The restaurant industry comes with a lot of variety within it. This helps entrepreneurs choose the best option in terms of profit and their liking. Cava is a popular restaurant chain specializing in Mediterranean types of food in the restaurant industry. If you are interested in this cuisine, you probably heard of Cava and might even be thinking of owning one.
Unfortunately, Cava is currently not a franchise, so you can’t own a Cava restaurant. However, there are many alternatives that you can look at. This article will take a look at Cava, why they don’t franchise, their future plans, and alternative franchise chains similar to Cava.
About Cava And Its History
Cava is a fast-casual restaurant chain that specializes in Mediterranean cuisine and offers customizable bowls, salads, and pita sandwiches. They were founded in 2011 in Maryland by three Greek Americans. The company is run by the publicly traded company Cava Group which also owns Zoes Kitchen. Cava Group is the largest Mediterranean restaurant operator in The United States.
Cava Group’s valuation currently stands at $1.3 billion, with over 250 locations across the United States just with Cava restaurants. As of 2023, Cava does not offer franchising. It’s not possible to take a piece of this piece and a part of their network.
Franchise Model Table
| Franchise | NO |
| Franchise-Fee | NO |
| Estimated Outlets | 263 |
Does Cava Franchise?
No, Cava is currently not a franchise as of 2023. All their stores are company owned and operated by them.
How Much Does It Cost to Open a Cava Franchise?
Cava doesn’t currently franchise, so there are no costs associated with opening a Cava franchise. All Cava stores are company owned and operated by them.
Why Doesn’t Cava Offer Franchising?
There is no public information on why Cava doesn’t franchise right now. They never offered franchising opportunities since they were founded. They also never publicly communicated about any plans to franchise or why they never chose to franchise.
Cava Revenue & Profit
Cava Restaurants is a part of the publicly traded Cava Group that also runs other restaurants. That’s why the individual financials of Cava is not available. Cava Group’s revenue in 2022 was $564 million, up from 2021, which was $500 million.
Even though Cava Group had outstanding revenue numbers, they didn’t manage to make a profit in 2022. Once we removed the expenses, their net profit was negative $58.9 million. This means Cava Group lost $58.9 million in 2022.
What Are Some Alternatives to Cava?
Cava is a famous Mediterranean restaurant with high brand awareness. However, they do not offer franchising. There are similar restaurants in the same industry that offer franchising. Here are some of the alternatives.
The Simple Greek
Simple Greek is a Greek and Mediterranean food-focused restaurant that has been operating since 2015. It was founded by Marcus Lemonis to share more authentic Greek food, and it quickly grew to over 30 locations. They have been franchising since 2016 to expand faster and to different areas of the United States.
It costs between $318,700 and $675,500 to open a Simple Greek franchise, including the $25,000 franchise fee. The royalty fee is 4% of your gross sales each month.
Pita Pit
A Canadian quick-service restaurant franchise chain Pita Pit has been in operation since 1995. They are famous for their pita sandwiches with vegetables, meat, and sauces. They are headquartered in Ontario, and they have been owned by Foodtastic since 2021. They have been franchising since 1999 to expand into the United States and further into Canada.
As of 2023, they have over 500 locations in many different countries around the world. On average, you need between $216,334 and $435,102 in initial investment to open a Pita Pit. This fee includes all the associated startup costs, including the $25,000 franchise fee.
Cava Comparison
| Name | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Garbanzo Mediterranean Grill | $30,000 | 6% | $386,636-$786,499 |
| Taziki’s Mediterranean Café | $35,000 | 4% | $500,000-$1 million |
| Cava | NO | NO | NO |
Conclusion
Cava is a Mediterranean restaurant chain with over 250 stores. They are a popular name in the United States, and they are famous for their pita sandwiches and salad bowls. For entrepreneurs interested in owning a Cava store, they don’t offer franchising.
However, there are alternative restaurants like Pita Pit and Taziki’s Mediterranean Café. You can find the opportunity to buy a franchise from similar restaurants like Cava. Their market is huge and could give you a good profit. You must also explore the scrumptious Cava menu.
FAQ
What is the total cost of opening a Cava franchise?
Since Cava is not a franchise, there is no cost to open a franchised store. Cava opens all their stores themselves with their own money.
What are Cava's plans for the future regarding franchising?
The company didn’t communicate about the future plans regarding their franchising. It’s not clear whether they will franchise or not in the future.
Sources
https://en.wikipedia.org/wiki/Cava_(restaurant)
https://chainstoreage.com/restaurant-chain-cava-files-ipo-sees-potential-1000-plus-locations
https://pitapitusa.com/franchising/investment
https://www.tazikisfranchising.com/faq
https://en.wikipedia.org/wiki/Pita_Pit
https://stockanalysis.com/stocks/cava/financials/
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.