Sweetgreen is trying to put a lot of technology into its operation, but with this comes huge R&D overhead and implementation expense. Also, its decentralized supply chain will also create more costs for labors and logistic.
The actions sweetgreen made to cutting back expenses are seemingly effective. In 2023 Q2, Sweetgreen reported 27.3 million dollars net loss, compared to 40.5 million last year.
Not being profitable cannot say that it will lose investors. After all, sweetgreen has been around for nearly 20 years, so it must have done something that investors are satisfied with, and that in my opinion is the innovation it is doing.
AI and automation technologies will surely change our future world, and using them in food business is a really innovative move. It will take time for these innovations to turn into profit, but relying fully on innovation cannot bring cash to the business. So, a balance between these 2 aspects must be made so that we can secure both the present and the future
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