Cava Defies Restaurant Industry Norms with Winning No-Discount Approach
Cava CEO Brett Schulman explains the restaurant chain’s no-discount strategy.
Cava distinguishes itself in the competitive fast-casual dining landscape with a bold and unique approach: a strict no-discount policy. This Mediterranean chain, which has rapidly expanded across the United States since its inception nearly a decade ago, firmly believes that discounts are not necessary to attract customers.
The Mediterranean chain has made it clear that it does not rely on temporary price cuts to boost short-term traffic. Co-founder and CEO Brett Schulman shared insights with FOX Business, emphasizing that many companies fall into a “short-term trap” by offering discounts to drive immediate sales. He noted that public companies often feel pressure from the market, leading them to chase quarterly results through discounting strategies.
MCDONALD’S VALUE MEAL RETURN SPARKS INDUSTRYWIDE DISCOUNT BATTLE
Schulman has consistently reiterated during earnings calls that Cava will not adopt this discount-driven approach. He argues that temporary discounts fail to foster long-term customer relationships or effectively communicate the unique value of the offerings provided daily.
Cava bags outside the company’s restaurant in the Brooklyn borough of New York. (Gabby Jones/Bloomberg via Getty Images)
“You can’t discount your way to prosperity,” Schulman stated. “We want to invest in our guests for the long term and continue to provide stronger everyday value.”
MCDONALD’S BRINGS BACK EXTRA VALUE MEALS TO LURE BUDGET-CONSCIOUS CUSTOMERS
This perspective stands in stark contrast to the broader industry, which has increasingly relied on discounts and aggressive promotions to attract budget-conscious diners. Following McDonald’s reintroduction of its Extra Value Meals in September, numerous competitors have ramped up their own value offerings, launching various affordable bundles and promotions.
The inside of a refreshed Cava restaurant. Cava is upgrading the interior of its restaurants under a plan called “Project Soul.” (Cava)
MCDONALD’S TO SLASH COMBO MEAL PRICES TO WIN BACK BUDGET-CONSCIOUS SHOPPERS
The fast-food industry is grappling with numerous challenges, including margin pressures from supply chain disruptions and rising labor costs due to minimum wage increases. In response, many companies have resorted to discounts to attract budget-conscious consumers and stabilize declining traffic.
Mark Wasilefsky, head of restaurant and franchise finance at TD Bank, noted that the restaurant sector is currently experiencing some of the lowest consumer sentiment levels in the past 50 years. During such times, consumers are keen to feel they are receiving the best value for their money. However, he acknowledged that brands like Chipotle and Cava have been outperforming their competitors.
Over the past two years, Cava has seen consistent quarterly sales growth. Schulman highlighted that new locations are opening with record revenues exceeding $3 million—a significant milestone for the company.
Schulman emphasizes that value is not merely about pricing; it encompasses the entire dining experience. Cava’s focus on high-quality Mediterranean cuisine aligns with current health trends, while also providing convenience through mobile ordering, drive-thru, and delivery options. The company is committed to creating a comfortable dine-in atmosphere, ensuring that the in-store ordering experience is pleasant, with friendly service, generous portion sizes, and accurate orders.
The outside of a Cava restaurant in Detroit. (Cava)
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Looking ahead, Cava plans to complete upgrades to its restaurant spaces, enhancing seating, lighting, and greenery. Additionally, the company is set to introduce new menu items, including roasted salmon, in the coming year.
Cava CEO Brett Schulman explains the restaurant chain’s no-discount strategy.
Cava distinguishes itself in the competitive fast-casual dining landscape with a bold and unique approach: a strict no-discount policy. This Mediterranean chain, which has rapidly expanded across the United States since its inception nearly a decade ago, firmly believes that discounts are not necessary to attract customers.
The Mediterranean chain has made it clear that it does not rely on temporary price cuts to boost short-term traffic. Co-founder and CEO Brett Schulman shared insights with FOX Business, emphasizing that many companies fall into a “short-term trap” by offering discounts to drive immediate sales. He noted that public companies often feel pressure from the market, leading them to chase quarterly results through discounting strategies.
MCDONALD’S VALUE MEAL RETURN SPARKS INDUSTRYWIDE DISCOUNT BATTLE
Schulman has consistently reiterated during earnings calls that Cava will not adopt this discount-driven approach. He argues that temporary discounts fail to foster long-term customer relationships or effectively communicate the unique value of the offerings provided daily.
Cava bags outside the company’s restaurant in the Brooklyn borough of New York. (Gabby Jones/Bloomberg via Getty Images)
“You can’t discount your way to prosperity,” Schulman stated. “We want to invest in our guests for the long term and continue to provide stronger everyday value.”
MCDONALD’S BRINGS BACK EXTRA VALUE MEALS TO LURE BUDGET-CONSCIOUS CUSTOMERS
This perspective stands in stark contrast to the broader industry, which has increasingly relied on discounts and aggressive promotions to attract budget-conscious diners. Following McDonald’s reintroduction of its Extra Value Meals in September, numerous competitors have ramped up their own value offerings, launching various affordable bundles and promotions.
The inside of a refreshed Cava restaurant. Cava is upgrading the interior of its restaurants under a plan called “Project Soul.” (Cava)
MCDONALD’S TO SLASH COMBO MEAL PRICES TO WIN BACK BUDGET-CONSCIOUS SHOPPERS
The fast-food industry is grappling with numerous challenges, including margin pressures from supply chain disruptions and rising labor costs due to minimum wage increases. In response, many companies have resorted to discounts to attract budget-conscious consumers and stabilize declining traffic.
Mark Wasilefsky, head of restaurant and franchise finance at TD Bank, noted that the restaurant sector is currently experiencing some of the lowest consumer sentiment levels in the past 50 years. During such times, consumers are keen to feel they are receiving the best value for their money. However, he acknowledged that brands like Chipotle and Cava have been outperforming their competitors.
Over the past two years, Cava has seen consistent quarterly sales growth. Schulman highlighted that new locations are opening with record revenues exceeding $3 million—a significant milestone for the company.
Schulman emphasizes that value is not merely about pricing; it encompasses the entire dining experience. Cava’s focus on high-quality Mediterranean cuisine aligns with current health trends, while also providing convenience through mobile ordering, drive-thru, and delivery options. The company is committed to creating a comfortable dine-in atmosphere, ensuring that the in-store ordering experience is pleasant, with friendly service, generous portion sizes, and accurate orders.
The outside of a Cava restaurant in Detroit. (Cava)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Looking ahead, Cava plans to complete upgrades to its restaurant spaces, enhancing seating, lighting, and greenery. Additionally, the company is set to introduce new menu items, including roasted salmon, in the coming year.
