Hybrid or totally remote labour has hurt urban eateries that rely on office workers. Fast-casual companies that dominated city centres are facing decreasing sales.
Sweetgreen, a popular lunch spot, will lay off workers due to sluggish sales.
Irregular urban rebound" following the epidemic slowed sales growth for the Los Angeles-based company. To return to profitability, the corporation will lay off 5% of its workers.
Summer is generally Sweetgreen's strongest season, but sales weren't up. The corporation initially saw the sales downturn around Memorial Day and lowered its forecasts.
Sweetgreen will relocate its support centre as part of its new plan. The business predicts same-store sales of 13% to 19% this year, below the predicted 26%.
Before the epidemic, fast-casual was moving to suburbs. It still has a large presence in these regions but is migrating away from dense centres.
Our footprint was 65% urban, 35% suburban in 2019." 50/50. Our urban restaurants had an AUV of $3.1 million while our suburban eateries had $2.7 million.
Urban SUVs are now $2.7 million and suburban EVs are $3.1 million.