Operations
Top 3 learnings from Cava's Q3 earnings about growth in tight economy
Cava reported Q3 2025 revenue of $289.8 million, up 20% year over year, with same-restaurant sales growth of 1.9% and restaurant-level profit margin of 24.6%.
November 5, 2025 by Cherryh Cansler — Editor, FastCasual.com
Cava Group Inc.'s third-quarter fiscal year 2025 results offer a master class for fast casuals hoping to sustain growth and maintain market share as consumer spending tightens. The Mediterranean chain reported a 20% year-over-year revenue increase, reaching $289.8 million, driven by expansion and an emphasis on value.
While Cava opened 17 restaurants, bringing its total to 415, same-restaurant sales growth slowed to 1.9%, according to CEO Brett Schulman, echoing a similar sentiment made last week by Chipotle CEO Scott Boatright. about younger guests having less money to spend on dining out.
"(Challengse) are clearly out there, whether it's student loan repayment, consumer sentiment, just the inflationary pressures all around them, whether it's health care cost, housing costs," Schulman said during Tuesday's investor call.
Although this trend had a huge impact on Chipotle's Q3 earnings, Cava fared much better with its newest locations exceeding expectations and the two-year same-restaurant sales stack accelerating to 20%. The path forward, relies on three core lessons for any fast casual brand navigating a competitive landscape.
Top 3 lessons from Cava
1. Prioritize holistic value over deep discounting
Cava has resisted the heavy discounting pervasive in the restaurant industry. Instead, it frames value around quality, health and long-term affordability.
Since 2019, while overall restaurant industry sales have grown, industry transactions have declined, yet Cava has not only maintained but increased its market share significantly by delivering on its promise of high-quality food, brand relevance, curated guest experiences and seamless convenience, Schulman said, pointing out the company has underpriced the Consumer Price Index by nearly 10%, while taking less than half the aggregate, 34% price increases of industry peers.
Quality as a differentiator: The focus on fresh food is central to the value proposition, according to Schulman, who reminded investors a fresh chicken bowl is available for a price ($11-13) well below the frequently cited "$20 lunch" figure, reinforcing its high-quality, accessible positioning.
2. Weaponize technology for operational integrity
Rapid expansion must be paired with operational excellence. Cava is investing in technology and infrastructure to ensure consistency and speed across its growing footprint, including:
- Enhancing kitchen execution: The company has equipped all restaurants with TurboChef ovens for faster, consistent cook times and is rolling out a new kitchen display system to improve visual accuracy and proactive order notifications.
"Both the TurboChef and KDS investments helped reinforce execution in our kitchens while allowing our teams to focus on what matters most, delivering a great guest experience," Schulman said. "We are at a meaningful moment in our growth journey, and we know it is crucial to invest in training and developing our team members." - Building a talent pipeline: To support growth, Cava introduced the assistant general manager program to ensure a clear No. 2 leader is always in place, building a strong internal pipeline of "role-ready leaders" for future general manager positions.
3. Transform loyalty into an innovation and engagement platform
Alhtough the company uses it loyalty program to promote new offerings, like Chicken Shawarma and its salmon market test, its overall digital strategy is focused on personalized relationships rather than transactional coupons.
"This past October marked the one year anniversary of our rewards, reimagined, relaunch. And since then, the program has grown by approximately 36% and has become a key platform for connecting with guests in a more personal, meaningful and creative ways," Schulman said.
Building on that momentum, the chain recently introduced tiered status levels as well as status matching to welcome new members and encourage deeper participation.
"While status matching is a first of its kind offering in our industry, we see it simply as another way to express our concept essence. The latest evolution of our program also includes an expanded rewards catalog with seasonal offerings and fresh new ways to engage," Schulman said.
About Cherryh Cansler
