CAVA CEO Brett Schulman describes the February 2013 opening of CAVA's fifth location in Fairfax, Virginia as the company's growth tipping point.
Assertion Not checkable as stated
Zoës Kitchen's same-store sales plummeted 12% right as CAVA's acquisition closed
“And when we were negotiating the deal, the sales were declining about three to four percent, same restaurant sales, you know, year over year. And I get this report just sent to my inbox, and I open it up, and it's -12.”
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Schulman: DTC customer acquisition has become too expensive for online-only marketing
“Post pandemic, the, you know, cost of acquisition or just awareness on the internet or being a DTC brand has gotten really expensive and people have gotten back out in the world. And even with the changes in third party data, privacy laws, it's restricted the …”
Insight
Schulman: Scaling physical restaurant operations requires upfront capital unlike SaaS
“Scaling restaurants is not like scaling SAS software. It takes people. It takes process. It's building physical restaurants. You're building physical roasteries. So that takes capital and it's hard to scale these things. So being able to afford the capabilitie…”
Insight
Schulman: Walk-the-line formats create labor efficiencies that fund premium ingredients
“And one of the things that struck me that really helped us make the decision was that the walk the line format allowed very efficient labor costs. You know, it's the old Henry Ford production line. That allowed you to invest in high quality ingredients”
Disclosure
Panera founder Ron Shaich helped engineer CAVA's acquisition of Zoës Kitchen
“Zoës had approached him, and he said, you know, what do you think about if our investors put together the capital, we acquire it, and give it to you, Brett, and your team?”
Assertion Not checkable as stated
CAVA locations generated nearly double the revenue of neighboring Zoës Kitchen stores
“We had a few Kava's that were across the street from a Zoe's, and we were doing almost twice the revenue, and that emboldened us to make that decision, and take Zoe's private.”