Cava’s CFO on sustaining growth and developing future leaders amid consumer strain

Good morning. As consumer pressure becomes more visible in the restaurant industry, Cava remains focused on growth and building its leadership pipeline.

Cava, the Mediterranean-inspired fast-casual restaurant, reported its Q3 earnings last week. Revenue increased 20% to $289.8 million. However, the company reduced its full-year sales growth guidance, reporting flat foot traffic and a 1.9% increase in comparable sales—short of Wall Street expectations for 2.7%. 

Cava’s reduction in expectations for the rest of the year factors in a very uncertain consumer economic dynamic, CFO Tricia Tolivar told me. Amid a government shutdown, consumers are feeling more pressure. “We took a very thoughtful and judicious approach to our guidance,” Tolivar said.

In recent earnings calls, the CEOs of Chipotle, Cava, and McDonald’s each pointed to consumer stress—particularly among younger or lower-income customers—as a headwind. These remarks support the idea of a K-shaped economy, where high-income earners continue spending broadly while lower-income households are tightening their belts, Fortune reported.

Cava has been very measured on price increases, Tolivar said. Since the end of 2019, Cava has increased menu prices by roughly 15%—a rate below both inflation (about 23%) and typical menu increases across quick-service restaurants (about 30%+). The company raised menu prices by only 1.7% in January and does not anticipate significant increases next year. “There’s pressure on costs for us, but we don’t think in today’s environment it is appropriate to pass that all on to the consumer,” Tolivar added.

Focus on growth and talent pipeline

“Despite the challenges the consumer is facing, we have been able to significantly grow market share, and that really underscores the power of the brand and the white space opportunity ahead of us,” Tolivar said.

Cava’s revenue has grown from roughly $564 million in 2022 to $954 million in 2024. The company’s momentum comes from the strength of its brand in the fast-growing Mediterranean category, which has been ranked the top diet for eight consecutive years, she said.

Currently in 28 states with over 400 restaurants, new locations are opening with average unit volumes above $3 million, higher than the overall chain average, Tolivar said. To support growth, Cava launched its “Flavor Your Future” initiative to develop internal talent for new leadership roles. The launch of a new assistant general manager program is one of the first actions under this initiative. Current general managers and area leaders evaluate high-performing candidates in Cava’s restaurants to assess future leadership potential, Tolivar said. 

“When I was in New York recently, Brett and I visited different restaurants,” Tolivar said. “When we walked into the Wall Street restaurant, our general manager said, ‘Hey, let me introduce you to my new assistant general manager; she’s a high-potential team member.’ It was inspiring to see the passion for developing leaders.”

When I asked how she maintains focus on growth amid uncertain times, Tolivar emphasized agility and a steady focus on strategy. “Staying committed to our long-term goals—while adapting when needed—will ensure lasting success for our brand and teams,” she said.

Sheryl Estrada
sheryl.estrada@fortune.com

This story was originally featured on Fortune.com