1851

Sweetgreen is the latest foodservice chain to announce it let go of staff,&nbsp;<a href="https://www.cnbc.com/2022/08/09/sweetgreen-stock-plummets-after-salad-chain-cuts-forecast-announces-layoffs.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=sweetgreen-announces-layoffs-and-growth-in-the-suburbs-2719361" target="_blank" rel="nofollow">CNBC</a> reported.&nbsp;The business laid off 5% of its support center workforce and downsized to a smaller office building to lower operating expenses.&nbsp;“We made these changes to lower operating expenses and protect our path to profitability in this uncertain environment,”&nbsp;CFO Mitch Reback said during an earnings call. Reback added that these employee reductions are expected to result in a $4 million annual savings from general and administrative expenses.It is anticipated that severance packages and related benefits will cost the company between $500,000 to $800,000, while the office change will cost around $8.4 million to $9.9 million. Both moves are likely to impact third-quarter results.During the earnings call, executives said the slowdown could be attributed to multiple factors, such as “unprecedented levels of summer travel,” a slow return to the office, as well as another wave of COVID cases.The company also reported that the reluctance to return to metropolitan cities influenced these decisions, adding that their suburban stores are doing better than their city locations.&nbsp;This shift in focus toward suburban locations is not limited to Sweetgreen. Restaurant chains and franchises have been seeing the benefit of placing emphasis outside of metropolitan areas for several years.&nbsp;The pandemic highlighted the value of these locations as people fled major cities, such as New York. And with many workers choosing not to return to their prospective cities, there was an opportunity for other franchises to recruit new talent and customer bases. For example, Just Salad, another&nbsp;popular fast-casual chain popular in cities, started focusing growth efforts on suburban markets in 2021.&nbsp;Even before the pandemic, Sweetgreen was transitioning out of the city and into suburban neighborhoods, though it still has a large footprint in those regions,&nbsp;<a href="https://www.eatthis.com/news-sweetgreen-laying-off-employees-slowing-sales/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=sweetgreen-announces-layoffs-and-growth-in-the-suburbs-2719361" target="_blank" rel="nofollow">Eat This, Not That!</a> reported.&nbsp;“At the end of 2019, our footprint was 65% urban, 35% suburban," Reback said on the earnings call. “Today, it's 50/50. At the end of 2019, our urban restaurants had an AUV of $3.1 million, and our suburban restaurants had an AUV of $2.7 million. At the end of the second quarter of 2022, AUVs flipped [and] urban SUVs are now $2.7 million, and suburban EVs are $3.1 million.”

Sweetgreen Announces Layoffs and Growth in the Suburbs

1851 Franchise

The salad chain laid off 5% of its support center staff.

sweetgreen-announces-layoffs-and-growth-in-the-suburbs

BooXkeeping

image of booxkeeping franchise graduation present

Why a BooXkeeping Franchise Might Be the Smartest Graduation Gift You Can Give

booxkeeping-franchise-graduation-gift

KidStrong Franchising, LLC

image of kidstrong franchisees NFL player Shaun Wade and his former Team USA Heptathlete wife Jordan

Why This Athlete Couple Chose To Open a KidStrong Franchise

nfl-player-shaun-wade-kidstrong-franchise-georgia

HomeTeam Inspection Service

Team of home inspectors exiting branded HomeTeam Inspection Service vehicle

HomeTeam Inspection Service Offers Franchise Opportunity With No Experience Required

hometeam-franchise-training

Comfort Keepers

image of comfort keepers employees franchise

Comfort Keepers® Partners With PocketRN to Enhance Dementia Care Nationwide

comfort-keepers-pocketrn-dementia-care-partnership

Right at Home

Right at Home Franchise - Q3 2025 Momentum - 1851 Franchise

Right at Home Continues Momentum as It Closes Out the Third Quarter and Looks Ahead To Hit Its Annual Signings and Openings Goal by the End of the Year

right-at-home-franchise-q3-2025

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Photo of Papa Murphy's Take 'N' Bake Pizza franchisee Lily Wilford

Entrepreneur: This 18-Year-Old Saves Babysitting Money for College — Then Decided to Buy a Business Instead

18-year-old-franchise-owner-lily-wilford

Amazon outage, AWS outage, Amazon AWS logo

The Day the Cloud Stalled: How Amazon's Outage Impacted Franchise Economy

amazon-aws-outage-franchise-impact-travel-dining-failure

Thursday 1851 Franchise Agg - NASAA’s Noncompete Push

NASAA’s Noncompete Push Puts Franchise Growth on Uncertain Ground

franchise-noncompete-nasaa-advisory-reasonableness-standard

How a Steady Economy Could Help Franchisors Plan Their Next Move

how-a-steady-economy-could-help-franchisors-plan-their-next-move

Bed Bath & Beyond - Franchise Expansion - Retail Strategy - 1851 Franchise

Bed Bath & Beyond Launches Franchise Model as Part of Comeback Strategy

bed-bath-beyond-franchise-expansion-retail-strategy

image of franchise deep dive from 1851 franchise on doody calls franchise authority brands

DoodyCalls Franchise Costs, Fees, Profit and Data for 2025

doodycalls-franchise-deep-dive

image of mellow mushroom deep dive into financials article from 1851 franchise

Mellow Mushroom Franchise Costs, Fees, Profit and Data for 2025

mellow-mushroom-franchise-deep-dive

Photo of Humbug Holiday Lighting team members wearing festive sweaters, beanies, smiling at camera

Happinest Brands Turns the ‘Off-Season’ Into a Bright Spot for Franchisees

happinest-holiday-lighting-franchise-support

Scenthound Franchise Costs, Fees, Profit and Data for 2025

scenthound-franchise-costs-fees-profit-and-data

image of jerome hanway from right at home Las Cruces, New Mexico 1851 franchise franchisee spotlight

Jerome Hanway Is Building His Right at Home Franchise Around His Mission To Serve

right-at-home-franchise-las-cruces-jerome-hanway

A Practical Playbook: Who To Call First When Franchising Your Business

franchising-your-business-who-to-call-first

NJCAR v. Ford - New Jersey Supreme Court Limits Standing Under Franchise Practices Act

New Jersey Supreme Court Limits Standing Under Franchise Practices Act

new-jersey-franchise-practices-act-njcar-v-ford

image of michael panos and michel panos, owners of mellow mushroom in Atlanta

The Panos Family’s Role in Preserving Mellow Mushroom’s Character — and Expanding in Atlanta

mellow-mushroom-franchise-panos-restaurant-group-metro-atlanta

graphic image of an 1851 franchisee spotlight brayden and johnny steven of teriyaki madness

Sweetgreen Announces Layoffs and Growth in the Suburbs

MORE STORIES LIKE THIS