Sweetgreen Identity Crisis Update: From Permissible Indulgence to Protein Panic
Sweetgreen’s Identity Crisis: From Permissible Indulgence to Protein Panic
In March, I predicted that Sweetgreen’s Ripple Fries would hit a ceiling: they were designed for LA virality, not national scalability. I argued that a salad chain built on fast, clean assembly has no business turning into a part-time fry shop.
Status: Confirmed. As of August 2025, Sweetgreen officially discontinued Ripple Fries to streamline operations.
The financial damage is now visible in the Q3 2025 numbers:
Same-Store Sales: -9.5% (This is the key "growth stock" killer).
Traffic: -11.7% (Customers aren't just spending less; they stopped coming).
Net Loss: Widened to $36.1 million.
Stock: Down ~80% YTD, trading in the $5–$6 range.
The "permissible indulgence" strategy didn't just fail to add customers; it distracted from the core value proposition while prices crept up.
The numbers explain the problem. Their next moves explain the panic: a protein overload, a robotics sell-off, and a new Chipotle-style leadership regime. Let’s break it down.
1.) The Overcorrection: From Fries to 106 Grams of Protein
Two days ago, Sweetgreen launched the Power Max Protein Bowl: 106 grams of protein, 1,120 calories, $22.45. A Ripple Fry overcorrection targeted at gym bros.
But gym bros don’t buy $23 bowls. They buy:
Whey: $0.06/gram
Chicken Breast: $0.05/gram
Sweetgreen: ~$0.21/gram
That’s a 300% markup. Hyper-optimized gym goers know these numbers by heart. They meal prep chicken breast for $4. They buy whey protein for $1.60 a scoop. They might buy this bowl once for novelty, but they know they can hit 106g protein for about $8 at home.
Sweetgreen, you're not fixing the problem. You're overcomplicating the core product again. Ripple Fries complicated operations to chase a coastal "permissible indulgence" trend. The Power Max Bowl complicates operations (four servings of chicken per bowl, supply chain strain) to chase a notoriously trend-obsessed and brand-agnostic demographic: gym bros.
2.) Selling the "Secret Sauce"
The "Tech Company" facade is officially gone. In November, Sweetgreen sold Spyce (its robotics division) to Wonder Group for $186.4 million.
The Deal: They got $100M cash to survive, but sold the IP and team.
The Reality: They now license the tech they used to own.
My take: Smart for liquidity, but it kills the "tech disruptor" valuation.
3.) Moving Forward: The Chipotle-fication Era
So, how do they fix this? The Board knows "growth at all costs" is over. They hired operators:
Jamie McConnell (CFO, ex-Chipotle)
Jason Cochran (COO, ex-Chipotle)
This brings focus. Expect less experimentation, more efficiency. Fewer $22 bowls, more reliable basics.
I eat at Sweetgreen nearly every day. I don't care if they're cool. I care if they survive.
