This rival salad chain could potentially surpass Sweetgreen's goal of becoming the "McDonald's of its generation."

• Salad and Go offers a healthier, affordable fast-food choice with its $7 salads and wraps.
• The salad chain, established in 2013, is currently led by former Wingstop CEO Charlie Morrison.
• Thousands of locations could eventually be part of the chain's expansion plans, as Morrison stated.

Two years ago, when the salad chain went public, CEO Jonathan Neman stated that the company aimed to become the "brand of its generation."

Another salad rival could beat Sweetgreen to the punch: Salad and Go.

The upstart chain, founded in 2013, is rapidly approaching its publicly traded rival's store count, with over 100 locations and counting. With the support of private equity firm Volt Investment, it has ambitious expansion plans for 2024, extending beyond its roots in the Southwest.

The affordability of Salad and Go is a significant factor in its appeal. A 48 ounce salad from Salad and Go costs less than $7 and includes chicken or tofu, while a comparable salad from Sweetgreen costs approximately $12.

Salad and Go's board welcomed former CEO Charlie Morrison in 2020. Two years later, he became the chain's chief executive, leaving his position at Wall Street's favorite chicken wing chain after a decade to lead a little-known salad chain with only 50 locations.

At the annual ICR Conference, Morrison stated that the brand was created with the goal of completely restructuring the supply chain and resolving the issues he believes are present today.

Salad and Go has more than doubled its footprint since Morrison became chief executive, with around 130 locations across Arizona, Nevada, Oklahoma, and Texas. The chain opened about a restaurant every week last year and plans to maintain that pace in 2024, entering new markets such as Southern California. In comparison, Sweetgreen has 220 open locations as of Sept. 24.

Morrison said the company is currently profitable in “established mature markets.”

How Salad and Go works

Salad and Go's salad or wrap starts at its commissary kitchen, where produce is washed and proteins are prepared. The ingredients are then shipped to its 750-square-foot locations, which are roughly the size of a typical restaurant kitchen. The restaurants have drive-thru lanes but no indoor seating.

The chain has grown rapidly due to its small footprint and low rent. Like other industry disruptors, such as ghost kitchens and Blank Street Coffee, it has utilized a similar real estate strategy to reduce overhead costs.

Customers can order salads and wraps online or through the drive-thru lanes, and a team of two employees prepares their customized meals.

The kitchen of the simplified restaurant has a walk-in cooler and cooling counters under the production line where orders are assembled. Some ingredients, such as eggs for breakfast burritos and avocados for salads, are prepared on-site rather than in commissaries.

Fast-food restaurants typically have freezers, broilers, fryers, hoods, and fire suppression systems, but Salad and Go locations often lack these features, which can cause delays due to equipment inspections before opening.

According to Morrison, on average, a Salad and Go customer takes less than four minutes to exit the drive-thru line. More and more customers are choosing to pick up orders for multiple meals.

Salad and Go stands out among other quick-service restaurant brands because we offer a two-daypart single occasion experience. Customers can enjoy breakfast, cold brew coffee, hot coffee, and salad all in one visit.

Replacing burgers, not salads

Morrison believes that Salad and Go's salads will have a broad appeal as the chain expands into new areas.

Morrison stated that the stores we've placed in diverse markets with varying income levels, levels of diversity, and focal points have shown consistent great performance.

Regular salad eaters are often the first customers of Salad and Go in new markets, but Morrison stated that the chain has also attracted other consumers due to its affordable prices and delicious food.

Nicole Portwood, Chief Marketing Officer of Salad and Go, stated to CNBC that what they observe among their fans and guests is a strong sense of loyalty and attachment.

Portwood was instrumental in transforming Tito's Handmade Vodka from a small-scale distiller to a national favorite. She began her career at Salad and Go as a board member before being appointed as its CMO in October.

Salad and Go is not the only chain that prioritizes convenience for on-the-go customers. Other salad players, such as Sweetgreen, Just Salad, and Salata, are also in the same markets as Salad and Go. Sweetgreen has been opening restaurants with drive-thru lanes dedicated to digital orders.

Morrison stated to CNBC that the chain is not concerned about those options, which typically charge at least double what his company offers for their healthy food.

He stated that our concept is not designed to compete with them, but rather with unhealthy eating occasions that are affordable, yet detrimental to one's health.

Salad and Go aims to replace fast-food chains like McDonald's, which removed salads from their menus during the pandemic and have not reintroduced them.

Ambitions for thousands of restaurants

In addition to imitating fast-food competitors, Salad and Go is also considering adopting other strategies.

Morrison stated that our expansion plans will enable us to have thousands of restaurants. He added that we believe this brand has great potential for a significant presence.

Salad and Go owns its restaurants rather than franchising them, which requires more capital. However, the central kitchens, or commissaries, help mitigate labor challenges by requiring less training for workers and fewer employees in the actual restaurants.

Salad and Go currently operates two commissary kitchens, one in Phoenix and another in Dallas. The Texas kitchen was the original prototype for the chain, and they plan to upgrade to a larger facility by spring that can accommodate up to 500 locations in the future, including potential restaurants in Atlanta.

Salad and Go's future plans involve expanding its restaurant chain and increasing brand awareness. When queried about long-term company goals, Morrison stated that all possibilities, including an IPO, are being considered.