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Tuesday, Aug 16, 2022

Sweetgreen Sets $150 Million Raise

Culver City-based salad chain Sweetgreen, a popular lunch spot for the health-conscious set, raised $150 million, boosting its valuation to $1.6 billion.

Sweetgreen Inc. will use the cash infusion to build a delivery service that’s due to launch next year; expand its restaurant footprint; and build up its Outpost program, which brings food to corporate kiosks, the company said in a Sept. 23 announcement.

The funding round, led by Lone Pine Capital and D1 Capital Partners, brings total venture capital raised by the chain to $500 million.

Founded in 2007 by three friends frustrated by the lack of healthy food around Georgetown University’s campus, Sweetgreen has heavily leveraged technology. More than half of all orders at the restaurant are made online, according to the company. Last year, it laid out plans to invest in blockchain technology to bolster its supply chain operations.

Sweetgreen has also placed an emphasis on its Outpost program — an off-site pickup area near offices. Customers can place custom orders for pick up at the kiosks.

“This foundation will allow us to push boundaries and broaden our impact,” co-founder and Chief Executive Jonathan Neman said in a statement.

Sweetgreen plans to add restaurants in Miami, Denver and Austin as it looks to develop its delivery service. In June, The minimalist chain acquired Washington D.C.-based meal delivery service Galley Foods Inc. for an undisclosed amount.

Sweetgreen has plans to move its headquarters to a new 50,000-square-foot location in West Adams.

Manufacturing, retail and trade reporter Rachel Uranga can be reached at ruranga@labusinessjournal.com or (323) 556-8351. Follow her on Twitter @racheluranga.


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