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

Fresh Coat

Fresh Coat West Greensboro - Fresh Coat Cares - Red Cross

Fresh Coat Cares Partners With the Red Cross to Refresh Community Conference Space

fresh-coat-cares-partners-with-the-red-cross-to-refresh-community-conference-space

Voodoo Brewing Co.

What’s in the 2025 FDD? A Closer Look for Voodoo Brewing Co. Franchise Buyers

whats-in-the-2025-fdd-a-closer-look-for-voodoo-brewing-co-franchise-buyers

United Water Restoration Group

Master Marketer, Community Builder: How Rodney Washington Turned Local Visibility Into Success

Master Marketer, Community Builder: How Rodney Washington Turned Local Visibility Into Franchise Success

master-marketer-community-builder-how-rodney-washington-turned-local-visibility-into-franchise-success

Preservan

How to Read the Preservan 2025 Franchise Disclosure Document

how-to-read-the-preservan-2025-franchise-disclosure-document

Woodhouse Spas

Why Woodhouse Spas Is in a Class of Its Own: Comparing the Franchise Opportunity Across the Wellness Industry

why-woodhouse-spas-is-in-a-class-of-its-own-comparing-the-franchise-opportunity-across-the-wellness-industry

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

Hardee’s Lawsuit Highlights the Risk of Going Off-Model in Franchising

hardees-franchise-lawsuit-paradigm-investment-group

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Dave’s Hot Chicken Sold to Roark Capital in $1 Billion Deal to Fuel Global Expansion

daves-hot-chicken-sold-to-roark-capital-in-1-billion-deal-to-fuel-global-expansion

Homebuyers Keep Buying — And That’s Good News for Home Service Franchises - 1851 Franchise

Homebuyers Keep Buying — And That’s Good News for Home Service Franchises

homebuyers-keep-buying-and-thats-good-news-for-home-service-franchises

AI Could Push Unemployment to 20% — Fueling a Surge in First-Time Franchise Buyers - 1851 Franchise

AI Could Push Unemployment to 20% — Fueling a Surge in First-Time Franchise Buyers

ai-unemployment-impact-white-collar-job-loss

Floyd’s 99 Barbershop Franchise Costs, Fees, Profit and Data for 2025

floyds-99-barbershop-franchise-deep-dive

From Franchisee to Franchisor: How Howard Picker Is Using His Experience to Drive Sustainable Growth at Floyd’s 99

howard-picker-floyds-99-barbershop-franchise-franchisor-hot-seat

KFC Franchise Costs, Fees, Profit and Data for 2025

kfc-franchise-deep-dive

Unlock Children's Potential: KLA Schools' Franchise Model Centers on Curiosity-Driven Learning

kla-schools-franchise-child-led-learning

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

The Ultimate Guide To Selling Franchises — How To Build Webinars

how-franchisors-can-build-effective-webinars-to-reach-prospective-franchisees

The Ultimate Guide To Selling Franchises: How To Budget Properly

how-franchises-can-budget-their-finances-properly

The Top 20 Handyman Franchises To Invest in for 2025

top-handyman-franchises-to-invest-in

The Ultimate Guide to Selling Franchises: How to Position Your Value Proposition

The Ultimate Guide to Selling Franchises: How to Position Your Value Proposition — Point of Differentiation

how-to-position-your-value-proposition-with-a-point-of-differentiation

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise Built on Heart and Community

paris-baguette-franchise-rockaway-new-jersey-vishal-junjea

Sweetgreen Announces Layoffs and Growth in the Suburbs

MORE STORIES LIKE THIS