Dive Brief:
- Cava will open its first store in the Midwest on Friday, the chain announced Thursday, inaugurating a new phase in the national expansion of the 325-unit fast casual brand.
- The 3,100-square-foot unit is located in the Wicker Park neighborhood of Chicago, and has an expanded kitchen for centralized catering production, reflecting the chain’s recent emphasis on catering as a cornerstone of its strategy. The restaurant also includes a 30-seat dining room and digital pickup and delivery.
- The brand will open a second Illinois location in suburban Vernon Hills later this summer, The Chicago Sun-Times reported.
Dive Insight:
Cava opened 72 net Cava locations in 2023, including 28 converted units, and plans 15% unit growth in 2024 and 2025. Previously, the brand’s unit growth was driven by the conversion of 153 total Zoës Kitchen units into Cava restaurants.
On the chain’s Q4 2023 earnings call, CFO Tricia Tolivar said the company dedicated about 70%-80% of its real estate pipeline to growth or emerging markets, where the chain has a presence but not a high level of density.
“We have a very balanced pipeline, meaning about 10% in established markets and then another 10% or 20% in the greenfield markets, which are those brand-new markets like Chicago where we’ll be opening up,” Tolivar said. Tolivar also said that new openings in recent months have exceeded expected unit volumes and store-level margins.
Cava saw about $13 million in net income in 2023 compared to a nearly $59 million loss in 2022, according to its 10-K, as its revenue leaped from $448 million to $717 million. The chain underwent an IPO in mid-2023 to strengthen its balance sheet and raise money to enter new markets, and is currently testing a strengthened and more personalized loyalty program.
Cava promotes its new restaurant openings with “a free meal, accepts guests’ donations to local organizations dedicated to food security, and matches those donations up to $1,000,” the day before formal opening.
