Dive Brief:
- Salad and Go plans to close 41 restaurants in two states, CEO Mike Tattersfield said Wednesday in an emailed statement.
- The brand, which had 140 company-owned units as of spring, will shutter all restaurants in the Houston, Austin and San Antonio, Texas, markets, along with a couple of stores in the Dallas area and Oklahoma. Closures are likely to start on Friday, when all Houston locations will be shuttered, according to Chron.
- The drive-thru salad chain had been on a rapid growth tear, doubling its store count over the past two years, and in 2024 it opened a central kitchen facility in Garland, Texas, that could support 500 restaurants.
Dive Insight:
The closures will allow Salad and Go to concentrate its efforts on remaining units and “strengthen the brand and invest more in improving quality,” said Tattersfield. The former Krispy Kreme CEO joined the chain in April following Charlie Morrison’s departure.
“Our presence in Texas will remain strong in Dallas,” he said. “We are reducing our footprint in Houston, Austin and San Antonio to allow us to focus on strengthening the Dallas Metro Area and Oklahoma. We continue to believe in the Texas market and its long-term potential.”
The chain will continue operating its locations in Phoenix and Tucson, Arizona and Las Vegas, he said.
“While this moment is difficult, we know the change will ultimately give us the foundation we need to grow stronger,” Tattersfield said.
This move is likely part of Tattersfield’s strategy to have more disciplined growth and to focus on finding the best real estate to meet customers where they are — a plan he outlined to QSR Magazine in May. At the time, Tattersfield envisioned a broader off-premise strategy with delivery and even catering. The company also has a strong value proposition with salads priced under $10. It also offers breakfast burritos and wraps.
A handful of other chains have been closing stores to create stronger systems, including Denny’s, Jack in the Box, Noodles & Company and Red Robin. And while Portillo’s isn’t closing stores, the hot dog chain is slowing down its development after underperfoming at Texas locations. The Salad and Go closures may not keep the chain from new markets. In May, Tattersfield told QSR Magazine that he sees more potential for growth in the Southwest and eventually the Southeast and California.
