Healthy Choice QSR Sweetgreen files for IPO
The chain of health-conscious quick-service restaurants (QSR), Sweetgreen Inc., has confidentially filed for an initial public offering (IPO), the company said on a Monday, June 21. Press release. The Los Angeles-based startup said the number of Class A common shares for sale and the price range for them have yet to be determined.
The proposed IPO is now under review by the Federal Securities and Exchange Commission. Market conditions and other factors could further alter Sweetgreen’s plans.
Sweetgreen had been an IPO contender for years, Axios reported, claiming that the restaurant chain had not followed the Special Purpose Acquisition Corporation (SPAC) route to go public. A PSPC first goes public to raise funds, then looks for a takeover target.
The outlet said Sweetgreen, launched in 2007, would portray its health-conscious offerings as on the cusp of a consumer trend. With over 100 stores, Sweetgreen sees plenty of room for growth – think of an opportunity the size of Chipotle. Investors include: Revolution, T. Rowe Price, Red Sea Ventures, Collaborative Fund and Signatures Capital.
As the restaurant industry recovers from the economic crisis of the pandemic, many questions remain on the table. At the top: will delivery services have the power to stay on meals on site as the pandemic eases? Other: will fast-food restaurants have an advantage over fast-casual?
David bloom, director of development and operations for rapidly growing quick-casual chains Capriotti sandwich shop and Wing area, said its restaurants would be in the “sweet spot” to attract consumers. In a recent interview with PYMNTS, he said fast food QSRs would be relatively disadvantaged.
In fact, many restaurant chains have noticed high drive-thru sales during the pandemic, which they hope will continue. PYMNTS October Order to Eat Tracker®, created in collaboration with Paytronix, showed that driving tours accounted for 42% of all restaurant trips in the second quarter of 2020.
With that in mind, many leading QSRs have actually designed new stores that focus on drive-thru windows. Even Starbucks, which has historically positioned itself as a hangout, creates drive-thru-only stores that have no seats and are very small units, commented Rosalind Brewer, COO.