Dive Brief:
- Salad and Go is shutting operations in Texas and Oklahoma, CEO Mike Tattersfield said in a statement emailed to Restaurant Dive. The decision will result in the closure of 32 restaurants, according to the current units shown on its website for these two states.
- The decision will allow Salad and Go to “refocus on strengthening our core operations in Arizona and Nevada,” he said.
- These closures come about five months after it shuttered 41 restaurants in Houston, Austin and San Antonio, Texas, as well as additional stores in Dallas and Oklahoma.
Dive Insight:
Salad and Go grew to about 140 company-owned restaurants as of last spring, but the two rounds of closures have left it with 63 units in Arizona and seven in Nevada, according to its website.
Tattersfield joined the chain last April and has been focusing on improving operations following massive expansion plans in the early 2020s.
He told the Phoenix Business Journal that the chain’s expansion into Texas was “flawed” because it necessitated a large central kitchen to support hundreds of restaurants. The kitchen created a huge burden on Salad and Go. Tattersfield also said the initial round of closures was related to locations he considered were in bad real estate.
“By consolidating our operations at our Phoenix area headquarters, we can focus on what matters most: food quality, menu innovation, guest experience and building for long-term growth,” he wrote. “This strategic focus positions us to strengthen our brand and ultimately, grow again when the time is right.”
The company will invest in its remaining Arizona and Nevada stores and could add new menus in the near future, he told the Phoenix Business Journal. In December, the chain rolled out its first sweet treat with the launch of its Chewy Marshmallow Bar as well as additional beverages like a Toasted Marshmallow Lemonade, Toasted Marshmallow Cold Brew and cold foam that can be added to any drink, according to an email sent to Restaurant Dive.
Salad and Go isn’t the only QSR chain to close stores within the last few months. Sprinkles closed all of its company-owned bakeries at the end of last year. Wendy’s is planning to close hundreds of underperforming restaurants after a strategic review of its portfolio. Starbucks closed 400 restaurants last year. Sweetgreen has also struggled with profitability and posted some of the worst same-store sales numbers last year.
