OPERATIONS
CAVA'S CEO: HERE'S HOW WE'LL REMAIN BEST IN BREED
THE RESTAURANT INDUSTRY HAS LONG WATCHED CATEGORY-LEADING BRANDS, LIKE CHIPOTLE, PANERA AND STARBUCKS. NOW ALL EYES ARE ON THE FAST-CASUAL MEDITERRANEAN CHAIN AS IT DEFINES THE NEXT CULTURAL CUISINE NICHE.
BY LISA JENNINGS
H ow does Cava do it? While most of the restaurant industry grapples with traffic declines while swimming through a flood of competitive discounts, Cava remains seemingly above it all. Traffic grew nearly 13% in the third quarter, which was even more than the 9.5% increase in the quarter just prior. And the fourth quarter is likely to carry on that upward trend, given the company has raised its guidance for the year, saying same-store sales are expected to range between 12% and 13%. Among publicly traded restaurant companies, that’s second only to Wingstop, which reported same-store sales up 21% for the third quarter, almost entirely driven by chicken-sandwich-loving traffic. Wingstop expects same-store sales to reach 20% for the year. Fast casual, in general, is faring much better in this value-focused macroeconomic climate, compared to quick- service and casual-dining players. Chipotle had a strong quarter, with same-store sales up 6% including traffic up 3.3%. Sweetgreen also up 6%, with 2% of that from traffic and menu mix. But Cava has outpaced the fast-casual segment throughout this year, according to Placer.ai, which this week reported
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RESTAURANT BUSINESS JANUARY 2025
PHOTO COURTESY: CAVA
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