Business
Sweetgreen’s CEO on Robots, RFK Jr. and Why Salads Are So Expensive
When Jonathan Neman was a student at Georgetown in the mid-2000s, he and some friends wanted to start a restaurant. A fast-food restaurant, but it would be healthy. And cool.
The documentary “Super Size Me” had made waves, and “we were going to be rejecting the fast food of the previous generation,” Mr. Neman said.
He and his business partners, Nicolas Jammet and Nathaniel Ru, opened the first Sweetgreen in 2007, on the edge of campus on M Street in Washington. As they expanded, they decided against franchising the brand, keeping control of every new location. Soon it became a buzzy millennial lifestyle brand. It sponsored an annual music festival. It went public in late 2021.
Sweetgreen now has more than 250 restaurants across the United States. The chain is known for its endlessly customizable salads — and for how quickly the cost of all those extra toppings and dressings can add up. (A recent lunch there cost me $16.28.)
The company also runs a growing number of locations that include what it calls the Infinite Kitchen, with salad-slinging robots that assemble bowls faster than human workers.
With great fanfare, Sweetgreen recently put fries on its menu — air-fried in avocado oil, to make customers feel better about adding a side of carbs to a salad. Much of its food is sourced locally, including avocados from California, which will limit the hit the company takes on tariffs, executives have told investors.
And Sweetgreen doesn’t cater just to office workers eating salads at their desks. Mr. Neman, 40, said he had heard that teenagers were “obsessed” with the salads, which wasn’t the case when Sweetgreen started. “The fact that they think that eating healthy is cool is something that we envisioned,” he said at his office in Los Angeles, where the company is now based.
Back in Washington, the Trump administration is also thinking about what goes into food. Health Secretary Robert F. Kennedy Jr., the standard-bearer of the “Make America Healthy Again” movement, recently declared that “sugar is poison” and pushed to ban artificial dyes in foods.
Some of those aims resonate with Mr. Neman, whose company worked with the former first lady Michelle Obama’s “Let’s Move” campaign. But he — like many other company leaders — is trying to talk about the company’s priorities (like eliminating seed oils) without being pulled into the polarized politics of the moment.
“We say we’re not red or blue, but we’re green,” he said.
This interview was condensed and edited for clarity.
Sweetgreen is all about healthy ingredients. Now, there is the “Make America Healthy Again” movement and R.F.K. Jr. pushing to ban artificial dyes in food. What are your thoughts on that?
As it relates to “Make America Healthy,” funny story: In 2016, during a festival, we had a campaign that was a joke, a play on “Make America Great Again.” We made “Make America Healthy Again” hats.
Wow.
We are on the team of anyone who wants to help make America healthier. Back in the days of the Obama administration, we partnered very closely with Michelle Obama.
With R.F.K. Jr., I’ll speak to the parts related to our world. I think bringing more transparency to our food system is great. I think some of those dyes are bad. Sweetgreen has never sold soda very intentionally. We’d make a lot more money if we did. A lot of people wish we did. We never have and I don’t think ever will.
We don’t like to get involved in the rest of it. So we’re not trying to insert ourselves politically, either me personally or as a brand.
Have you communicated with the White House about healthy foods?
We haven’t been directly involved at this point. But if there’s a place for us to help, we’re totally up for it.
There have been cuts at the Food and Drug Administration, which oversees food safety. Do you have any concerns around food safety in the U.S. right now?
I think some of the things I’ve seen could be a little bit alarming. Others seem great.
What are the things that concern you?
I’d want to be careful to have certain guardrails around food safety, for example. And to be careful that there are not any adverse impacts to moving too fast. But overall, I think more transparency around the food system, promoting more real food, getting rid of these artificial chemicals that are allowed in our food and removing any conflicts of interest in people that are regulating our food are all good things.
Let’s talk about the robots. Will they help with profitability?
Absolutely. So what we’ve seen is at the store level, the Infinite Kitchen adds at least seven points of margin. So if you look at our store, right now we’re about a 20 percent margin business. An Infinite Kitchen store should be at least seven points better.
So as more robots make more salads, can people expect prices to come down?
We are very conscious of making sure that Sweetgreen can be something for everyone. I think automation does give us a hedge as labor costs continue to go up, to be able to drive more value and offer that to our customer.
How much is too much to pay for a salad?
It really depends what you put in it. When you think about the cost of something, you have to sometimes think about the total cost. There’s the cost to you, but when you eat certain things, what’s the cost to your health? What’s the cost to the environment? People are paying not only for the quality of the taste in the food, but the fact that it’s made by hand, the fact that we pay our farmers and our team members fairly.
What’s your back story? Tell me about your parents and growing up in Los Angeles.
My parents immigrated here in 1979. They were Iranian Jews who came during the revolution. And that was a big part of my story growing up because I think about how fragile your life and reality can be.
I’m the oldest of four boys. Being Jewish is a big part of my identity. I’ve always been very connected to Israel and my Jewish faith and big family.
My dad has four siblings. They each have four kids, so 20 cousins. Shabbat every Friday. A lot of us Persian Jews came to Los Angeles during that time.
Entrepreneurship is really a part of the culture. Growing up, I knew very few people who worked for big companies. Everybody was a small-business owner in some way. My dad and his brothers worked together. They started a textile business.
I always knew I wanted to be in business. From a very early age my dad would take me to work with him. One of my earliest memories was that I’d want to put on a suit — because he put on a suit — and go to his factory and walk around.
You had this great network of entrepreneurs during the start-up process. Were you calling your dad?
I had a lot of mentors in the community, including my dad. Always was and still is. I always give my dad a lot of credit because I don’t think he expected me to go to Georgetown and then to, like, start a little salad shack.
What was it like to be an entrepreneur in Washington at that time?
Entrepreneurship has become a lot sexier over the past 20 years. At the time, especially at Georgetown, that wasn’t the culture. The cool thing was going to get a job in government or consulting or banking.
I got accepted to what I thought was my dream job, at Bain & Company, the consulting firm.
I would have had to leave D.C. The restaurant was up and running. I spoke to my partners, like what should I do? Should I stay? Should I go? They’re like, “It’s one restaurant now. Why don’t you go and get these skills and then see what happens?” I went and realized consulting wasn’t really for me, especially after being an entrepreneur.
Finally, it was actually a conversation with someone at Bain. I always remember this conversation because he’s like: “Listen, you have two big opportunities to take huge risks in your life. One is now. The other is after your kids are out of school. You don’t have anything to worry about right now.”
I remembered this phrase: “You can’t fall from the floor.”
Time for the lightning round. Do you have any secret Sweetgreen menu tips?
The big unlock to the secret menu is the mixing of dressings. Putting two together, like spicy cashew with a green goddess. You have this whole different experience.
Do you use A.I.? If so, what was the last question you asked a bot?
I do use A.I. a lot. The last thing I did was not a work thing. It was personal. I have two kids, a 2-year-old and a 4-year-old. I put a picture of them in and asked what they’re going to look like when they grow up. It has blown my mind because I can’t unsee it now.
What other C.E.O. do you admire?
I’d always looked up to Howard Schultz. I think what he did at Starbucks was amazing.
Do you work on a plane, or do you zone out?
I work a lot on the plane. It’s this amazing quiet time where I can do a lot of the work that I can’t do day to day.
How do you sign off your emails?
Usually just “JN.” If it’s a more inspirational message, I’ll write, “Onward.”
Business
U.S. Space Force awards $1.6 billion in contracts to South Bay satellite builders
The U.S. Space Force announced Friday it has awarded satellite contracts with a combined value of about $1.6 billion to Rocket Lab in Long Beach and to the Redondo Beach Space Park campus of Northrop Grumman.
The contracts by the Space Development Agency will fund the construction by each company of 18 satellites for a network in development that will provide warning of advanced threats such as hypersonic missiles.
Northrop Grumman has been awarded contracts for prior phases of the Proliferated Warfighter Space Architecture, a planned network of missile defense and communications satellites in low Earth orbit.
The contract announced Friday is valued at $764 million, and the company is now set to deliver a total of 150 satellites for the network.
The $805-million contract awarded to Rocket Lab is its largest to date. It had previously been awarded a $515 million contract to deliver 18 communications satellites for the network.
Founded in 2006 in New Zealand, the company builds satellites and provides small-satellite launch services for commercial and government customers with its Electron rocket. It moved to Long Beach in 2020 from Huntington Beach and is developing a larger rocket.
“This is more than just a contract. It’s a resounding affirmation of our evolution from simply a trusted launch provider to a leading vertically integrated space prime contractor,” said Rocket Labs founder and chief executive Peter Beck in online remarks.
The company said it could eventually earn up to $1 billion due to the contract by supplying components to other builders of the satellite network.
Also awarded contracts announced Friday were a Lockheed Martin group in Sunnyvalle, Calif., and L3Harris Technologies of Fort Wayne, Ind. Those contracts for 36 satellites were valued at nearly $2 billion.
Gurpartap “GP” Sandhoo, acting director of the Space Development Agency, said the contracts awarded “will achieve near-continuous global coverage for missile warning and tracking” in addition to other capabilities.
Northrop Grumman said the missiles are being built to respond to the rise of hypersonic missiles, which maneuver in flight and require infrared tracking and speedy data transmission to protect U.S. troops.
Beck said that the contracts reflects Rocket Labs growth into an “industry disruptor” and growing space prime contractor.
Business
California-based company recalls thousands of cases of salad dressing over ‘foreign objects’
A California food manufacturer is recalling thousands of cases of salad dressing distributed to major retailers over potential contamination from “foreign objects.”
The company, Irvine-based Ventura Foods, recalled 3,556 cases of the dressing that could be contaminated by “black plastic planting material” in the granulated onion used, according to an alert issued by the U.S. Food and Drug Administration.
Ventura Foods voluntarily initiated the recall of the product, which was sold at Costco, Publix and several other retailers across 27 states, according to the FDA.
None of the 42 locations where the product was sold were in California.
Ventura Foods said it issued the recall after one of its ingredient suppliers recalled a batch of onion granules that the company had used n some of its dressings.
“Upon receiving notice of the supplier’s recall, we acted with urgency to remove all potentially impacted product from the marketplace. This includes urging our customers, their distributors and retailers to review their inventory, segregate and stop the further sale and distribution of any products subject to the recall,” said company spokesperson Eniko Bolivar-Murphy in an emailed statement. “The safety of our products is and will always be our top priority.”
The FDA issued its initial recall alert in early November. Costco also alerted customers at that time, noting that customers could return the products to stores for a full refund. The affected products had sell-by dates between Oct. 17 and Nov. 9.
The company recalled the following types of salad dressing:
- Creamy Poblano Avocado Ranch Dressing and Dip
- Ventura Caesar Dressing
- Pepper Mill Regal Caesar Dressing
- Pepper Mill Creamy Caesar Dressing
- Caesar Dressing served at Costco Service Deli
- Caesar Dressing served at Costco Food Court
- Hidden Valley, Buttermilk Ranch
Business
They graduated from Stanford. Due to AI, they can’t find a job
A Stanford software engineering degree used to be a golden ticket. Artificial intelligence has devalued it to bronze, recent graduates say.
The elite students are shocked by the lack of job offers as they finish studies at what is often ranked as the top university in America.
When they were freshmen, ChatGPT hadn’t yet been released upon the world. Today, AI can code better than most humans.
Top tech companies just don’t need as many fresh graduates.
“Stanford computer science graduates are struggling to find entry-level jobs” with the most prominent tech brands, said Jan Liphardt, associate professor of bioengineering at Stanford University. “I think that’s crazy.”
While the rapidly advancing coding capabilities of generative AI have made experienced engineers more productive, they have also hobbled the job prospects of early-career software engineers.
Stanford students describe a suddenly skewed job market, where just a small slice of graduates — those considered “cracked engineers” who already have thick resumes building products and doing research — are getting the few good jobs, leaving everyone else to fight for scraps.
“There’s definitely a very dreary mood on campus,” said a recent computer science graduate who asked not to be named so they could speak freely. “People [who are] job hunting are very stressed out, and it’s very hard for them to actually secure jobs.”
The shake-up is being felt across California colleges, including UC Berkeley, USC and others. The job search has been even tougher for those with less prestigious degrees.
Eylul Akgul graduated last year with a degree in computer science from Loyola Marymount University. She wasn’t getting offers, so she went home to Turkey and got some experience at a startup. In May, she returned to the U.S., and still, she was “ghosted” by hundreds of employers.
“The industry for programmers is getting very oversaturated,” Akgul said.
The engineers’ most significant competitor is getting stronger by the day. When ChatGPT launched in 2022, it could only code for 30 seconds at a time. Today’s AI agents can code for hours, and do basic programming faster with fewer mistakes.
Data suggests that even though AI startups like OpenAI and Anthropic are hiring many people, it is not offsetting the decline in hiring elsewhere. Employment for specific groups, such as early-career software developers between the ages of 22 and 25 has declined by nearly 20% from its peak in late 2022, according to a Stanford study.
It wasn’t just software engineers, but also customer service and accounting jobs that were highly exposed to competition from AI. The Stanford study estimated that entry-level hiring for AI-exposed jobs declined 13% relative to less-exposed jobs such as nursing.
In the Los Angeles region, another study estimated that close to 200,000 jobs are exposed. Around 40% of tasks done by call center workers, editors and personal finance experts could be automated and done by AI, according to an AI Exposure Index curated by resume builder MyPerfectResume.
Many tech startups and titans have not been shy about broadcasting that they are cutting back on hiring plans as AI allows them to do more programming with fewer people.
Anthropic Chief Executive Dario Amodei said that 70% to 90% of the code for some products at his company is written by his company’s AI, called Claude. In May, he predicted that AI’s capabilities will increase until close to 50% of all entry-level white-collar jobs might be wiped out in five years.
A common sentiment from hiring managers is that where they previously needed ten engineers, they now only need “two skilled engineers and one of these LLM-based agents,” which can be just as productive, said Nenad Medvidović, a computer science professor at the University of Southern California.
“We don’t need the junior developers anymore,” said Amr Awadallah, CEO of Vectara, a Palo Alto-based AI startup. “The AI now can code better than the average junior developer that comes out of the best schools out there.”
To be sure, AI is still a long way from causing the extinction of software engineers. As AI handles structured, repetitive tasks, human engineers’ jobs are shifting toward oversight.
Today’s AIs are powerful but “jagged,” meaning they can excel at certain math problems yet still fail basic logic tests and aren’t consistent. One study found that AI tools made experienced developers 19% slower at work, as they spent more time reviewing code and fixing errors.
Students should focus on learning how to manage and check the work of AI as well as getting experience working with it, said John David N. Dionisio, a computer science professor at LMU.
Stanford students say they are arriving at the job market and finding a split in the road; capable AI engineers can find jobs, but basic, old-school computer science jobs are disappearing.
As they hit this surprise speed bump, some students are lowering their standards and joining companies they wouldn’t have considered before. Some are creating their own startups. A large group of frustrated grads are deciding to continue their studies to beef up their resumes and add more skills needed to compete with AI.
“If you look at the enrollment numbers in the past two years, they’ve skyrocketed for people wanting to do a fifth-year master’s,” the Stanford graduate said. “It’s a whole other year, a whole other cycle to do recruiting. I would say, half of my friends are still on campus doing their fifth-year master’s.”
After four months of searching, LMU graduate Akgul finally landed a technical lead job at a software consultancy in Los Angeles. At her new job, she uses AI coding tools, but she feels like she has to do the work of three developers.
Universities and students will have to rethink their curricula and majors to ensure that their four years of study prepare them for a world with AI.
“That’s been a dramatic reversal from three years ago, when all of my undergraduate mentees found great jobs at the companies around us,” Stanford’s Liphardt said. “That has changed.”
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