'Sweetgreen is Not a Tech Company': The Company's CEO on How He's Adapting to the Pandemic

Ben Bergman

Ben Bergman is the newsroom's senior finance reporter. Previously he was a senior business reporter and host at KPCC, a senior producer at Gimlet Media, a producer at NPR's Morning Edition, and produced two investigative documentaries for KCET. He has been a frequent on-air contributor to business coverage on NPR and Marketplace and has written for The New York Times and Columbia Journalism Review. Ben was a 2017-2018 Knight-Bagehot Fellow in Economic and Business Journalism at Columbia Business School. In his free time, he enjoys skiing, playing poker, and cheering on The Seattle Seahawks.

'Sweetgreen is Not a Tech Company': The Company's CEO on How He's Adapting to the Pandemic

Jonathan Neman, the 35-year-old co-founder and CEO of Sweetgreen, wants to make one thing clear.

"Sweetgreen is not a tech company," he says. "If you want to make that the headline, you can."

With a lofty $1.6 billion valuation, a sleek headquarters in Culver City down the street from Apple and Amazon, and talk with Kara Swisher about becoming a "food platform," one could be forgiven for thinking Neman has aspirations that go way beyond serving salads, bowls and now plates in 108 stores. These days everyone wants to be a tech company, even if they are just renting office space or selling stationary bikes. Neman certainly has lofty goals – wanting to expand to what he says is "well over" 1,000 locations. But he says he is trying to grow Sweetgreen in the mold of Starbucks, not Snapchat.


"We see ourselves as building the Starbucks of real food," Neman said. "We're actually not even valued like a tech company. If you look at the valuation it's much more like a high-growth food company. We leverage technology to build a better experience and make smarter decisions. And I think it is an accelerant to how we can grow and scale and build our model. However, at the core of what we do, we are a consumer brand."

Sweetgreen's origin story is decidedly techie. Neman hatched the concept with classmates Nicholas Jammet and Nathaniel Ru in a dorm room during their senior year at Georgetown University. Three months after graduation, they opened their first location in Washington D.C. in 2007. In 2016, they relocated to Los Angeles after opening their 39th location.

Last year, Sweetgreen reported $300 million in revenue and $3 million per store, well above Chipotle or Starbucks, which generated $2.2 and $945,270 per location, respectively.

The company would not disclose its numbers for this year but in an April blog post Neman and his co-founders described revenue being "dramatically affected" by the coronavirus. That month, Sweetgreen laid off about 10% of workers at its headquarters and furloughed nearly 2,000 store employees after deciding to return a $10 million PPP loan.

"As soon as we found out that they had run out of money, we decided to give it back, which we think was the right thing to do," Neman said.

Now 75% of the furloughed workers have been brought back and Sweetgreen has reopened all but 11 of locations. All dining rooms in California remain closed though some locations with outdoor seating can accommodate diners. Headquarters is officially open, though it is mostly empty as the company is not requiring anyone to come in for the foreseeable future. Despite some permitting delays because of COVID, Sweetgreen is planning to open 20 new locations this year and considerably more next year. And in late April, it introduced its first new major menu category since adding bowls four years ago – nine different plates, ranging from Hot Honey Chicken to Shroomy Asada, designed to increase dinnertime sales. On Wednesday, Sweetgreen will hold its first-ever $5 Greens Day where it will offer select bowls and salads for well under half the normal price.

Sweetgreen introduced its first new major menu category since adding bowls four years ago – nine different plates, ranging from Hot Honey Chicken to Shroomy Asada.

dot.LA spoke to Neman about how the company is adapting to the COVID era, why he ended an exclusive partnership with UberEats, and when Sweetgreen might IPO.

A lot of your business has been centered around offices. How are you adjusting since people aren't coming into offices?

To your point, we have a very high penetration in some urban areas and those are the ones that have been more severely impacted. Our restaurants that are more suburban-based are actually doing really well. Many of them have fully recovered to pre-COVID levels through just delivery and pickup. So really the impacts we're seeing are primarily only from the true demographic shifts rather than from changing consumer behaviors.

Jonathan Neman hatched the concept of with classmates Nicholas Jammet and Nathaniel Ru in a dorm room during their senior year at Georgetown University.

Does COVID change where you anticipate opening stores in the next few years?

Yeah, a little bit. We were already on a path of expanding beyond our current markets. This year, we have already opened in Denver and Miami and we're opening in Austin. And so we already penetrated a lot of the larger cities, and we're on our way to going into other markets that are more suburban. If you look at the makeup of the United States it's much more suburban than urban. So there was a lot more suburban growth coming, but I think this has accelerated a lot of that as our suburban model has done better. But we have not given up on the cities. We're going to continue to open in New York. We are very confident people will come back to work, although it may be different and we'll be well positioned for it.

Now that we're in a recession do you worry that people will see your menus and think of it as an indulgence to spend $14 on a salad?

Our prices are different by market. Definitely very top of mind for us is affordability. We like to balance all stakeholders when we think about price. So you have to think about how we pay our team members and our farmers.

This is why food is really complicated. I could charge less, and then pay my team members less and pay my farmers less and then I'd get heat for that as well. But having said that, I do think that Sweetgreen will do more over time to address different consumers and price sensitivity. Over time we will think about different menu items and formats and ways to make it more affordable. One way is when you think about our plates, $12 for lunch may be expensive but $12 for dinner is actually pretty affordable. Another way we do this is through things like Outpost [a central drop off shelf in buildings where Sweetgreen couriers drop off orders.] You're not paying the delivery service fee that you would for a lot of other places.

You had signed an exclusive deal with Uber Eats last year and then canceled it. What was the decision behind that?

We have a great relationship with Uber but I think we've realized over time that different consumers use different platforms and they're more incremental to each other than they are cannibalistic. Especially in a post-COVID world where delivery will be a bigger piece of the pie, we wanted to get in front of as many consumers as possible. We also are very focused on our native delivery which is which is by far our biggest delivery channel,

I'm curious how you think about delivery. Because for a lot of restaurants they're sacrificing huge margins...

Correct. Not only are they sacrificing huge margins, but they don't have a direct relationship with their consumers. We have a direct relationship where we can tell you when new menu items come out and we can personalize the experience to you.

So why not just have it all be native?

I think there's certain customers where the marketplace becomes a great place of discovery, it becomes, you know, almost like a customer acquisition marketing tool for us a way to amplify our message and reach more people.

Have you ever thought about doing brunch or breakfast?

We definitely have. Sweetgreen is an ethos, which is connecting people to real foods. Eventually we'd like to take that ethos and expand way beyond salad, bowls and plates, whether it be brunch or otherwise. The vision is to go much, much broader.

That's a perfect segue to my last question. What's your current thinking on a possible IPO?

There's no current thinking right now. We're just very focused on expanding the brand, delivering a great product to consumers and strengthening the business. Sure, one day, but not not anytime soon.

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LA’s Upgrade in Travel and NBA Viewing
Image Source: Los Angeles World Airports

πŸ”¦ Spotlight

Exciting developments are underway for Los Angeles as the city prepares for major upgrades in both travel and entertainment. The Los Angeles Board of Airport Commissioners has approved an additional $400 million for the Automated People Mover (APM) at LAX, increasing its total budget to $3.34 billion. This boost ensures the elevated train’s completion by December 8, 2025, with service starting in January 2026. For Angelenos, this means a significant improvement in travel convenience. The APM will streamline connections between parking, rental car facilities, and the new Metro transit station, drastically cutting traffic congestion around the airport. Imagine a future without the dreaded 30-minute traffic delays at LAX! The APM will operate 24/7, reducing airport traffic by 42 million vehicle miles annually and carrying 30 million passengers each year, while also creating thousands of local jobs and supporting small businesses.

Meanwhile, the NBA is also making waves with its new broadcasting deals. The league has signed multi-year agreements with ESPN, NBC, and Amazon Prime Video, marking a notable shift in media partnerships. ESPN will maintain its long-standing role, NBC returns as a network broadcaster after years away, and Amazon Prime Video will provide NBA games through its streaming platform. Starting with the 2025-2026 season, these deals will enhance the league's reach and revenue, aligning with the NBA's goal to expand its audience and adapt to evolving viewing habits. Whether you're catching the action on TV or streaming online, these changes promise to elevate the fan experience and bring more basketball excitement to Los Angeles.


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  • Fulcrum Venture Group participated in a prior $3.5M Pre-Seed Round for Code Metal, a developer tools startup. - learn more
  • B Capital co-led a $12.5M Seed Round for Star Catcher, a startup that aims to develop a space-based grid that captures solar energy in space and distributes it to satellites and other space assets. - learn more
  • Mantis VC and Amplify participated in a $140M Series C for Chainguard, an open source security startup. - learn more
  • Prominent LA venture capitalist, Carter Reum and wife, Paris Hilton, participated in a $14M Seed/Series A for W, the men’s personal care brand from Jake Paul. - learn more

LA Exits


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🀫 The Secret to Staying Fit at Your Desk: 6 Essential Under-Desk Exercise Machines

Health experts are sounding the alarm: our sedentary jobs are slowly killing us, yet we can't abandon our desks if we want to keep the lights on. It feels like we're caught between a rock and a hard place. Enter under-desk exercise machines – the overlooked heroes (albeit kind of goofy looking) of the modern workspace. These devices let tech professionals stay active, enhance their health, and increase their productivity, all without stepping away from their screens. Here are 6 fantastic options that will enhance the way you work and workout simultaneously.

DeskCycle Under Desk Bike Pedal Exerciser

This bike has nearly ten thousand five-star reviews on amazon. It works with nearly any desk/chair setup. It is quiet, sturdy and allows up to 40 pounds of resistance. If you are looking for an under-desk bike this is a fantastic option.

Type: Under-Desk Bike

Price: $180 - $200


Sunny Health & Fitness Dual Function Under Desk Pedal Exerciser

This under-desk bike is extremely quiet due to the magnetic resistance making it an ideal option if you work in a shared space. It doesn’t slip, has eight levels of resistance, and the option to work legs and arms. It’s about half the price of the DeskCycle bike making it a solid mid-range option for those looking to increase their daily activity.

Type: Under-Desk Bike

Price: $100 - $110


Sunny Health & Fitness Sitting Under Desk Elliptical

This under-desk elliptical comes in multiple colors if you really want to underscore that you are a quirky individual, in case an under-desk elliptical isn’t enough. This model is a bit heavy (very sturdy), has eight different resistance levels, and has more than nine thousand 5-star reviews.

Type: Under-Desk Elliptical

Price: $120 - $230


DeskCycle Ellipse Leg Exerciser

This under-desk elliptical is another great option. It is a bit pricey but it’s quiet, well-made and has eight resistance levels. It also syncs with your apple watch or fitbit which is a very large perk for those office-wide β€œstep” challenges. Get ready to win.

Type: Under-Desk Elliptical

Price: $220 - $230


Daeyegim Quiet LED Remote Treadmill

If you have a standing desk and are looking to walk and work this is a fantastic option. This walking-only treadmill allows you to walk between 0.5 to 5 mph (or jog unless you have the stride length of an NBA forward). It is very quiet, which is perfect if you want to use it near others or during a meeting. You can’t change the incline or fold it in half but it is great for simply getting in some extra steps during the work day.

Type: Under-Desk Treadmill

Price: $220 - $230


Sunny Health & Fitness Foldable Manual Treadmill

This under-desk treadmill isn’t the most premium model but it is affordable and has an impressive array of features. It is a manual treadmill meaning it doesn’t need to be plugged in; it is foldable and offers an incline up to 13%. I personally can’t imagine working and walking up a 13% incline but if that sounds like your cup of tea, then I truly respect the hustle.

Type: Under-Desk Treadmill

Price: $150 - $200




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🀠Musk Picks Texas and πŸ”₯Tinder AI Picks Your Profile Pictures

πŸ”¦ Spotlight

Tinder is altering dating profile creation with its new AI-powered Photo Selector feature, designed to help users choose their most appealing dating profile pictures. This innovative tool employs facial recognition technology to curate a set of up to 10 photos from the user's device, streamlining the often time-consuming process of profile setup. To use the feature, users simply take a selfie within the Tinder app and grant access to their camera roll. The AI then analyzes the photos based on factors like lighting and composition, drawing from Tinder's research on what makes an effective profile picture.

The selection process occurs entirely on the user's device, ensuring privacy and data security. Tinder doesn't collect or store any biometric data or photos beyond those chosen for the profile, and the facial recognition data is deleted once the user exits the feature. This new tool addresses a common pain point for users, as Tinder's research shows that young singles typically spend about 25 to 33 minutes selecting a profile picture. By automating this process, Tinder aims to reduce profile creation time and allow users to focus more on making meaningful connections.

In wholly unrelated news, Elon Musk has announced plans to relocate the headquarters of X (formerly Twitter) and SpaceX from California to Texas. SpaceX will move from Hawthorne to Starbase, while X will shift from San Francisco to Austin. Musk cited concerns about aggressive drug users near X's current headquarters and a new California law regarding gender identity notification in schools as reasons for the move. This decision follows Musk's previous relocation of Tesla's headquarters to Texas in 2021.

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  • Penguin Random House agreed to acquire comic book publisher Boom! Studios from backers like Walt Disney Co. - learn more

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