Dining out is becoming an expensive habit for Americans, prompting many consumers to rethink how often they eat out and how much they’re willing to spend on a meal.
Restaurant menu prices rose 3.5% in September compared with a year earlier, nearly double the 1.8% increase in grocery prices, according to the Bureau of Labor Statistics.
The rising cost of eating out is also changing consumer behavior. A National Restaurant Association survey found that 39% of consumers spent less on restaurants, takeout and delivery during the third quarter than in the previous quarter, while 40% reported relying more heavily on discounts and promotions.
This shift has posed a particular challenge for restaurant chains that have built their businesses around premium ingredients and higher-priced meals, as customers increasingly seek affordable alternatives.
Sweetgreen is among the chains trying to adapt. The fast-casual salad brand has been making changes to its menu, pricing and restaurant operations in an effort to improve its value proposition and bring customers back.
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The chain, which built its reputation on fresh salads, customizable bowls, and premium ingredients, has been reworking its strategies to focus on accessibility as consumers become more selective about their restaurant spending.
Earlier this year, sweetgreen introduced wraps priced around $12.50 on average, expanded its seasonal menu, and began experimenting with a simpler pricing system for customized bowls.
Those changes have helped bring customers back, but they’ve also created a new challenge: Diners are spending less per order.
Now, sweetgreen is bringing in new culinary leadership as analysts anticipate an improvement in sales following a difficult summer.
Sweetgreen hires former Shake Shack chef to revamp menu
On Oct. 22, sweetgreen appointed John Karangis as its new executive chef and senior vice president of culinary. Karangis previously served as executive chef and vice president of culinary innovation at Shake Shack, overseeing menu development, research and chef collaborations.
He will lead sweetgreen’s culinary strategy, strengthen existing menu offerings and develop new dishes for the chain’s more than 285 restaurants.
His appointment follows sweetgreen’s largest menu category expansion in May, when it introduced wraps nationwide. Priced below $15, with an average price of approximately $12.50 at launch, the wraps were designed to offer a more affordable and portable alternative to the chain’s traditional bowls.
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During its second-quarter earnings call, sweetgreen said wraps accounted for approximately 20% of orders, exceeding expectations. More than half of customers who purchased a wrap returned within 30 days, outperforming the chain’s popular Harvest Bowl.
However, the lower-priced offerings also weighed on sales.
According to sweetgreen’s second-quarter financial results, same-store sales declined 6.2%, including a 2% decline in traffic and a 4.2% decline attributable to changes in the product mix.
The company said increased promotions, lower-priced wraps and the discontinuation of Ripple Fries contributed to the decline in sales mix.
Sweetgreen closes restaurants as sales decline
Sweetgreen’s efforts to bring customers back come as the company has also been closing restaurants.
According to its second-quarter SEC filing, six permanently closed restaurants and eight temporarily closed locations were excluded from its same-store sales calculations for the first six months of 2026.
This follows the three permanent restaurant closures in 2025.
Among the locations shuttered this year was sweetgreen’s restaurant in Crystal City, Arlington, Va., which closed after a decade in business, as TheStreet previously reported.
The closures were part of a broader reassessment of sweetgreen’s restaurant footprint.
During the company’s February earnings call, CFO Jamie McConnell said a handful of locations would close as leases expired, while management was also reviewing restaurants that were not generating positive cash flow.
“We are looking at the whole portfolio,” McConnell said.
Despite the closures, sweetgreen continues to expand selectively. The company operated 287 restaurants as of June 28 and expects approximately 13 net new openings during 2026.
Sweetgreen has also shuttered locations in New York City, including two Manhattan restaurants this year.
Its restaurant at 8 East 18th Street near Union Square was reported closed in February 2026, while another at 311 Amsterdam Avenue on the Upper West Side permanently closed in September, according to local reports and restaurant listings.
The Upper West Side location had temporarily closed following a health inspection in August before reopening days later. Sweetgreen did not disclose the reason for its subsequent permanent closure.
The shutdowns come as the chain reassesses its restaurant portfolio and tries to attract customers with new menu offerings and lower-priced meals.
Sweetgreen brings in former Shake Shack Chef to lead operations and starts Chef in Residence program.Trevor Srednick / Getty Images
UBS expects Sweetgreen sales to recover after summer setback
Sweetgreen’s recovery faced another challenge in July when a multistate Cyclospora outbreak linked to contaminated lettuce raised concerns about fresh prepared foods.
Sweetgreen was not identified as a source of the outbreak, but the company said the headlines reduced demand for its products. Management estimated that the scare reduced July comparable sales by approximately six percentage points.
However, analysts now see signs of improvement.
In an Oct. 27 research report seen by TheStreet, UBS analyst Dennis Geiger forecast a 7% decline in third-quarter same-store sales, followed by a return to positive growth in the fourth quarter.
UBS expects the recovery to be supported by easing food-safety concerns, continued demand for wraps, seasonal menu launches, targeted marketing and loyalty incentives. The bank also raised its full-year same-store sales forecast to a 6.1% decline, from its earlier projection of an 8% decline.
Yet profitability still remains a challenge.
UBS forecasts third-quarter restaurant-level margins of 8.8%, suggesting continued pressure from promotional activity, food costs and labor expenses. It expects margins to recover to 14.7% in 2027 as sales improve and the company reduces food waste and improves labor productivity.
However, sweetgreen’s own guidance still calls for a 7% to 8% decline in same-store sales for 2026.
Sweetgreen tests new pricing, starts Chef in Residence program
Sweetgreen is also changing how customers pay for customized meals.
During its August earnings call, CEO Jonathan Neman said the company was testing a redesigned Create Your Own ordering system that includes protein in the base price and provides clearer pricing for premium ingredients.
The test began in Indianapolis before expanding to the Washington, D.C., metropolitan area and parts of Southern California.
Neman said customers had responded positively to the simpler system, which was designed to reduce unexpected price increases during order customization.
The company was targeting a broader rollout by year-end, subject to test results.
Meanwhile, sweetgreen has also adjusted its SG Rewards program, introducing more accessible redemption options, including $3 off an entrée and a wrap reward requiring fewer points than a full entrée.
Its recent menu additions include the returning Autumn Harvest Bowl, Maple-Glazed Salmon, and Roasted Bacon Brussels, available through Dec. 31.
A collaboration with cookbook author Molly Baz also introduced three limited-time lunch items available through November 9. In a first for sweetgreen, these three items will be built around Baz’s “signature dilly dill pickle chicken salad.” The three new menu items will be:
Molly’s Big Dill Caesar Wrap
Molly’s Pickle Caesar Sal
Molly’s Double Chick Scoop
Baz’s journey is part of sweetgreen’s Chef Residency program, through which the restaurant chain will introduce many new and unique flavors.
“Molly is the first of many voices we’ll welcome through our new Chef Residency. Her bold approach to flavor made her a natural choice to kick it off, and these three new delicious lunch orders show what’s possible when we create together,” said Zipporah Allen, Chief Commercial Officer at sweetgreen.
The changes could mean more affordable entry points, additional meal choices and a more convenient ordering experience.
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