LEADERSHIP
The 2024 Pacesetter Award goes to: CAVA The newly public fast casual has carved out a sweet spot with a fresh and healthful Mediterranean menu with broad appeal. T hose looking for a great success story in the chain restaurant world should look no further than CAVA. By Lisa Jennings Executive Editor Restaurant Business
The Washington, D.C.-based fast- casual chain is the winner of this year’s Pacesetter Award, which honors concepts that have moved from up-and-coming brand status to become category leaders. Known for its healthful, Mediterranean-flavored menu, CAVA has carved out a sweet spot within the “cultural cuisine” category, as CEO and co-founder Brett Schulman likes to say. It was a landmark year for CAVA Group Inc. in 2023, the chain’s first year as a public company after a successful initial public offering in June that nearly doubled its stock price on opening day. At the time, the company was reporting negative numbers. But by the end of the year, CAVA recorded net income of $13.3 million, com- pared with a loss of $59 million the prior year. Same-store sales were up an enviable 18%—including traf- fic growth of more than 10%—on revenues that grew by nearly 60% to $717.1 million. CAVA’s market cap is now close to $8 billion, with units averag- ing $2.6 million in sales. And, with sights set on reaching 1,000 units by
Kelly Costanza (left), Andy Rebhun and Beth McCormick of CAVA
cluding more drive-thru locations. The loyalty program will be re- launched later this year after an upgrade. And CAVA is testing some restaurant ambiance enhancements to make restaurants more inviting for dine-in guests. Schulman sees CAVA as a brand that can offer both convenience and hospitality, bridging the gap between limited- and full-service dining. Kelly Costanza, CAVA’s chief peo- ple officer, accepted the Pacesetter Award on Sunday with chief experi- ence officer Andy Rebhun and chief information officer Beth McCormick. CAVA’s “secret sauce” is simple, said Costanza: “Staying true to who you are; staying true to your brand,” she said. “We really believe in our delicious Mediterranean food.”
2032, CAVA is now settling into what Schulman expects will be more “normalized” same-store sales growth of 3% to 5% this year—lap- ping a strong year—as the IPO halo dims. No other fast-casual Mediterra- nean brand comes close in terms of footprint, and CAVA has surpassed healthy fast-casual rival Sweetgreen (221) in unit count, though it has a long way to go to catch Chipotle’s 3,400 units. CAVA expects to open between 48 to 52 new restaurants this year, where Chipotle expects to add 285 to 315. CAVA has also evolved into a multi-channel business, with about 36% of sales coming from digital and delivery orders. Schulman sees a big opportunity with catering, as well as new restaurant formats, in-
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