SweetGreen Cancels Ripple Fries Amid Sales Decline
SweetGreen Inc. has decided to discontinue Ripple Fries, a menu item that had customers promising to “feel better,” just five months after its introduction.
This decision coincides with the chain’s second consecutive quarterly drop in sales. Stocks fell 23% in New York on Friday, marking the largest decline recorded.
The fries were marketed to health-conscious diners, as they were air-fried in avocado oil rather than the seed oils criticized by US Health Secretary Robert F. Kennedy Jr. However, without the sales volume typical of larger chains like McDonald’s, SweetGreen’s fries often languished at the counter, losing their fresh appeal. Many patrons were more drawn to the salads and healthier options, rather than ordering $4.95 fries.
CEO Jonathan Neman mentioned that although customers enjoy fries, managing this additional item complicates operations. He stated during an analyst call, “From next week, we’ll be canceling Ripple Fries to concentrate on our core offerings.”
The salad chain is working to refine its operations and encourage customers to return for its $15 salads and bowls. On Thursday, the company significantly lowered its sales projections after reporting a 7.6% decline in comparable sales for the second quarter. They’re now anticipating that sales at established restaurants will decrease by 4% to 6% this year.
In contrast, the Russell 2000 index has seen less than a 1% drop, while SweetGreen’s stock had already lost about 61% of its value this year by the end of Thursday.
SweetGreen noted that declines are especially noticeable in major urban markets and relate to how customers view the value of their meals. In May 2024, the introduction of steak as a new protein option had initially attracted diners but led to higher prices. Recently, a drop in customer traffic showed that some opted for more affordable choices instead.
Neman indicated that comparable sales have shown slight improvement so far in the third quarter. The chain has boosted chicken and tofu portions by 25%, made several recipe enhancements for better taste and quality, and launched a limited-time offer priced at $13.
