LA Tech Updates: Starbucks, Obama Alums Join Sweetgreen Board: GOAT Ad Airs During NBA Playoffs
Aug 24 2020
Here are the latest updates on news affecting Los Angeles' startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for more.
Today:
- GOAT Uses NBA Playoffs to Launch Brand Campaign
- Jarrett and Burrows Join Sweetgreen Board
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GOAT Uses NBA Playoffs to Launch Brand Campaign
<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="34a728a4a25ee6fef9cdd07480400ab2"><iframe lazy-loadable="true" src="https://www.youtube.com/embed/1ooQjeHnGyI?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span><p>Online sneaker reseller GOAT will air their first television ad campaign during the NBA playoffs this week as the fast-growing Culver City company looks to build its audience beyond sneaker heads.</p> <p>The company has been amping up their buzz around the profitable NBA market, where players like LeBron James are tastemakers and drive sales for shoe companies, since it scored a $100 million investment from tennis shoe giant retailer Footlocker.</p><p>Since then, GOAT sealed a deal with the Brooklyn Nets allowing it to plaster the signage, content and more along the team's path during home and away games. It extended its agreement with Los Angeles Lakers Kyle Kuzma to represent the brand by wearing their shoes and apparel. And earlier this year, GOAT added Rui Hachimura of the Washington Wizards, 2019 rookie of the year, as a brand representative. </p> <p>The 30-second ad directed by Daniel Sannwald, who has worked with Rhianna, Travis Scott and Nike, opens up with a sound like a live wire that breaks into a beat and features a battery of silhouettes in sneakers and oversized coats. Sneakers, apparel accessories, the ad reads then says. Past, present, future. </p> <p>Begun by college friends five years ago, GOAT tapped into the massive sneaker resale market with a platform that "authenticates" shoes. It has since expanded into apparel and accessories and states that it has 20 million members. </p> <p>Venture capital firm Andreessen Horowitz <a href="https://dot.la/wag-labs-goat-top-startups-2645216719.html" target="_self">ranked the company 16 on its top 100 largest</a> and fastest-growing consumer startups and private companies earlier this year.</p> <p>GOAT takes its name from the sports acronym for "Greatest of All Time."</p>Jarrett and Burrows Join Sweetgreen Board
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzU3NzU0OC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0OTQyNDE2M30.U2Xpkn5DxZ_IQXV7nrIgP5s5mABaeREDVKMz_WRB-lY/image.jpg?width=980" id="9c1ca" class="rm-shortcode" data-rm-shortcode-id="bb4cb885cfa5fe71cd621dabf35dd115" data-rm-shortcode-name="rebelmouse-image" /><p><a href="https://www.linkedin.com/in/valeriejarrett/" target="_blank">Valerie Jarrett</a>, a former senior advisor to President Barack Obama, has joined Sweetgreen's board of directors, along with <a href="https://www.linkedin.com/in/cliff-burrows-069361a5/" target="_blank">Cliff Burrows</a>, former group president of Starbucks' Siren Retail business, which includes the coffee maker's Reserve Roasteries and Princi bakeries.</p><p>Jarrett is currently is a Senior Distinguished Fellow at the University of Chicago Law School and a senior advisor to the Obama Foundation.</p><p>Last month, Sweetgreen's <a href="https://dot.la/an-interview-with-sweetgreens-ceo-why-its-not-a-tech-company-and-how-hes-adapting-to-covid-2646353260.html" target="_self">CEO, Jonathan Neman, told dot.LA</a> his goal was to build the company into being the "Starbucks of real food." </p><p>Burrows spent two decades at Starbucks <a href="https://www.designretailonline.com/news/people/starbucks-announces-exit-of-siren-retail-president/" target="_blank">before exiting last year</a> and was most recently responsible for elevating the customer and employee experience. Prior to that, he was Group President of Starbucks Coffee U.S. and Americas and President of the U.S. Retail Operation. </p><p>In May, Sweetgreen brought on Chris Carr, a former Starbucks executive, as its chief operating officer. <br></p><p>The hires come as Sweetgreen, valued at $1.6 billion, seeks to expand well beyond its current 108 stores to over 1,000 locations. </p>From Your Site Articles
- GOAT Uses NBA Playoffs to Launch Brand Campaign - dot.LA ›
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Here are the latest updates on news affecting Los Angeles' startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for more.
Today:
- Sweetgreen COO Chris Carr Joins Hilton's Board of Directors
- Snap's New Apps Aim to Get Young Voters Registered and Informed
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Snap's New Apps Aim to Get Young Voters Registered and Informed
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzUzOTc4Ny9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY1NTc2NDM2N30.zRjr25sXg_h7s6EK65b1XfmN4mUbbHJoA3MZc6tW6Dc/image.png?width=980" id="d7d61" class="rm-shortcode" data-rm-shortcode-id="8802c6c5a71cef62c38759453559f9b8" data-rm-shortcode-name="rebelmouse-image" /><p>Santa Monica-based Snap announced new features and partnerships Thursday meant to help young people vote. The announcement coincides with the 55th anniversary of the passage of the Voting Rights Act.</p><p>Two new features are Minis, simplified third-party apps that live within Snapchat, <a href="https://dot.la/headspace-and-snapchat-2646169354.html" target="_self">which Snap debuted at its annual Partner Summit earlier this year</a>. </p><p>The Voter Registration Mini will enable Snap users to register to vote without having to leave the app. It was developed in partnership with TurboVote, part of New York-based nonprofit Democracy Works. </p><p>In 2018, <a href="https://www.nytimes.com/2018/10/23/technology/snapchat-voter-registration-midterms.html" target="_blank">Snap helped to register over 450,000 users to vote</a>, 57% of whom turned out, a company spokesperson said. </p><p>The Before You Vote Mini, developed in partnership with Chicago-based nonprofit BallotReady, is meant to help Snapchat users understand their options for voting early and by mail. Users will be able to fill out sample ballots with their friends, and look up polling locations, the spokesperson said. </p><p>Snap is also adding searchable resources for users who look up keywords like "voter registration", "vote by mail" and "voter suppression". Information will come from organizations including the NAACP and the ACLU.</p><p>Every Snap user will also have a "voter checklist" feature incorporated into their profile, which will remind them to register to vote, consider their ballot before Election Day and make a voting plan.</p><p>The new features will debut in September. </p><p>Snap's announcement highlighted several obstacles that young people face in the voting process. <a href="https://circle.tufts.edu/latest-research/growing-voters-profile-youngest-eligible-voters-2020" target="_blank">New research out of Tufts University</a> shows that many young people rely on college campuses to learn about civic engagement. </p><p>"63% of 18-21 year olds who have at least some experience with college said they learned about voter registration at their schools, and 66% said their college professors had encouraged them to vote," the spokesperson said, adding that COVID-19 will disrupt this process. </p><p>The Tufts data also show that only 24% of 18-29 year olds report having voted by mail before. And over a quarter of 18-21 year olds say they don't know where to find information about mail-in-voting. </p><p>"For a generation who grew up on smartphones, and are used to being able to do everything from their fingertips – to date technologies haven't done much to make it easier for them to vote," the spokesperson said. </p>Sweetgreen COO Chris Carr Joins Hilton's Board of Directors
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzUzOTcxNy9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYxNzEwMzkwMn0.hWhQsvYh9LM7C1rJAj3Im1ejatkB6QRHYDhz9wSiJgI/img.jpg?width=980" id="5e4c4" class="rm-shortcode" data-rm-shortcode-id="0b29083ac3d3ba80cd0e071dc2aaade3" data-rm-shortcode-name="rebelmouse-image" />LA Tech Updates: Snap Releases Voting Apps; Hilton Taps Sweetgreen COO<p><a href="https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.hilton.com%2Fen%2Fcorporate%2F&esheet=52261234&newsitemid=20200805005222&lan=en-US&anchor=Hilton+Worldwide+Holdings+Inc&index=1&md5=ffc251c987d343bcc24b2e88ff514f33" target="_blank">Hilton Worldwide Holdings Inc</a>. announced Wednesday that Chris Carr, who recently joined Sweetgreen as Chief Operating Officer, has been appointed to the hotel chain's board of directors.</p><p>Carr started at Sweetgreen in May after 13 years at Starbucks, where he most recently served as chief procurement officer. There, he was responsible for global strategic sourcing and supplier relationships. Prior to Starbucks, Carr spent 18 years with ExxonMobil in retail operations.</p><p>"We are delighted to welcome Chris to Hilton," said Jon Gray, chairman of Hilton's board of directors in a written statement. "When we began our board search process last year, we were looking to add world class executive leadership in global and consumer-facing organizations. Chris brings these highly relevant skills, as well as unmatched focus on customer experience and procurement. We look forward to his insights as we navigate Hilton's continued recovery from the COVID-19 pandemic."</p><p>Carr joins the Hilton board at what is probably the most challenging time in its storied 101 year history. <a href="https://www.investopedia.com/hilton-worldwide-hlt-reports-77-q2-revenue-decline-5073862" target="_blank">The company lost $432 million in the second quarter</a> while revenue plummeted 77.3% year-over-year as people stayed at home because of the coronavirus.</p><p>Carr also serves as a director at REI, a trustee of Howard University and a trustee of the University of San Diego.</p>From Your Site Articles
- Snap Releases Voting Apps - dot.LA ›
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'Sweetgreen is Not a Tech Company': The Company's CEO on How He's Adapting to the Pandemic
Jul 07 2020
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.
<p>"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."</p><p>Sweetgreen's origin story is decidedly techie. Neman <a href="https://www.washingtonian.com/2018/09/18/nicolas-jammet-sweetgreen-got-its-start-georgetown-the-tavern/" target="_blank">hatched the concept </a>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.</p><p>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. </p><p>The company would not disclose its numbers for this year but in an <a href="https://medium.com/@sweetgreen/why-we-decided-to-return-our-ppp-loan-9ffa870d1363" target="_blank">April blog post</a> Neman and his co-founders described revenue being "dramatically affected" by the coronavirus. That month, Sweetgreen <a href="https://dot.la/sweetgreen-layoffs-2645746821.html" target="_self">laid off about 10% of workers at its headquarters</a> and furloughed nearly 2,000 store employees after deciding to <a href="https://www.forbes.com/sites/alexandrasternlicht/2020/04/23/sweetgreen-returns-10-million-ppp-loan-but-it-may-not-get-redistributed/#11ab3f07155c" target="_blank">return a $10 million PPP loan.</a></p><p>"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.</p><p>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, <a href="https://www.qsrmagazine.com/news/sweetgreen-launches-first-new-menu-category-4-years" target="_blank">it introduced its first new major menu category</a> 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 <a href="https://www.businesswire.com/news/home/20200706005515/en/sweetgreen-Launches-5-Greens-Day" target="_blank">$5 Greens Day</a> where it will offer select bowls and salads for well under half the normal price.</p><p class="shortcode-media shortcode-media-rebelmouse-image image-crop-4x3">
<img type="lazy-image" data-runner-src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzQzODM5OC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyMzIxMjcyMn0.EHXGN3onEvw1KTRV9bqaqVxn7bUsPeCf96lbW5Pce0I/image.jpg?width=2000&coordinates=0%2C56%2C0%2C56&height=1500" id="41571" class="rm-shortcode" data-rm-shortcode-id="864b26bda1f88418328922d8f2702bf3" data-rm-shortcode-name="rebelmouse-image" />
<small class="image-media media-caption" placeholder="Add Photo Caption...">Sweetgreen<a href="https://www.qsrmagazine.com/news/sweetgreen-launches-first-new-menu-category-4-years" target="_blank"> introduced its first new major menu category</a> since adding bowls four years ago – nine different plates, ranging from Hot Honey Chicken to Shroomy Asada.</small></p><p>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.<br/></p><h4>A lot of your business has been centered around offices. How are you adjusting since people aren't coming into offices?</h4><p>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.</p>
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzQzODM5Ny9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyNTMyNDk5NX0.jtrZxOfwT2WmQ73lA-7V5g2pOBinoSN9hyujj9e12mw/img.jpg?width=980" id="45a48" class="rm-shortcode" data-rm-shortcode-id="80db48b78f4c7d0e249083856ea8e65a" data-rm-shortcode-name="rebelmouse-image" />
Jonathan Neman hatched the concept of with classmates Nicholas Jammet and Nathaniel Ru in a dorm room during their senior year at Georgetown University.
<h4>Does COVID change where you anticipate opening stores in the next few years?</h4><p>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.</p><h4>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?<br></h4><p>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. </p>
<h4></h4><p>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.<br/></p><h4>You had signed an <a href="https://www.restaurantdive.com/news/sweetgreen-strikes-exclusive-deal-with-uber-eats-plans-to-create-its-own-d/563504/" target="_blank">exclusive deal with Uber Eats last year</a> and then canceled it. What was the decision behind that?</h4><p>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,</p><h4>I'm curious how you think about delivery. Because for a lot of restaurants they're sacrificing huge margins...</h4><p>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.</p><h4>So why not just have it all be native?</h4><p>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. </p><h4>Have you ever thought about doing brunch or breakfast?</h4><p>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. </p><h4>That's a perfect segue to my last question. What's your current thinking on a possible IPO?</h4><p>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.</p>From Your Site Articles
- sweetgreen - dot.LA ›
- Sweetgreen Reopens Stores and Brings Back Workers - dot.LA ›
- Sweetgreen Lays Off 10% of Staff at Its L.A. Headquarters - dot.LA ›
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