Popular fast food chain warns of more closures in 2026

Food trends seldom past forever. From TV dinners successful the 1950s to frozen yogurt successful the 2010s, and astir recently, build-your-own crockery and macromolecule bowls, user tastes thin to displacement quickly.

For edifice chains, failing to germinate alongside changing preferences tin pb to declining sales, store closures, and, successful immoderate cases, adjacent bankruptcy, particularly for brands built astir a azygous category.

That situation is becoming progressively disposable for Sweetgreen.

The institution has begun closing locations arsenic it works to set its strategy pursuing slowing income and rising costs.

Sweetgreen shuttered 3 restaurants successful 2025 that were nearing the extremity of their leases, and further closures are expected successful 2026.

Founded successful 2007, Sweetgreen present operates much than 300 locations crossed the U.S. and went nationalist successful precocious 2021, during the surge of capitalist involvement successful fast-casual edifice brands.

Just a fewer years ago, the institution revealed ambitious enlargement plans to scope 1,000 units by the extremity of 2030, pledging to unfastened astatine slightest 35 caller restaurants successful 2022 alone.

At the time, Sweetgreen operated 166 company-owned restaurants crossed 13 states and Washington, D.C., arsenic of June 26, 2022, according to its 10-Q filing.

Leadership appeared assured that the enlargement was connected track.

"The assurance truly comes from the information that leases are being signed and deals are successful construction," said Sweetgreen CEO Jonathan Neman during an net call. "We person a precise healthy, robust pipeline adjacent twelvemonth with immoderate large sites, large deals and galore leases already signed."

However, by the extremity of 2025, that optimism began to slice arsenic the institution faced slowing income and rising operating costs.

Sweetgreen (SG) has confirmed the imperishable closure of its Crystal City edifice astatine 2022 Crystal Drive successful Arlington, Virginia, aft serving customers successful the country for a decade, according to section media outlet ARLnow.

Despite the closure, Sweetgreen inactive operates 14 locations crossed Virginia, including 4 successful Arlington County, according to its store locator.

• Pentagon City: 575 12th Rd South (about 1 mile away)

• Rosslyn: 1800 N Lynn St (about 3.4 miles away)

• Clarendon: 3100 Clarendon Blvd (about 4 to 5 miles away)

• Ballston: 4075 Wilson Blvd #C (about 5 to 8 miles away)

Sweetgreen's latest fiscal results missed expectations, underscoring the challenges it present faces.

In the 4th fourth of 2025, gross declined 3.5% twelvemonth implicit year to $155.2 million, with same-store income down 11.5%, according to the company's net report.