{"id":7565,"date":"2015-12-09T23:30:32","date_gmt":"2015-12-10T04:30:32","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/sweetgreen-live-the-sweetlife\/"},"modified":"2015-12-09T23:30:32","modified_gmt":"2015-12-10T04:30:32","slug":"sweetgreen-live-the-sweetlife","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/sweetgreen-live-the-sweetlife\/","title":{"rendered":"Sweetgreen: Live the Sweetlife"},"content":{"rendered":"

Sweetgreen: a Winner<\/span><\/span><\/p>\n

Despite its young owners, Sweetgreen has developed a strong alignment between its operating and business models [1]. Started in 2007 by three Georgetown college graduates, Sweetgreen is a fast-casual restaurant that serves farm-to-table salads and wraps [1, 2]. In 2014, Sweetgreen operated 31 stores with revenues of $50 million [3]. In 2015, it opened 10 new restaurants and drove 50% growth in revenues [3]. While innovation leaders accused salad bars of being \u201cpasse\u201d [3], Sweetgreen developed a lifestyle brand\u00a0beyond its basic food business. It cultivated mass \u201ccool\u201d appeal through its focus on convenience, health, and sustainability, each deeply evident in its stores, ingredients, and marketing [4].\u00a0<\/span><\/span><\/p>\n

Business Model<\/span><\/p>\n

Sweetgreen seeks to address the gap between fast, convenient restaurants and healthy food options [5]. It partners with local farms to provide every ingredient offered in its salads and wraps [3]. Consumers can stand in a fast-moving line to order customized or signature salads or pre-order online or the Sweetgreen app [3]. Instead of traditional sodas, customers can only select from bottled water, teas, and juices as well as\u00a0house-made teas and lemonades [4]. Sweetgreen\u2019s focus on health is deeply linked to sustainability, which is echoed throughout the whole store. All utensils, bowls, napkins, and cups are compostable [1, 5]; the stores’ tables and chairs are all made from local, reclaimed wood [1]; and even storefronts are designed to match the look and feel of each neighborhood [4].<\/span><\/span><\/p>\n

Sweetgreen is more than a traditional food option; it embodies a lifestyle that appeals to its educated, health-conscience and social\u00a0customer-base [4]. As such, it does no traditional marketing and focuses on offering great customer experiences [4]. This encompasses store experience, but also through its close association with well-known chefs and music artists [1]. It lures customers to new stores by blasting music outside [4]; its motto of\u00a0\u201cBeets don\u2019t kale my vibe\u201d is inspired by the rapper Kendrick Lamar; and it attracts new customers at its annual music festival, Sweetlife [1].\u00a0<\/span><\/span><\/p>\n

Operating Model:<\/span><\/p>\n

    \n
  1. Structure: Product and Community<\/span><\/span>\n
      \n
    1. Sweetgreen owns and operates each of its stores with no plans to franchise. It believes that its core asset is its partnerships with farms, which would be complicated under franchising agreements [4]. As\u00a0mentioned above, its product is fresh, organic, local vegetables and humanely-raised livestock as\u00a0well as healthy drink options. It creates a community through its non-traditional marketing campaigns, which is largely grown through\u00a0word of mouth and its annual Sweetlife Festival [4]. C<\/span>oncert-goers get healthy meals while learning about energy, composting, and other sustainability issues [4].<\/li>\n<\/ol>\n<\/li>\n
    2. Processes: Service and Innovation<\/span>\n
        \n
      1. Because of its mission to provide great customer experience and convenience, Sweetgreen has\u00a0committed to keeping at the forefront of technology. It was one of the first to partner with LevelUp, a mobile payment app [4]. It also has its own app, which accounts for 25% of the orders, that allows customers to skip the line and pick up their order at an appointed time<\/span>\u00a0[4]<\/span>. In addition, it aggressively searches for locations that provide convenience for customers, particularly during the lunchtime [4].<\/span><\/span><\/li>\n<\/ol>\n<\/li>\n
      2. Assets & Capabilities: HR and People<\/span>\n
          \n
        1. Similarly, Sweetgreen carries out its mission of great customer experience through a rigorous hiring process. Frontline employees are the face of the brand and interact the most with customers, so Sweetgreen seeks out passionate, energetic people who embody the brand. To retain these employees, Sweetgreen provides clear career path\u00a0growth. Additionally, it offers employee perks in keeping with the brand\u2019s support for a balanced and healthy lifestyle [2].<\/span><\/li>\n<\/ol>\n<\/li>\n<\/ol>\n
          Alignment and Future Success<\/span><\/div>\n
          <\/div>\n
          The business and operating models align and support each other in every vertical. The focus on the health-conscience consumer is reflected in Sweetgreen\u2019s decision to source ingredients from local farmers. This focus permeates every aspect of Sweetgreen\u2019s\u00a0business. Its menu has some signature items but changes seasonally as the weather shifts in the NE and California, where its stores are located [1, 3]. Stores also prominently display chalkboards to identify the farms that have sourced the store\u2019s ingredients that day [1]. All ingredients are displayed in front of the consumer to visually verify the quality, while efficient assembly lines and technology quickly process approximately 160,000 salads annually [3] as a result of long lines that flow outside the store and down the block [1]. While these tech options keep Sweetgreen\u00a0\u201ccool,\u201d they more importantly accomplish Sweetgreen\u2019s mission to be easy and accessible to customers [1].<\/div>\n
          <\/div>\n
          Sweetgreen creates and sustains competitive advantage through its mission: it isn\u2019t just a food option, but rather a healthy lifestyle. The vibe of the company resonates with customers who want to leave a gentle footprint. Signage around the store identifies the Sweetgreen mission and values that focus on balance,\u00a0sustainability, and impact. In addition, a percent of each order is donated to FoodCorps, a nonprofit that brings healthy meals to underprivileged kids [1].<\/div>\n
          <\/div>\n
          As a result of its alignment success, Sweetgreen is positioned to maintain its strong competitive position and rapid growth rate as it moves into new markets.<\/div>\n
          \n
          <\/div>\n
          [1]\u00a0http:\/\/www.businessinsider.com\/sweetgreen-salad-raises-185-million-2014-11?op=1<\/a><\/div>\n
          [2]\u00a0http:\/\/www.recruiting.com\/articles\/career-site-showcase-sweetgreen-targets-candidates\/<\/a><\/div>\n
          [3]\u00a0http:\/\/www.buzzfeed.com\/venessawong\/sweetgreen-gets-35-million-to-take-high-end-salad-national#.amkpQ69N9J<\/a><\/div>\n
          [4]\u00a0https:\/\/www.qsrmagazine.com\/emerging-concepts\/one-watch-sweetgreen<\/a><\/div>\n
          [5]\u00a0https:\/\/www.georgetown.edu\/news\/sweetgreen-founders-tell-secrets-of-sweet-success.html<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

          Sweetgreen: a Winner Despite its young owners, Sweetgreen has developed a strong alignment between its operating and business models [1]. Started in 2007 by three Georgetown college graduates, Sweetgreen is a fast-casual restaurant that serves farm-to-table salads and wraps [1, […]<\/p>\n","protected":false},"author":1075,"featured_media":7566,"comment_status":"open","ping_status":"closed","template":"","categories":[],"class_list":["post-7565","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"\nSweetgreen: Live the Sweetlife - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/sweetgreen-live-the-sweetlife\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sweetgreen: Live the Sweetlife - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"Sweetgreen: a Winner Despite its young owners, Sweetgreen has developed a strong alignment between its operating and business models [1]. 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