{"id":869,"date":"2015-12-03T21:40:28","date_gmt":"2015-12-04T02:40:28","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/sweetgreen-sweet-sustainable-operating-model-alignment\/"},"modified":"2015-12-03T22:07:53","modified_gmt":"2015-12-04T03:07:53","slug":"sweetgreen-a-healthy-dose-of-operating-model-alignment","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/sweetgreen-a-healthy-dose-of-operating-model-alignment\/","title":{"rendered":"sweetgreen: a healthy dose of operating model alignment"},"content":{"rendered":"<p>Every year around this time, my Uncle Jim faces a daunting task: planning, acre by acre, what he\u2019ll grow next summer on his fruit and vegetable farm.\u00a0 If Jim doesn\u2019t grow enough of an in-demand crop, he\u2019ll miss out on big profits. \u00a0If he grows too much, he could waste thousands of dollars and employee hours harvesting vegetables that ultimately rot.\u00a0 The winter planning process is understandably stressful for small farmers like Jim.\u00a0 But a couple of years ago, Jim met a supplier who wanted to help reduce his planning stress: sweetgreen, the farm-to-table salad chain.\u00a0 sweetgreen goes out of its way to generate and share demand predictions with its small-farm suppliers <em>months <\/em>before the growing season, and to work with farmers to accommodate fluctuations in their summer harvest.\u00a0 Watching Jim interact with sweetgreen was, to me, the first sign that the salad chain\u2019s business and operating models are well-aligned.<\/p>\n<p style=\"text-align: center\"><iframe loading=\"lazy\" title=\"meet the farmer - ward&#039;s berry farm, ma\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/bHeIh5Tpdoo?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<figure id=\"attachment_864\" aria-describedby=\"caption-attachment-864\" style=\"width: 390px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-864\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/kale-caesar-guac-greens-640x352-300x165.jpg\" alt=\"kale-caesar-+-guac-greens-640x352\" width=\"390\" height=\"215\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/kale-caesar-guac-greens-640x352-300x165.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/kale-caesar-guac-greens-640x352-600x330.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/kale-caesar-guac-greens-640x352.jpg 640w\" sizes=\"auto, (max-width: 390px) 100vw, 390px\" \/><figcaption id=\"caption-attachment-864\" class=\"wp-caption-text\">sweetgreen kale caesar and guacamole-greens salads (http:\/\/ocfoodiesmag.com\/sweetgreen-coming-to-the-west-coast\/)<\/figcaption><\/figure>\n<p>sweetgreen\u2019s <span style=\"text-decoration: underline\">business model<\/span> centers on providing customers \u201cdelicious food that\u2019s both healthy for you and aligned with your values.\u201d<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a>\u00a0 The company sells salads made with fresh, local ingredients in a pleasant environment with efficient service and affordable prices.\u00a0 Its 37 stores (as of this writing) target urban, health-conscious consumers on U.S. coasts.\u00a0 Ultimately, sweetgreen is selling <em>both <\/em>food <em>and <\/em>a lifestyle \u2013 one that\u2019s trendy, healthy, and compassionate.<\/p>\n<p>sweetgreen\u2019s <span style=\"text-decoration: underline\">operating model<\/span> can be broken down into <span style=\"text-decoration: underline\">three core elements<\/span> that support its business model: (1) team and company culture, (2) sustainable supply chain, and (3) innovative technology.<a href=\"#_ftn2\" name=\"_ftnref2\">[2]<\/a><\/p>\n<ul>\n<li><strong>Team and company culture: <\/strong>About 1,000 people work for sweetgreen across its headquarters and stores. The company hires and cultivates frontline employees carefully because it recognizes that \u201cemployees are the face of our store\u2026 They are the ones with the most customer interaction, so they should represent our brand in every way.\u201d<a href=\"#_ftn3\" name=\"_ftnref3\">[3]<\/a> To retain employees and inculcate them to the brand, sweetgreen offers perks and incentives aligned to the company\u2019s core values of supporting \u201cwellness and balanced living.\u201d<a href=\"#_ftn4\" name=\"_ftnref4\">[4]<\/a>\u00a0 For example, employees get a free salad during every shift, a healthy perk that <a href=\"http:\/\/mashable.com\/2011\/08\/07\/startup-employee-perks\/#A4YrGpXsgkqn\">seems to be having a noticeable impact on their waistlines<\/a>.\u00a0 Employees also free green shirts \u2013 the darker the shade, the longer the employee has been with sweetgreen \u2013 and an \u201cactive lifestyle\u201d gift on every anniversary, from sneakers to bicycles.<a href=\"#_ftn5\" name=\"_ftnref5\">[5]<\/a>\u00a0 sweetgreen knows its people aren\u2019t just limited to employees.\u00a0 They treat their suppliers and broader community members well, too. For example, sweetgreen hires local architects to design its stores, <a href=\"http:\/\/sweetgreen.com\/community\/\">runs philanthropic initiatives in schools to educate kids about healthy eating<\/a>, and lists local farmers\u2019 names and vegetables on chalkboards in every restaurant.\u00a0 Overall, sweetgreen\u2019s people policies reinforce the \u201chealthy\u201d and \u201ccompassionate\u201d product it is selling.\u00a0 These practices yield free publicity and enhance their brand image, too.<\/li>\n<\/ul>\n<figure id=\"attachment_871\" aria-describedby=\"caption-attachment-871\" style=\"width: 332px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/sweetgreen-store-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-871\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/sweetgreen-store-2.jpg\" alt=\"Mealtime at sweetgreen (http:\/\/www.phillymag.com\/be-well-philly\/2014\/03\/18\/sweetgreen-center-city-set-open-next-week\/)\" width=\"332\" height=\"221\" \/><\/a><figcaption id=\"caption-attachment-871\" class=\"wp-caption-text\">Mealtime at sweetgreen (http:\/\/www.phillymag.com\/be-well-philly\/2014\/03\/18\/sweetgreen-center-city-set-open-next-week\/)<\/figcaption><\/figure>\n<ul>\n<li><strong>Process: <\/strong>sweetgreen\u2019s work process begins with demand modeling that it shares with its small-farm suppliers (described above).\u00a0During harvest season, specialty food distributors collect the produce and deliver it daily to sweetgreen stores, where ingredients are freshly prepared. \u00a0All sweetgreen restaurants are small on purpose \u2013 they minimize storage space and thereby maximize freshness.\u00a0 Importantly, sweetgreen assumes the risks of a bad harvest.\u00a0 For example, if a farmer\u2019s lettuce yield is smaller than expected due to rain, sweetgreen is responsible for sourcing replacement produce (not the distributor or the farmer).\u00a0 sweetgreen might fill gaps via another small farmer, or (with enough warning) change its salad menu to reflect availability of high-quality ingredients.\u00a0 These practices ease the burden on small farmers, and also deliver on sweetgreen\u2019s focus on \u201caligning with your values.\u201d<\/li>\n<\/ul>\n<ul>\n<li><strong>Technology: <\/strong>To maintain the sweetgreen brand with tech-savvy urban millennials, the company has to stay trendy. For this reason, it works to maintain a \u201cseamless user interface\u201d for its customers.\u00a0 For example, sweetgreen has invested heavily in its mobile and online presence.\u00a0 Its mobile app, where customers can order in advance and collect rewards, now processes 25% of all transactions. <a href=\"#_ftn6\" name=\"_ftnref6\">[6]<\/a> sweetgreen also carefully architects its store experience,\u00a0with open kitchens to allow customers to \u201cwatch employees peel and slice raw vegetables as they wait for their salads,\u201d<a href=\"#_ftn7\" name=\"_ftnref7\">[7]<\/a> and biodegradable packaging and recycling bins to encourage sustainability.\u00a0 sweetgreen knows its audience, and its technology reflects that.<\/li>\n<\/ul>\n<p>All in all, sweetgreen\u2019s business model is reflected in more than just its salads.\u00a0 The company\u2019s whole operating model reinforces its commitment to health, sustainability, and compassion \u2013 for its customers, employees, suppliers, and for the broader community.<\/p>\n<p>&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<\/p>\n<p><strong>Sources<\/strong><\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> http:\/\/sweetgreen.com\/our-story\/<\/p>\n<p><a href=\"#_ftnref2\" name=\"_ftn2\">[2]<\/a> \u201cSweetgreen Co-Chief Jonathan Neman Talks 2015 Plans,\u201d <em>DC Inno<\/em>, accessed November 26, 2015, http:\/\/dcinno.streetwise.co\/2015\/02\/09\/sweetgreen-co-founder-jonathan-neman-talks-expansionhires-sgis\/.<\/p>\n<p><a href=\"#_ftnref3\" name=\"_ftn3\">[3]<\/a> \u201cCareer Site Showcase: How Sweetgreen Targets Candidates,\u201d <em>Recruiting.com<\/em>, accessed November 26, 2015, http:\/\/www.recruiting.com\/articles\/career-site-showcase-sweetgreen-targets-candidates\/.<\/p>\n<p><a href=\"#_ftnref4\" name=\"_ftn4\">[4]<\/a> Ibid.<\/p>\n<p><a href=\"#_ftnref5\" name=\"_ftn5\">[5]<\/a> Lauren DrellAug 07 and 2011, \u201c6 Companies With Awesome Employee Perks,\u201d <em>Mashable<\/em>, accessed November 26, 2015, http:\/\/mashable.com\/2011\/08\/07\/startup-employee-perks\/.<\/p>\n<p><a href=\"#_ftnref6\" name=\"_ftn6\">[6]<\/a> http:\/\/techcrunch.com\/2015\/07\/01\/sweetgreen-harvests-35-million-to-satisfy-millennial-salad-cravings\/<\/p>\n<p><a href=\"#_ftnref7\" name=\"_ftn7\">[7]<\/a> Natasha Singer, \u201cA Salad Chain\u2019s Surprise Ingredient: Tech Money,\u201d <em>The New York Times<\/em>, November 29, 2014, http:\/\/www.nytimes.com\/2014\/11\/30\/technology\/a-salad-chains-surprise-ingredient-tech-money.html.<\/p>\n<p>Featured photo taken from\u00a0http:\/\/iowagirleats.com\/2014\/04\/16\/kale-and-wild-rice-bowls-with-honey-balsamic-vinaigrette\/<\/p>\n<p>* This blog post was inspired by a\u00a0conversation with Michael Stebner, Director of Culinary at sweetgreen, November 2015.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>At the innovative new salad chain sweetgreen, operating and business models align for delicious results. Kale yeah!<\/p>\n","protected":false},"author":1092,"featured_media":870,"comment_status":"open","ping_status":"closed","template":"","categories":[28,33,208,37,72,34,192,14],"class_list":["post-869","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-agriculture","category-food","category-health","category-innovation","category-nutrition","category-restaurants","category-social-responsibility","category-sustainability"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>sweetgreen: a healthy dose of operating model alignment - 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-a-healthy-dose-of-operating-model-alignment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"sweetgreen: a healthy dose of operating model alignment - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"At the innovative new salad chain sweetgreen, operating and business models align for delicious results. 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