Sweetgreen, an american fast casual restaurant that serves salads, revealed Monday it had confidentially filed for an initial public offering. The company is confident in the rising demand for plant-based foods and potential solid investors.
The chain, founded in 2007, has over 100 locations within the United States and is viewed as a healthy and speedy food option. Amid the ongoing coronavirus pandemic and the rise in its online sales, the company has decided to go public. It is currently valued at USD1.8 Billion following a funding round at the beginning of the year, as stated in media reports.
As people seek to consume more healthy and environmentally-friendly food, investors have gained interest in the sector. The majority of demand is led by millennials and generation Z buyers who are willing to pay for sustainable and healthy items. According to sweetgreen’s website, 65% of Gen Z consumers are pro plant-based foods.
Sweetgreen had been inclined to boost online sales before the health crisis and invested in creating a mobile app as a means of simplifying picking up digital orders and reducing long lines and wait times. Furthermore, the covid pandemic accelerated the company’s plans to build drive-thru lanes at select locations as it makes its way into the suburbs. The pilot restaurant will launch this winter in Highlands Ranch, Colorado.
In 2020, plant-based retail sales within the United States reached USD7 Billion, a 27% rise year-on-year, according to a report by the Good Food Institute and the Plant-Based Foods Association (PBFA).