Fast-Casual Chain Cava Targets 1,000 Locations by 2032
After opening 58 new locations in 2024, the company plans to top that number this year with more than 60 new restaurants planned. The fast-casual Mediterranean chain currently operates 367 restaurants across 26 states and Washington, DC, with a bold goal of reaching 1,000 locations by 2032.
"CAVA fits our criteria as a category leader with a digital advantage that is key to our thesis on restaurant industry outperformers," according to a recent TD Cowen report.
What's fueling this growth? Cava has become the clear leader in the Mediterranean fast-casual space, now roughly four times larger than its nearest competitor. Since December 2023, while Cava opened 58 net new restaurants, its 15 largest direct competitors combined opened just five.
The chain recently expanded into South Florida and Indianapolis markets, with Detroit and Pittsburgh openings planned later this year.
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"We plan to launch a second urban location in Indianapolis later this year as part of our expansion into the Midwest," the company stated in a March news release.
Despite inflation pressures, Cava has maintained competitive pricing while building a devoted fan base. "Don't kill me but Cava is way better than Chipotle," one customer wrote on Facebook.
CEO Brett Schulman announced the company's focus on enhancing in-store experiences while also improving their digital offerings. "If people want a kiosk-type experience they can download and open up the app," Schulman said.
The chain is also experimenting with new furniture and color schemes to create a more welcoming atmosphere, similar to changes made by competitors like Shake Shack and Starbucks.
Cava's menu innovation continues to drive customer excitement. The company recently introduced Hot Harissa Pita Chips, a spicy new take on their popular snack item.
"Our new Hot Harissa Pita Chips are a bold twist on our beloved snack, showcasing our unique harissa spice for a new and exciting taste experience," said Ted Xenohristos, co-founder and chief concept officer for Cava.
This follows last fall's successful launch of Garlic Ranch Pita Chips, which together with a new loyalty program contributed to a 13% traffic increase in the third quarter of 2024.
The Mediterranean food segment is well-positioned to benefit from changing consumer preferences, as it "inspires health & wellness, while the concept eliminates the veto vote with the ability to eat indulgently," according to industry analysis.
