweetgreen struggles to earn a profit?
  2. Do you think Sweetgreen’s plans to implement automation will help it earn more money in the future? Why or why not?
Author: NickelsMcHughMcHugh