Although salad chains have been a staple in coastal metro locales, there is now a push to open health-minded dining brands in more Midwest and Southern territories. This is due in part to the migration of Americans that have also relocated to these states for various reasons. It is also because of the growing fitness/wellness movement that continues to dominate as a national trend, especially in new markets that are just now grasping onto the health craze.
Look for suburban areas in close proximity to Midwestern and Southern cities to be especially hot targets for growth, as well as college towns with a large number of Gen Z-ers — an age bracket that is especially mindful of eating healthy. The latest trend is for these salad chains to offer quick-service options, oftentimes via a drive-thru configuration, in order to appeal to suburban and fitness-minded consumers who want a convenient/quick meal option akin to a traditional fast-food drive thru. These salad concepts can fit in any number of real estate spaces, as most of these establishments do not require vent hoods. The brands that are particularly bullish with growth include Crisp & Green, Chicken Salad Chick, Sweetgreen, Salad and Go and Green District Salads.
The Crisp & Green fast-casual franchise has lofty goals of hopefully opening up to 1,000 units by early 2025, which would amount to approximately 20 to 30 new units per year in each of the states the brand is targeting over the next three years. This is due to its aggressive franchise focus under the management of Steele Brands, which has also been responsible for the growth of 9Round and YogaFit. The states expecting units in 2023 include new ones for Crisp & Green, such as New York (specifically New York City), Arizona, Kansas, Arkansas, Missouri, Tennessee, New Jersey, Iowa, Illinois, North Carolina, Montana and Wisconsin. Future growth will also continue in states where Crisp & Green already has a presence, including Utah, Florida, Colorado, Nebraska, the Dakotas, Texas and Minnesota.
Crisp & Green targets space between 2,000 and 3,000 s.f., preferably an end cap or a standalone pad building, in all manner of sites: retail street front, ground floor of mixed-use buildings, strip centers, power centers, grocery-anchored centers, lifestyle centers and even airport units. The site can be either an urban or suburban setting, but the location should be on a busy street near high-traffic, non-competing food and retail tenants, such as Chipotle, The Cheesecake Factory, Target or Starbucks. Health co-tenants are also desired, including Orangetheory Fitness. Sites near a college are also ideal. Crisp & Green is famous for its made-from-scratch signature salads.
The Atlanta-based Chicken Salad Chick plans to open between 60 and 70 new units per year over the next three to four years. Expansion will be particularly strong in Midwest markets, with Illinois and Ohio targeted for major growth. New Midwest states for the brand will also expect their first units, such as the suburban towns within the metros of Iowa, Missouri, Kansas and Nebraska. Chicken Salad Chick will also continue to open new units in Texas (especially in Austin and San Antonio) and Colorado.
The chicken salad chain prefers space in the 2,700- to 2,800-s.f ballpark, in family friendly regional shopping centers with a large number of female shoppers. Space can be inline, as well as end cap or standalone for drive-thru configurations. Patio space is preferable. Ideal co-tenants are those that attract women customers, such as T.J. Maxx or ULTA Beauty. Chicken Salad Chick is known for its wide variety of chicken salad choices that can be served in a bowl, by the scoop or as a sandwich.
Sweetgreen anticipates opening between 35 and 40 new restaurants per year over the next five years. Look for growth to be concentrated in all regions, with continued expansion anticipated in the suburbs of major metros of states where the brand first entered in 2022, including Indiana, Minnesota and Michigan. Sweetgreen will also continue to grow in Texas, especially throughout Dallas/Fort Worth, as well as in Colorado and Florida, especially in Orlando and Miami. As for future growth, Sweetgreen is eyeing spaces in new territories such as Nashville, Tenn., Charlotte, N.C., Charleston, S.C., Cleveland, Long Island, N.Y., Bucks County, Pa., Wichita, Kan., and the metros of Wisconsin, Arkansas and Kentucky. Further growth in western markets is also being scouted, such as Boise, Idaho, Las Vegas and San Diego.
Ideally Sweetgreen seeks space in the 2,000- to 3,500-s.f. range for its fast-casual set up, but exceptions can be made. For example, the chain has opened in spaces as large as 7,665 s.f., such as its unit on the ground floor of an office building in New York City, and in October the brand opened its first 2,190-s.f. pickup-only/digital-only unit in Washington, D.C., also on the ground floor of an office building. In addition to ground floor of mixed- use buildings and retail street-front units, Sweetgreen also considers space — preferably end caps — in power centers and lifestyle centers. In November, the brand opened its first drive thru in a 1,325-s.f. standalone unit on an outparcel of an office building. The drive-thru features Sweetlanes, drive thrus specifically for pre-ordered meals, in the same vein as the Chipotle Chipotlanes. A second drive thru is rumored to be opening in Highland Ranch, Colo., in 2023. Although Sweetgreen works well in business district locations, the salad brand has been targeting suburban spots and college towns over the past two years to much success. Preferred co-tenants include higher end eatery/beverage brands, including Philz Coffee and Crumbl Cookies, and fitness brands, such as Equinox. Sweetgreen, which went public in October of 2021, is known for its freshly prepared salads and grain bowls made with locally sourced organic ingredients.
The Arizona-native Salad and Go continues to press on with expansion, with a goal of opening between 80 and 90 new units in 2023, and hopefully continuing that trajectory into 2024 and beyond. The drive-thru salad chain hired a new CEO in 2022, the former CEO of Wingstop, in order to boost expansion efforts. Salad and Go expanded into its third state last year with two units in Oklahoma City, and will continue to grow in that state, as well as in Arizona and in Texas, specifically Dallas/Fort Worth, Houston and San Antonio. Salad and Go is also going to open units this year in Las Vegas, and rumored new territories being eyed for expansion include Denver, Miami, Atlanta, New Orleans, Albuquerque, N.M., Louisville, Ky., and Southern California.
Salad and Go seeks pad sites between 25,000 and 50,000 s.f., near gas stations and convenience stores, such as Circle K, for its prototype drive-thru buildings. End cap drive-thru units will also be considered. The site should be close to a busy street with strong daytime traffic and can share parking lot space with a power center, regional center or grocery-anchored center. Urban neighborhoods, as well as suburban communities near business parks or universities are preferred. Co-tenants can include budget-conscious brands, such as Walmart or Five Below, as its salads are offered at reasonable prices, but higher end trendy brands also work well as co-tenants, such as Sephora or Warby Parker. Other preferred co-tenants include quick-service food brands, such as El Pollo Loco. Salad and Go is known for its affordable salads, as well as wraps, soups and breakfast burritos, all geared to the budget-minded customer seeking quick-yet-healthy food.
Green District Salads is planning to open approximately 25 new units per year over the next three years. Green District Salads, which continues to grow its presence in Ohio, Indiana and Kentucky, is also pressing West, opening multiple restaurants in Utah, Colorado and Arizona. Green District is also planning to expand into Southern Florida, as well as Nashville, and is open to scouting out Illinois and Texas for future growth. The brand, which is testing out drive-thru restaurant formats in two locations that opened in late 2022 in Colorado Springs, Colo., and Salt Lake City, generally seeks space in the 1,500- to 2,200-s.f. range, in all types of real estate such as standalone buildings, street fronts, inline or end caps of a strip mall or a neighborhood center. Both urban and suburban areas are sought after, and co-tenants should be higher end fast-casual restaurants, such as Five Guys. The Green District franchise is known for its 11 signature salads and wraps.
