Cava Cuts Sales Forecast as Consumer Spending Slows

Cava Group’s decision to cut its full-year sales growth targets comes after a disappointing third quarter where foot traffic across its locations stalled significantly. This decline in customer visits mirrors a broader trend affecting the fast-casual restaurant sector, where operators are seeing consumers pull back on dining out due to persistent financial pressures. The company’s revised outlook signals that even popular chains are not immune to the spending slowdown that has been building momentum throughout 2024.

The foot traffic stall represents a critical challenge for Cava Group, which had previously maintained strong growth momentum in the competitive fast-casual space. The decline in restaurant visits during the third quarter forced management to reassess their full-year projections, acknowledging that consumer spending patterns have shifted more dramatically than anticipated. This revision places Cava among numerous restaurant operators confronting the reality that budget-conscious consumers are increasingly foregoing restaurant meals in favor of more economical dining options.

Despite the overall decline in foot traffic, CFO Tricia Tolivar highlighted a notable bright spot in the company’s performance: increased accessibility and sales growth among lower-income consumers. Tolivar’s comments, made during her appearance on ‘Bloomberg Businessweek Daily’ with hosts Carol Massar, Tim Stenovec, and Nina Trentmann, suggest that Cava’s value proposition is resonating with budget-conscious diners even as overall restaurant visits decline. This demographic shift indicates the company may be successfully positioning itself as an affordable luxury during economically uncertain times.

Tolivar’s assertion that Cava is becoming ‘more accessible for the lower income consumer’ points to a strategic pivot as the chain navigates changing consumer behavior. While many restaurant operators are struggling across all income segments, Cava’s ability to drive increased sales specifically among lower-income customers suggests their menu pricing and value messaging may be hitting the right notes with this financially sensitive demographic. This development could provide a foundation for stability even as broader consumer spending on dining out continues to soften.

The challenges facing Cava Group reflect broader macroeconomic pressures affecting the entire restaurant industry. As inflation continues to squeeze household budgets and consumers reassess discretionary spending, fast-casual operators are finding themselves in a particularly vulnerable position—caught between quick-service restaurants offering lower prices and full-service establishments providing more experiential dining. Tolivar’s discussion on ‘Bloomberg Businessweek Daily’ emphasized how Cava is adapting its growth strategy to this new reality while maintaining its core value proposition.

During her interview with Carol Massar, Tim Stenovec, and Nina Trentmann, Tolivar outlined how Cava is addressing the current economic environment while continuing to pursue growth opportunities. The company’s leadership appears focused on balancing short-term challenges with long-term strategic objectives, recognizing that consumer spending patterns may remain volatile for the foreseeable future. This approach acknowledges that restaurant operators must be nimble in responding to shifting economic conditions while maintaining the brand identity that has driven their success.

The restaurant industry’s current struggles highlight how sensitive dining-out behavior is to broader economic conditions. As consumers face continued financial pressure, even established chains like Cava must recalibrate expectations and strategies. The company’s experience serves as a case study in how restaurant operators are navigating this challenging period—making tactical adjustments while staying true to their brand positioning and looking for growth opportunities even in constrained market conditions.