Dive Brief:

• Sweetgreen on Monday launched a two-tiered loyalty program, which includes free and paid subscriptions, nationwide, the company said in a press release.
• The fast casual chain began a “phase rollout” of the platform, called Sweetpass, in February in Colorado, CEO Jonathan Neman said during a February earnings call. 
• In 2022, Sweetgreen tested the subscription model as well as gamified consumer challenges and found that customers wanted new ways to earn discounts and access different experiences with the brand, the company said in the press release.

Dive Insight:

Sweetpass allows customers to earn rewards, access new menu items and limited-edition merchandise by opting for personalized challenges. Sweetpass+ costs $10 per month and offers members a $3 daily discount on orders. The subscription also includes “priority Sweetgreen support, delivery perks, premier access to merch drops, and exclusive Sweetgreen experiences,” the company said.

“What’s amazing about the subscription is we’re so uniquely positioned to make that work,” Neman said on the call. “We have a food that is healthy, that is naturally habitual and very high digital penetration, which gives us a lot of confidence in our Sweetpass loyalty program.”

The program also has the ability to shift diner demand to certain days, which can help the company drive sales on slower days like Mondays, he said. The rewards program could help further grow the company’s digital sales, which made up 62% of total sales last year. Two-thirds of those sales came from the company’s own digital channels, Neman said. 

Sweetgreen is also rolling out a new online merchandising store dubbed “The Market,” in which customers can purchase apparel, accessories and gear. The company will release its first collection this quarter with a series of weely merchandose drops, adding a new item each week. Sweetpass members will be able to access the shop first before it’s released to the public next month.

Subscription members will also be able to help the company choose a carbon reduction partner thought the Friends of Earth perk. At the end of the year, Sweetgreen will take into account customer feedback and pick a partner to donate to, the company said. 

Sweetgreen joins a growing list of companies rolling out more personalized regards programs within the past 12 months. Panera added the ability for loyalty customers to pick their rewards in September, while El Pollo Loco’s updated tiered rewards program allows customers to choose from three different rewards within four levels. Noodles and Company added daily perks for its rewards members earlier this month.