Nathaniel Ru Makes Sweetgreen Profitable Through Economies of Scale

There is a growing need for more healthy eating alternatives. It is obvious that there is a large amount of growth in the health food industry, and Nathaniel Ru is capitalizing on this time in America by bringing forth a restaurant called Sweetgreen. This has become one of the most interesting health food restaurants in place today. People are excited about what this restaurant brings to the mainstream.

 

Nathaniel Ru knows that investors were excited, and this is a good thing for his establishment. He needed the money that investors brough forth because it is a huge undertaking to supply a restaurant such a Sweetgreen with a lot of fresh fruit and vegetables. In order to do this Nathaniel has to get connected with farmers. Most of his time is spent trying to devise a plan for new restaurants where he can strategically place the restaurant within close facility to farmers. That is how he is able to get fresh fruits and vegetables, but this can be costly.

 

This is where Nathaniel Ru puts a strategy in place where he has to maximize capital from investors to establish some type of economies of scale. On the front end Sweetgreen is a restaurant that is still selling meals that are just as affordable as extra value meal. On the back in there is a higher cost that is associated with the food that is being sold because he isn’t selling processed burgers or prepackaged fried; Nathaniel is selling fresh food. These items on the menu are fresh from farmers so there is going to be an added cost that comes with operations.

 

Sweetgreen is able to become profitable when the amount of customers that patronize these establishments outweighs the cost of buying in bulk. When Nathaniel is able to purchase larger quantities of food he is able to get more items at lower costs. This, in return, gives customers a chance to get quality fresh fruits and vegetables as part of their meals. This is better than paying the high cost of what it would be to prepare these items in their homes themselves. Learn more: http://www.psfk.com/2016/04/psfk-2016-how-sweetgreen-brought-healthy-and-delicious-to-the-busy-psfk-2016.html

 

It’s an interesting concept for someone like Nathaniel to bring this type of creativity and healthy eating to a mainstream platform. Many kids may have scoffed at the ideal of healthy eating, but Sweetgreen has managed to create a certain sense of coolness about healthy foods. Learn more: https://www.linkedin.com/in/nathaniel-ru-b04a7310