D.C.-based VC fund Revolution Growth is leading an $18.5 million round of investment in fast-casual salad chain Sweetgreen. The investment will go mainly toward expanding Sweetgreen to the West Coast and boosting other programs run by the restaurant chain. Right now there are 27 Sweetgreen restaurants located up and down the Eastern Seaboard.
"Sweetgreen is quickly emerging as the place of choice for people looking for fresh, seasonal, and locally sourced food - and in the process is building a lifestyle brand with meaning and purpose," said Revolution Growth partner Steve Case in a statement. "We look forward to continuing this journey as sweetgreen continues to expand on the East Coast, and prepares to open in California next year."
Sweetgreen's recent growth, including five new stores in the last year, has been fueled in part by previous investments from Revolution like a $22 million round last year. Clearly Case and the rest of the Revolution team are feeling pretty bullish about the popularity of salads and healthy food options. The chain will open two new locations in Los Angeles early next year. In particular, the farm-to-table ambitions of the restaurant, built on its relationship with local farms, will benefit from the funding as it builds up the supply chain.
"The words ‘seasonality’ and ‘fast food’ are rarely used together, but at sweetgreen, we believe that the two don’t have to be mutually exclusive – it just takes a commitment to standing behind our food ethos and working with farmers that share the same values," said Sweetgreen co-founder Nicolas Jammet. "It takes an investment in both people and in supply chain systems. And it takes customers who appreciate the transparency of food regardless of the occasion."
Revolution has had a real taste for food startups. Along with Sweetgreen it has put its money into a food delivery startup and a company that works to get healthy food to students across the country who might not normally have access.
Sweetgreen will also use the new funding for technological growth. A quarter of all its transactions go through its mobile payment app, and the company is launching a mobile online ordering system next month. If its success matches its goals, this probably won't be the last time Revolution invests in the company.
"We are honored and grateful for Revolution Growth’s continued support, which will enable us to bring sweetgreen, our seasonal menu, and our lifestyle – the "sweetlife" – to new cities across the country,” said Jonathan Neman, another co-founder of Sweetgreen. "As sweetgreen grows from a regional to national brand, we will continue to differentiate ourselves with unmatched commitment to innovation and social responsibility."
