Two-thirds of Sweetgreen’s digital sales last year came from its app and website and other manual options. “Digital customers are our most habitual users and we believe this new format will provide us with more options to connect people to real food,” Jammet said earlier of the sweetlane concept.
In that venue, in addition to tapping orders in advance through Sweetgreen’s digital platforms, guests can place pickup orders inside the restaurant.
Furthering Jammet’s point, Sweetgreen said in March when it gets customers into digital channels, historically, they come in at least 1.5 times more often. And they spend 20 percent more. Once they evolve into a “two-channel customer,” they show up 2.5 times more.
Sweetgreen’s total revenue in 2021 was $340 million—a record high for the company, and a 54 percent jump, year-over-year. Average-unit volumes climbed from $2.2 to $2.6 million.
Q1 2022 revenue was $102.6 million versus $61.4 million in the year-ago stretch. Same-store sales climbed 35 percent over a drop of 26 percent. The comp consisted of a 25 percent increase from transactions and a benefit from menu price increases of 10 percent subsequent to 2021's quarter.
The company’s average-unit volumes also recovered to $2.8 million from $2.1 million in Q1 2020. Sweetgreen swung a net loss of 49.2 million compared to a net loss of $30 million last year. Adjusted EBITDA was negative $16.5 million versus negative $21 million in that same lap.
Q1 restaurant-level profit was $13.3 million and restaurant-level profit margin was 13 percent. Those results were $2.1 million and 3 percent in the year-ago period, respectively.
Sweetgreen’s increase of roughly 950 basis, year-over-year, primarily credited to greater sales leverage (COVID recovery) as well as 10 percent of pricing and the termination of its loyalty program.
The company said gains were offset “by increases in the prevailing wage rates across the country and an increase in bonus-related expenses as we continued our focus on employee retention and continued to work to navigate the increasingly tight labor market that is impacting the restaurant industry.”
A diversified suite of options will key the growth chart as Sweetgreen targets at least 35 openings this year, including two to three fresh markets. The long-run goal is to double in the next three to five years and reach 1,000 units by decade’s close.
Sweetgreen ended 201 with 150 locations.
“We remain well-positioned to achieve our vision of being as ubiquitous as traditional fast food, but with the transparency and quality that consumers increasingly expect,” co-founder and CEO Jonathan Neman said.
"The path to recovery remains neither linear nor consistent; however, the strength of our brand, product, digital platform, and team gives us confidence in reaching our goal of 1,000 restaurants across the United States by the end of the decade,” added CFO Mitch Reback. “We are well-equipped and keenly focused on building a sustainable business and our path to profitability."