Cava is experiencing significant success while many of its competitors in the fast-food industry face challenges. The Mediterranean fast casual restaurant chain has witnessed a substantial increase in customer footfall as it continues to expand into middle-class suburban areas. According to research firm Placer.ai, Cava is on track to outperform other restaurant chains in the first quarter of 2025.
In contrast, major chains like McDonald’s, Burger King, and Pizza Hut have reported declines in sales during the same period. Notably, rival Sweetgreen has also faced difficulties, while Cava saw a nearly 20 percent rise in customer numbers within the first three months of 2023. This highlights Cava’s effective strategy to tap into new demographics without losing touch with its core audience.
Expanding its reach among working and middle-class “blue collar suburbs” has proven beneficial for Cava, allowing it to cultivate a diverse customer base. The chain has ambitious plans for expansion, aiming to open between 62 and 66 new locations, including its first restaurant in Michigan.
Founded originally as Cava Mezze, the brand has evolved into one of the nation’s fastest-growing fast-food chains, offering Mediterranean cuisine with a focus on ‘heart, health, and humanity in food.’ Following its stock market debut in 2023, Cava achieved a valuation exceeding $4.6 billion, with revenues of $954.3 million in 2024, marking a remarkable 35.1 percent growth year-over-year.
Looking ahead, Cava anticipates same-store sales growth between 6 and 8 percent in 2025. If projections hold, the chain could finish its first quarter of 2025 with revenues around $1.19 billion. While other chains struggle, Sweetgreen has shown resilience with more than an 11 percent increase in customer numbers, even amid a 3.1 percent decline in same-store sales.
The broader restaurant landscape reveals ongoing challenges, with some sit-down chains like Hooters and TGI Fridays filing for Chapter 11 bankruptcy. However, the successes of Cava and Sweetgreen illustrate opportunities for growth in the fast-casual sector, bringing a hopeful perspective for the industry in navigating current economic difficulties.