Sweetgreen is set to launch a revamped, points-based loyalty program in early 2025, following feedback that its previous tiered system—offering both free and paid subscription options—was overly complex.
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GLOSweetgreen is set to launch a revamped, points-based loyalty program in early 2025, following feedback that its previous tiered system—offering both free and paid subscription options—was overly complex. CEO and founder Jonathan Neman shared this update during the company’s recent earnings call.
According to William Blair analyst Sharon Zackfia, the new program will likely feature more frequent rewards, which may encourage greater customer engagement. Initially launched in 2023 as Sweetpass, the original program provided various perks, such as a $3 daily discount for a subscription fee of $10 monthly or $100 annually.
In rethinking its approach, Sweetgreen joins other brands like Domino’s, Krispy Kreme, and Red Robin, which have also simplified their loyalty offerings to deliver rewards more quickly and attract more members. For instance, Red Robin’s updated program, Loyalty 2.0, led to a noticeable increase in customer enrollment and visits.
Despite the initial positive response to Sweetpass during testing, customers ultimately found its structure confusing, resulting in lower-than-expected performance. Zackfia noted that while the new points-based system may not significantly boost same-store sales immediately, it could drive increased frequency over time.
Sweetgreen may also consider special promotional offers to incentivize return visits, similar to Chipotle’s occasional “Guac Mode” promotions. Zackfia suggested that Sweetgreen might use its new ripple fries—currently being tested—as part of these offers.
The brand is also experimenting with new menu items to boost customer frequency. Alongside ripple fries, Sweetgreen is testing sides, desserts, and drinks, and has recently introduced caramelized garlic steak, which has been well received as part of its fall menu. This addition, along with a focus on dinners and weekends, has supported stronger sales, especially in emerging markets like the Midwest, Texas, and the Southeast, where same-store sales saw double-digit growth.
In the third quarter, Sweetgreen reported 6% growth in same-store sales, driven by a 4% price increase and 2% traffic and sales mix growth.
Source: Restaurant Dive
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