History and financing
Sweetgreen was founded in 2006[10][11] by Nicolas Jammet, Nathaniel Ru, and Jonathan Neman, all Georgetown University students at the time. The trio were disappointed with campus food options.[12]
Sweetgreen raised its initial $375,000 of startup funding from investors including the three founders' parents, Joe Bastianich, Seth Goldman, and Washington's Latino Economic Development Center.[4][13] In 2013, it accepted a $22 million investment from Revolution Growth, a venture capital fund founded by Steve Case.[14] In 2014, it received $18.5 million in investment from Revolution Growth. In 2015, it raised an additional $35 million in investment under the lead of T. Rowe Price with contributions from existing investor Revolution Growth.[15] The company has raised over $95 million to date.
In 2018, the startup raised a $200 million Series H round led by Fidelity that valued the company at more than $1 billion, bringing Sweetgreen's total funding to $365 million.[16] In the fall of 2019, Sweetgreen raised an additional $150 million Series I round led by Lone Pine Capital and D1 Capital Partners, bringing the company's total valuation to $1.6 billion.[17]
In July 2021, Axios reported that Sweetgreen had filed confidentially for an IPO.[18] It became a public company on November 18, 2021, traded under the New York Stock Exchange symbol SG.
In August 2021, Sweetgreen announced its plans to acquire Massachusetts Institute of Technology startup, Spyce, a Boston-based restaurant that uses service robots to prepare meals.[19] Both Spyce locations closed and the team focused on building a "third generation" of its technology to increase throughput and accuracy for Sweetgreen, potentially starting in two locations in 2023.[20]
In August 2022, Sweetgreen opened a location in Birmingham, Michigan, their first in Michigan, with plans to expand to Troy and Ann Arbor later in 2022.[21]
In May 2023, Sweetgreen opened its first robot-driven Infinite Kitchen location in Naperville, Illinois, where the automation is confined to assembling the food, not the food preparation itself.[22][23]
In May 2024, Sweetgreen reported a 26% Q1 revenue increase, reaching $157.9 million. This growth was primarily attributed to price increases across its menu. Notably, the company achieved an 18.1% profit margin per store, which is considered exceptional within the foodservice industry. Of particular interest were the results from two experimental "Infinite Kitchens" locations, which utilize robotic automation for bowl assembly. These locations reported a significantly higher profit margin of 28%, showcasing the potential impact of automation on the chain's operational efficiency.[24]
