Sweetgreen: Unraveling Its Success Story

Sweetgreen locations seem to be popping up everywhere. The growing brand has gained popularity as a health-conscious and sustainable fast-casual restaurant chain known for its fresh and locally sourced ingredients.

As Sweetgreen continues to expand, many aspiring entrepreneurs have expressed interest in the possibility of franchising. To the dismay of many, Sweetgreen has never been — and has no plans to become — a franchise.

Company history

With that said, let’s examine the history of Sweetgreen and what you can alternatively invest in.

Sweetgreen was founded in 2007 by three Georgetown University students: Jonathan Neman, Nicolas Jammet and Nathaniel Ru. They were inspired to start Sweetgreen after realizing the lack of healthy and appealing food options around their campus.

The concept for Sweetgreen was born before the founders even graduated, and they conducted taste tests of potential menu items in Jammet's dorm room. The idea was to offer fast but healthy meals made with ingredients from local farmers. With over $300,000 raised from family and friends, Sweetgreen opened its first location in a 560-square-foot shack near Georgetown University, featuring a kitchen smaller than the bathroom.

Despite the humble beginnings, Sweetgreen's popularity grew rapidly. Within a year and a half, the company expanded to two more locations in Washington, D.C., and Maryland. By 2013, Sweetgreen had reached New York with its 20th store, having raised over $35 million in funding.

Since then, Sweetgreen has become a major player in the fast-casual dining industry, with over 140 locations across 13 states.

Growth and values

Sweetgreen hasn’t explicitly stated its reasoning behind its decision not to franchise. However, it can be speculated that the company doesn’t want to stray far from its values by moving beyond an internal growth model.

“Our core values guide our actions and we aim to empower our customers, team members and partners to be a positive force on the food system,” the website states. “That’s why we’re building a transparent supply network, why we cook from scratch, and why we’re building a community of people who believe in the power of real food.”

Alternative investments

If you have your heart set on a healthy fast-casual, not to worry. There are plenty of brands that do franchise. Here are three to consider:

• Investment Range: $356,700 to $873,700

• Unit Count: 3

Main Squeeze Juice Co.

• Investment Range: $385,050 to $682,750

• Unit Count: 28

• Investment Range: $567,000 to $674,000

• Unit Count: 100+