Is Sweetgreen's Value Perception Hurting Its Restaurant Sales in 2025?

Sweetgreen Faces Significant Sales Declines: What’s Happening?

This year has proven particularly challenging for Sweetgreen, the fast-casual salad chain, which has experienced a staggering 9.5% drop in same-store sales. The decline reflects changing consumer preferences, particularly among younger diners aged 25 to 35, who typically comprise a large portion of Sweetgreen's customer base.

CEO Jonathan Neman has acknowledged that the company is grappling with a value perception problem—many view Sweetgreen's offerings as overpriced, with individual salads often priced around $14 to $16. This perception has contributed to a significant reduction in foot traffic, down by 11.7% last quarter.

Competing in a Saturated Market: Sweetgreen's Challenges

While Sweetgreen strives to position itself uniquely in an increasingly competitive landscape, brands offering similar elements at lower price points are threatening its market share. In Q3 2025, the Northeast and Los Angeles regions reported the most pronounced declines, marking areas the chain heavily relies upon for sales.

Such steep drops are not unique to Sweetgreen; many chains have faced regional challenges. For instance, Shake Shack has seen slower sales in the New York market, attributing its struggles to changing consumer behavior, while other chains like Wingstop are contending with a downward trend among Hispanic consumers in California.

Menu Innovations and Adjustments: What Sweetgreen Is Doing

In light of these challenges, Sweetgreen is actively looking to improve customer engagement and retention through strategic menu innovations. To improve the value perception, the brand plans to introduce new items that spotlight their premium proteins, like a steak bowl and plate, which aim to enhance customer value while diversifying the menu offering.

Additionally, Sweetgreen is considering increasing protein portions across its offerings. While such changes could potentially draw back cost-sensitive consumers, it has also resulted in tighter restaurant margins—dropping from 20% to 13%—highlighting the delicate balance between customer satisfaction and profitability.

The Digital Marketplace and Targeted Discounts

To entice former customers back, Sweetgreen recognizes the importance of personal engagement through digital channels. The company plans to implement targeted discounts and promotions designed to increase visit frequency, especially among those who have become hesitant due to perceived high prices.

Neman highlighted the potential revisions in Sweetgreen's rewards program. By offering clearer entry prices and value through personalized offers, the company hopes to foster trust and loyalty, which are essential for long-term success in the competitive restaurant landscape.

The Future: Outlook for Sweetgreen Amid Growing Competition

The current situation raises questions about the long-term viability of Sweetgreen if it cannot shift public perception regarding its prices. Future product launches, including a new handheld item, are viewed as crucial for revitalizing customer interest.
As Sweetgreen pioneers through this turbulent period, adaptability will be key. The culinary landscape is constantly evolving, and companies that innovate and respond to consumer needs tend to thrive.

For restaurant owners grappling with similar challenges, examining Sweetgreen's plight provides critical insights into consumer behavior and the importance of perceived value. Developing loyalty programs, innovating menus, and being responsive to customer feedback can spell the difference between stagnation and growth.

Conclusion: Strategies for Survival

For restaurant owners, the lessons from Sweetgreen's recent struggles underline the need for a robust value proposition and responsive menu strategies. Emphasizing consumer engagement and freshness can make a significant difference in attracting and retaining customers in a challenging market landscape.