Cava rebounds from cyclospora dip, credits advisory council and menu variety

Cava avoided outbreak-linked lettuce and jalapeño suppliers, CFO says

The Mediterranean fast-casual chain’s same-store sales recovery came as federal health officials continued investigating two summer outbreaks that have rippled across the restaurant industry. Chains including Sweetgreen and Chipotle Mexican Grill have said food-safety challenges weighed on demand, the Wall Street Journal reported.

Tolivar told the Journal’s CFO Journal newsletter that Cava’s sales started to slip around the end of the quarter ended July 12 because of recent cyclospora outbreaks. As concerns about the parasite eased over the following weeks, sales returned to mid-single-digit growth by early August, she said.

The chain had not seen impacts from a separate salmonella outbreak that public-health authorities said in early August was associated with jalapeños served at certain restaurants, Tolivar said.

Federal health officials have linked one of the summer cyclospora outbreaks to shredded iceberg lettuce from a Mexican supplier for Taco Bell restaurants, the Journal reported.

Tolivar said Cava does not source leafy greens from Mexico or jalapeños from farms associated with the outbreaks. The chain chose not to launch an explicit campaign distancing itself from affected suppliers, instead equipping employees with information about its supply sources to share with customers who asked.

Cava’s primary internal safeguard is a food-safety advisory council composed of three experts who meet regularly with company insiders. The council advises on topics including how to safely add seafood to the menu, which is an allergen for some diners, Tolivar said.

The chain’s menu variety provided flexibility during the outbreaks, Tolivar said. Guests worried about greens switched to grains and pitas for a period.

“The menu allowed consumers to feel good about the choices they were making and have flexibility if there were things that they were concerned about,” Tolivar told the Journal.

The CFO Journal newsletter was written by reporter Jennifer Williams and published Aug. 25.