22 Jun

Nathaniel Ru vs. the Traditional Fast Food Chain

Nathaniel Ru has managed to carve a very creative way to get into the food restaurant chain business. He has managed to do what many people may not have thought he could do when it comes to his competition with fast food establishments. What Nathaniel Ru has done is provide a way for consumers to acquire healthy food, but he has remained as trendy and popular as the bigger restaurant chains like Kentucky Fried Chicken, Burger King and Taco Bell.

 

The fact that he has been able to do this with healthy food options is almost miraculous when one considers what he is up against. People have to realize that the costs involved for the distribution of fast food items that are presented on a dollar menu are much cheaper. Any CEO that has a restaurant chain that has a dollar menu is obviously paying even less than a $1 for the food items that they are serving in order to make a profit. This translates into quicker growth and a lot more coverage because the cost of operations, in terms of the food, is much cheaper.

 

For Nathaniel Ru it is obviously a different story altogether because he is presenting consumers with fresh fruits and vegetables. There is no possible way that he could connect with farmers to get any prices on any of these products under $1. This means that his cost of operations in terms of the food that he is selling is going to be much greater. This is why it was important for him to start small in 2007 and work his way up.

 

It would not have been wise for Nathaniel Ru to try to expand so quickly throughout the United States because the economies of scale had not been manifested in the locations that he had in the first few years. For Nathaniel to really see the growth of his company in terms of profitability it would take more help from venture capitalists that were willing to invest. Fortunately, the demand for Sweetgreen has been so great that he has not had any problems with getting people to invest in what he was doing. He has been able to prove that there is an interest in eating healthy, and the fact that he can go up against the juggernaut of the cheap fast food restaurant chains is quite impressive to consumers and investors.