Dive Brief:
- Cava will launch an update to its loyalty program nationwide in October, somewhat ahead of schedule, CEO Brett Schulman said in an interview with Restaurant Dive. The chain previously forecast it would roll out by the end of the year.
- Cava has been testing that program in Texas, starting in Dec. 2023, and the Carolinas, starting earlier this year. The program has multiple reward options drawn from a catalog of eligible menu items, Schulman said.
- On the chain’s Q2 earnings call, Schulman said the brand expects the new loyalty program to “significantly grow first-party data and help us create more frequent, relevant experiences that drive traffic, mix, and check.”
Dive Insight:
In late 2023, Cava switched to a points-based program from a transaction-based model. Members earn 10 points for every dollar spent and can “load food beverage, store credit, percentage discounts and other items available,” to their accounts, according to the terms and conditions. Schulman, in a previous interview, said this change was a placeholder while the brand worked on a more sophisticated version in test markets.
The test program, also described in the terms and conditions, offers rewards in several tiers, ranging from drinks (400 points) up to entrees (1,850 points).
Schulman said in an interview that the loyalty update is similar to the test program, but would have some minor changes to its rewards catalog, so the specific point values listed in the pilot program’s terms and conditions may change.
“This will be the first phase of a multi phase initiative where we'll layer on new and exciting rewards in the months to come,” Schulman said.
Tricia Tolivar, the brand’s chief financial officer, said on Cava’s earnings call that it has not factored any projected changes to traffic or sales from the updated rewards program into its financial forecast.
