Sweetgreen’s CEO is beefing up protein portion sizes because corporate America is demanding more from $16 sad desk salads

The fast-casual salad chain announced significant changes to its this summer—a response to shifting habits in corporate America, where employees are less ly to order dery salads for solitary desk lunches, and are demanding more value for their dollar

The decision s months of disappointing sales: Same-store sales have dropped by as much as 7.6% this summer, with a reported 10.1% plunge in customer traffic

The stock has lost more than 70% of its value since January, and is trading well below its IPO price of $28. “So I think it’s pretty obvious that the consumer is not in a great place overall,” Neman said Thursday in the company’s second-quarter earnings call

Several factors have converged to force Sweetgreen’s hand

The biggest: Working habits have permanently changed since the pandemic

Corporate lunch orders, once the backbone of Sweetgreen’s urban , have slumped as office occupancy fluctuates and hybrid schedules persist

Affluent customers, long willing to shell out for digitally ordered salads, are now scrutinizing every expense as inflation pinches and economic uncertainty lingers. districts, once Sweetgreen’s prime locations, are no longer packed with lunchtime regulars

Instead, urban outlets now depend on local traffic and dinner orders—which require more substantial fare than a bowl of greens

Sweetgreen’s own consumer surveys reveal guests want more tein—the gravitational center of a “meal” that feels worth its ticket price

Slowing growth and mounting losses For the quarter June 29, Sweetgreen reported total revenue of $185.6 million, barely up from $184.6 million a year prior—an increase of just 0.5% and well below Wall Street expectations of $191.73 million

Traffic sharply deteriorated even as Sweetgreen raised prices, with executives citing a “more cautious consumer environment” and headwinds in urban where office lunch traffic remains weak

The company posted a net loss of $23.2 million, widening from a $14.5 million loss in the prior year, and reported adjusted EBITDA of $6.4 million—down by nearly half from last year’s $12.4 million

Neman cited drag from the revamped SG Rewards loyalty gram, which mpted fewer repeat visits; only one-third of Sweetgreen restaurants currently meet operational standards for speed and consistency

The firm recently hired former Chipotle executive Jason Cochran as COO to address issues ranging from portioning to speed across both digital and in-store channels

Management cautiously optimistic, but confidence shaken Despite the rocky performance, Sweetgreen is forging ahead with expansion, opening nine new restaurants (including four Infinite Kitchens) in Q2, and plans for at least 40 new openings this year—many featuring automation and lower labor requirements

Neman and CFO Mitch Reback stressed “actions taken are already showing positive results,” pointing to steady imvement in guest frequency from the revamped loyalty gram and enthusiasm for seasonal items

Still, the street remains skeptical

In recent weeks, Sweetgreen has expanded its repertoire with “tein plates”—larger servings of steak, chicken, or tofu over grains, aimed at winning dinner traffic and meeting customer demand for heartier offerings

For us, it’s healthier options that are still filling,” Neman said

Steak is sourced from grass-fed, regenerative farms to keep Sweetgreen’s sustainability ethos intact

Even as Sweetgreen tweaks its , reviews and ratings remain mixed

Some loyalists grumbled for months skimpy chicken portions

For this story, Fortune used generative AI to help with an initial draft

An editor verified the accuracy of the information before publishing

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