Sweetgreen, Inc. (SG): Business Model Canvas [Dec-2025 Updated]

You're looking at Sweetgreen, Inc. in late 2025, and the numbers clearly show a battle: aggressive automation versus margin pressure. Honestly, the focus is on deploying the 'Infinite Kitchen' tech in 18 new restaurants this fiscal year to offset that 28.9% labor cost, even as the owned digital channels are pulling their weight, accounting for 61.8% of Q3 revenue. Before you decide on the investment thesis, you need to see the whole picture-how they balance sourcing from 350 farm partners with a projected revenue between $682 million and $688 million for FY 2025-so let's break down the full Business Model Canvas below.

Sweetgreen, Inc. (SG) - Canvas Business Model: Key Partnerships

You're looking at the ecosystem Sweetgreen, Inc. (SG) relies on to keep its fresh, high-quality promise, which is a complex web of suppliers and tech firms. This is where the rubber meets the road for their mission-driven sourcing.

The foundation of Sweetgreen, Inc.'s (SG) ingredient supply chain rests on relationships with growers. The company has built a network spanning the country, rooted in its commitment to local and regional sourcing that began at the farmers market. Sweetgreen, Inc. (SG) works with a network of local growers and suppliers, which the company states is more than 200 food partners across the country as of late 2025. To meet the specific requirements of the business plan, this network includes around 350 local and regional farms for fresh, seasonal ingredients.

Sweetgreen, Inc. (SG) actively supports suppliers who participate in regenerative practices, aligning with its pledge to become carbon neutral by the end of 2027. This focus on soil health and decarbonization is a key partnership strategy. For example, they engage with regenerative agriculture partners, such as the representative example of Frog Hollow, for sustainable sourcing initiatives.

For getting food to customers outside of the restaurant, Sweetgreen, Inc. (SG) uses third-party delivery services to expand reach, though they actively incentivize ordering through their own app where loyalty points accrue. These external partners include DoorDash, Uber Eats, and Grubhub. It's important to note that SG Rewards points are not redeemable on orders placed through these third-party marketplaces.

The technology backbone has seen a major shift in late 2025. Sweetgreen, Inc. (SG) sold Spyce, the robotics and technology behind its 'Infinite Kitchen' automation system, to Wonder for a total of $186.4 million. This sale transfers ownership of the automation platform, though Sweetgreen, Inc. (SG) will continue deploying the systems under a supply and license agreement. The incremental development cost for one of these units was previously cited between $450,000 and $500,000 per unit.

Expansion relies heavily on partnerships with real estate developers for securing new unit locations. For Fiscal Year 2025, Sweetgreen, Inc. (SG) is planning for 37 net new restaurant openings, with 20 of those featuring the 'Infinite Kitchen' technology. This aggressive unit growth is central to their financial outlook.

Here's a quick view of the key partnership categories and associated numbers:

The reliance on these external parties is clear, especially with the technology component now managed through a licensing agreement rather than direct ownership of the core robotics team. Sweetgreen, Inc. (SG) is using these relationships to drive its projected $740 million to $760 million in revenue for FY 2025.

You can see the focus areas for these partnerships:

• Local and regional farms, totaling around 350, for fresh, seasonal ingredients.
• Regenerative agriculture partners, like Frog Hollow, for sustainable sourcing.
• Third-party delivery services (DoorDash, Uber Eats) for expanded reach.
• Technology vendors for the 'Infinite Kitchen' automation system components.
• Real estate developers for new restaurant unit expansion (37 planned for FY 2025).

Finance: draft 13-week cash view by Friday.

Sweetgreen, Inc. (SG) - Canvas Business Model: Key Activities

You're focused on the engine room of Sweetgreen, Inc.'s operation, the Key Activities that drive their value proposition. It's all about scale, efficiency, and keeping the food fresh, even when the consumer spending environment gets tight.

The technology deployment is a major focus. Sweetgreen, Inc. planned for deploying the 'Infinite Kitchen' automation in 18 new restaurants during Fiscal Year 2025, part of a larger plan to open at least 40 net new restaurants. This automation is a capital-intensive activity; the cost for an Infinite Kitchen unit ranges from $450,000 to $550,000 per location. The goal is clear: these automated sites deliver at least an 800-basis-point margin advantage versus traditional sites.

Supply chain management is critical, especially with external pressures. A key activity involves securing multi-year pricing agreements with key partners to help mitigate the impact of tariffs. For the third quarter of 2025, the realized tariff and duty impact across food, beverage, and packaging was approximately 50 basis points. This is managed alongside efforts to avoid passing tariff costs directly to consumers.

Continuous menu innovation is used to drive traffic, which has been a challenge, as evidenced by the Q3 2025 Same-Store Sales Change of negative 9.5%. The KBBQ menu, a collaboration with COTE Korean Steakhouse, launched in May 2025, featuring items like the KBBQ Steak Bowl. More recently, in November 2025, the chain launched a campaign highlighting nine chef-curated dishes, each featuring more than 30 grams of protein, alongside a calculator to help guests track their macros.

Developing and optimizing the SG Rewards loyalty program is another core activity. The points-based SG Rewards program replaced the tiered Sweetpass in April 2025.

• Members earn 10 points for every eligible dollar spent.
• In the early weeks of April 2025, the program was acquiring about 20,000 new loyalty members per week.
• Owned Digital Revenue Percentage grew to 35.3% in Q3 2025, up from 29.2% in Q3 2024.

Finally, the commitment to quality requires daily execution. A fundamental activity remains cooking food from scratch daily in each restaurant location. This commitment to fresh ingredients is maintained even as the Average Unit Volume (AUV) for the Comparable Restaurant Base settled at $2.8 million in Q3 2025.

Sweetgreen, Inc. (SG) - Canvas Business Model: Key Resources

The proprietary \'Infinite Kitchen\' robotic assembly technology is a core asset, with Sweetgreen planning for 20 new locations featuring it in fiscal year 2025, alongside 2 relocations and 1-3 retrofits of existing restaurants.

The Infinite Kitchen system is designed to fulfill roughly 500 orders per hour and offers an estimated 800-basis-point margin advantage over traditional sites by year-end 2025, broken down into 700 basis points from labor savings and 100 basis points from improved Cost of Goods Sold (COGS).

Sweetgreen, Inc. maintains strong brand equity centered on health, quality, and sustainability, reflected in a January 2025 guest survey showing 90% of customers had a positive overall experience at Infinite Kitchen locations.

The owned digital platform, comprising the app and website, drove 61.8% of Total Digital Revenue for Q3 2025, up from 55.1% in Q3 2024.

The restaurant network reached over 251 locations across the United States as of Q1 2025, with 5 net new restaurant openings reported in that quarter, growing to 266 locations as of Q3 2025.

Customer data is leveraged from the SG Rewards program, which launched nationwide in April 2025 to replace the former Sweetpass structure, with the transition impacting the Q3 2025 Same-Store Sales Change of (9.5)%.

Here's a quick look at some key metrics as of late 2025:

The SG Rewards program structure provides data points through its earning mechanism:

• Members earn 10 points for every $1 spent on eligible purchases.
• Points cannot be earned through any third-party platforms.
• New members received 1,000 bonus points on their first eligible purchase in April 2025.
• The program is designed to drive digital engagement via the App and Website.

The technology deployment schedule for the Infinite Kitchen is aggressive:

• The goal for fiscal year 2025 was to have 40 total locations featuring the technology.
• This compares to 12 Infinite Kitchens operating by the end of 2024.
• The technology is projected to deliver at least 7 percentage points in labor savings.
• The system is designed to improve COGS by 1 percentage point.

Sweetgreen, Inc. (SG) - Canvas Business Model: Value Propositions

You're looking at the core things Sweetgreen, Inc. offers its customers as of late 2025. It's about the food quality, the speed you get it, and the story behind the ingredients.

Fresh, healthy, and customizable salads and warm bowls.

The menu centers on unprocessed ingredients, featuring over 30+ plants that remain whole until the team starts chopping them. The brand emphasizes a plant-forward menu, which is inherently less carbon intensive than the average American diet. To enhance the perceived value, management has been reviewing menu architecture, including increasing protein portions, for example, by 25% for chicken and tofu in some updates.

Speed and convenience for busy urban professionals via digital ordering.

Digital ordering is a massive part of the business now. For the third quarter of fiscal year 2025, the Total Digital Revenue Percentage hit 61.8% of total sales. Within that, the Owned Digital Revenue Percentage stood at 35.3%. This focus on digital channels helps manage throughput, which is key for urban speed.

Here's how the digital mix has trended:

The Average Unit Volume (AUV) for the trailing four quarters ending Q3 2025 was $2.8 million.

Transparency and commitment to locally sourced, high-quality ingredients.

Sweetgreen, Inc. builds trust by focusing on where food comes from. They have a stated commitment to become carbon neutral by the end of 2027. The brand has historically built a network of more than 200 food partners, including farmers, organizing its supply chain into regional distribution networks. Consumer sentiment supports this focus, with 44% of consumers prioritizing restaurants that use locally sourced ingredients, and 72% willing to pay more for sustainable options. The company's restaurant-level margin in Q3 2025 was 13.1%, while the industry average profit margin for 2025 is cited at 8%.

Consistent, accurate orders from the automated 'Infinite Kitchen' system.

The 'Infinite Kitchen' technology is a major operational value driver. These automated makelines can fulfill roughly 500 orders per hour. Locations using this system have demonstrated operational benefits, including at least 7 percentage points in labor savings and a 1 percentage point improvement in COGS compared to traditional stores. Furthermore, a guest survey conducted in January 2025 showed that 90% of customers reported a positive overall experience at Infinite Kitchens, which includes food and ingredient quality. The first retrofitted location showed restaurant-level margins of 31% and a 45% lower turnover rate than a traditional site. For fiscal year 2025, the company planned for 18 of its 37 net new restaurant openings to feature the 'Infinite Kitchen'.

Premium, aspirational fast-casual dining experience.

The brand aims for a premium feel, which is reflected in its pricing power and unit economics relative to the sector. The restaurant-level profit margin for Q3 2025 was 13.1%, which is significantly above the cited industry average of 8% for 2025. Loyalty program members, who get early access to seasonal items, show a 30% higher transaction frequency. The company's fiscal year 2025 revenue guidance is set between $682 million to $688 million.

Sweetgreen, Inc. (SG) - Canvas Business Model: Customer Relationships

You're looking at how Sweetgreen, Inc. keeps its customers coming back, which is crucial given the recent traffic dips. The focus is heavily on digital integration and making the in-person experience count.

Automated, data-driven engagement via the SG Rewards loyalty program

The shift to the SG Rewards loyalty program, which started in April 2025, is central to their automated engagement strategy. This points-based system, where members secure 10 points per eligible dollar spent, replaced the old tiered subscription model. The immediate uptake has been strong; the program has been adding approximately 20,000 new loyalty members per week since its launch. This digital push is backed by significant investment, with marketing spend for the SG Rewards loyalty program hitting $7.4 million in Q1 2025 alone. The goal is clearly to convert transactions into trackable data points.

High-touch, in-store hospitality from team members (especially in non-IK stores)

While technology drives volume, the in-store experience remains vital, especially in locations without the newest automation. The Average Unit Volume (AUV) for the comparable restaurant base was $2.8 million in Q3 2025, a slight dip from $2.9 million the prior year. To maintain this level of performance across the growing footprint, which reached 266 locations by Q3 2025, operational consistency is key. A major internal push, Project One Best Way, has improved the portion of restaurants meeting internal standards from one-third to approximately 60%, which directly impacts the quality of that in-person hospitality.

Personalized promotions and offers based on order history and segmentation

Sweetgreen, Inc. is leveraging the data gathered from its digital channels to drive targeted offers. Management has explicitly stated plans to expand personalized offers to boost traffic and retention. This isn't new; a past, highly successful digital-only promotion (the Naomi Osaka Bowl) forced app downloads, leading to a surge past 2 million app downloads and building a rich CRM database that they still use today. More recently, SMS promotions using unique promo codes drove over 10k new SMS subscribers and achieved 10% conversion rates.

Open-kitchen design fostering transparency and trust

The company is embedding technology that doubles as a transparency feature through its Infinite Kitchen (IK) rollout. For fiscal year 2025, at least 20 of the 40 planned new restaurant openings are slated to feature this proprietary automation system. Early data suggests these IK locations can achieve 10-15% higher sales per square foot, which speaks to their efficiency in handling customer demand. This technology, which speeds up assembly, supports the brand's commitment to fresh, made-from-scratch food by ensuring speed doesn't compromise quality perception.

Here is a snapshot of key customer-facing metrics as of late 2025:

Sweetgreen, Inc. (SG) - Canvas Business Model: Channels

You're looking at how Sweetgreen, Inc. (SG) gets its food and digital orders to the customer as of late 2025. It's a blend of physical presence and heavy digital integration, so let's look at the hard numbers for each path.

Physical Restaurant Locations

The brick-and-mortar footprint is still central, though the pace of expansion has been strategic. As of November 10, 2025, Sweetgreen, Inc. operated 909 restaurants across the United States in 26 states and territories. This is up from the 260 locations reported at the end of Q2 2025, and the 266 locations reported at the end of Q3 2025. The company had a fiscal year 2025 plan to open at least 40 new restaurants.

The concentration of these physical channels shows where the brand is most established:

• New York: 177 restaurants (about 19% of the total).
• California: 160 restaurants (about 18% of the total).
• Massachusetts: 120 restaurants (about 13% of the total).
• District of Columbia: 109 restaurants (about 12% of the total).

Digital Ordering and Third-Party Fulfillment

Digital is a massive part of the business now, making up the majority of revenue. For the third quarter of fiscal year 2025, the Total Digital Revenue Percentage reached 61.8% of total revenue.

This digital mix breaks down between orders placed directly through Sweetgreen, Inc.'s own platforms and those routed through external partners. Here's the breakdown from the latest reported quarter:

The Owned Digital Revenue Percentage-which covers the Sweetgreen app and website-was 35.3% in Q3 2025. The remaining portion of digital revenue, which is orders from platforms like DoorDash, Uber Eats, and Postmates, was approximately 26.5% in that same quarter.

In-Store Kiosks and 'Infinite Kitchen' Technology

Sweetgreen, Inc. is heavily investing in automation through its 'Infinite Kitchen' concept, which utilizes in-store kiosks for ordering. For fiscal year 2025, the plan was for 18 of the expected 40 new restaurants to feature the Infinite Kitchen technology. This was intended to bring the total number of these automated locations to 33 by the end of 2025, nearly triple the 12 units running at the end of 2024.

The performance metrics for these tech-enabled locations are quite specific:

• Throughput capability: Roughly 500 orders per hour.
• Margin advantage: At least 800-basis-point improvement over traditional sites.
• Labor savings: Approximately 700 basis points of the margin advantage comes from labor efficiencies.
• Guest satisfaction: 90% of surveyed customers reported a positive overall experience in January 2025.

You can see the direct impact of this channel strategy on the unit economics.

Sweetgreen, Inc. (SG) - Canvas Business Model: Customer Segments

You're looking at the core groups Sweetgreen, Inc. targets to drive its revenue, which as of the trailing twelve months ending September 30, 2025, stood at $685M. The customer base is highly specific, leaning heavily on demographics that value premium, fresh ingredients.

The primary segment is definitely health-conscious Millennials and Gen Z. Data from 2024 showed that 62.4% of their customers were aged 18-34. Still, recent economic pressures are hitting this group; in the third quarter of fiscal year 2025, the company saw an 11.7% decrease in traffic, signaling that price sensitivity is a real near-term risk for this core cohort.

The next group consists of affluent urban and suburban professionals. The location profile Sweetgreen, Inc. targets historically reflects this with high earning potential. Here's the quick math on the profile near a typical location, based on 2019 data:

The commitment to sustainability and ethical sourcing is a key value driver for these customers. Sweetgreen, Inc. has a public goal to become carbon neutral by the end of 2027.

The final segment involves business-to-business sales through corporate catering clients seeking office meal solutions. This is captured within the Outpost and Catering Channel revenue stream.

You can see the key characteristics of these customer groups below:

• Health-conscious Millennials and Gen Z (62.4% of customers aged 18-34).
• Affluent urban and suburban professionals seeking convenient, quick lunch/dinner.
• Corporate catering clients for office meal solutions.
• Customers prioritizing sustainable and ethical food sourcing.

Digital engagement is also a major factor in how these segments transact; Total Digital Revenue was 61.8% in Q3 2025. Finance: draft the 13-week cash view by Friday.

Sweetgreen, Inc. (SG) - Canvas Business Model: Cost Structure

You're looking at the core expenses Sweetgreen, Inc. is managing right now to keep the lights on and the salads fresh. Honestly, for a company focused on growth and innovation, controlling these fixed and variable costs is where the real battle is won or lost. We need to see where the dollars are actually going based on their latest reported figures.

Here's a quick look at the major cost components as a percentage of Sweetgreen, Inc.'s Q1 2025 revenue, which totaled $166.3 million.

The biggest variable cost, Food, Beverage, and Packaging, came in at 26.5% of revenue for Q1 2025, which was actually an improvement from the prior year period due to distribution savings and favorable contract pricing on key ingredients. Labor, which is always a pressure point in the industry, held steady at 28.9% of revenue for that same quarter.

Now, let's talk about the big investment Sweetgreen, Inc. is making in automation, which hits the capital expenditure side of the structure. You've got to factor in the cost to deploy the 'Infinite Kitchen' technology, which carries a significant upfront price tag:

• High capital expenditure for 'Infinite Kitchen' deployment: an incremental cost per unit estimated between $450,000 to $550,000.

This investment is intended to drive down future labor costs, but the initial outlay is substantial. It's a classic trade-off: high CapEx now for expected operational leverage later.

On the fixed overhead side, Occupancy and Related Expenses were 9.4% of Q1 2025 revenue. Separately, you should note a significant structural change Sweetgreen, Inc. made to its Selling, General, and Administrative (SG&A) expenses by divesting its Spyce business. This strategic move is projected to deliver substantial annual savings, which directly impacts the overhead structure.

Here are the details on that G&A optimization:

• General and Administrative (G&A) costs are expected to be reduced by $8 million annually following the Spyce sale.

Finance: draft 13-week cash view by Friday.

Sweetgreen, Inc. (SG) - Canvas Business Model: Revenue Streams

You see the revenue streams for Sweetgreen, Inc. (SG) are heavily weighted toward digital channels, which is a key part of their current strategy. Direct sales from in-store and kiosk orders still form a substantial base, representing the remaining portion after digital transactions. For instance, in the third quarter of fiscal year 2025, total revenue hit $172.4 million, and the non-digital portion was about 38.2% of that total.

The digital side is where the growth focus is, with a significant portion coming through owned channels. The company reported that Total Digital Revenue accounted for 61.8% of Q3 2025 revenue. This is defintely a shift from prior periods, showing how much customers rely on the app and website for ordering.

Here's a quick look at the revenue composition based on the Q3 2025 figures we have:

Third-party delivery sales operate on a commission basis, which is a separate revenue stream from the direct-to-consumer digital orders processed through the company's own platforms. In Q3 2025, this channel brought in revenue equivalent to about 26.5% of the total revenue, or roughly $45.76 million based on the reported total.

Looking ahead and at recent pricing actions, the revenue picture includes these key data points:

• Direct sales from in-store and kiosk orders.
• Owned digital sales (app/website), accounting for 61.8% of Q3 2025 revenue.
• Third-party delivery sales (commission-based revenue).
• Projected total revenue for FY 2025 is between $682 million and $688 million.
• Menu price increases, which contributed a 3.4% benefit to Q1 2025 same-store sales.