dinogreeves
3 months ago
I was at CAVA last night for late quick dinner in Pasadena on Lake Avenue at 9 PM, the place was half full, spend about 40 dollars between my daughter and I, the place had 90 seating capacity, at the time we went there 25% of the tables were all full, though it looked like they had a very busy day, open boxes everywhere some of there salad dressing bottles were all empty. Chipotle across the street was empty, the trend is changing and I actually enjoyed my food this time around, ordered Greek Chicken Salad with everything on it, what makes CAVA different besides the food is there refreshments are not standard Coke or Pepsi, they use refreshments actually made with sugar cane. Mind you this area of Pasadena has many choices for restaurants so the competition is there, but also gives people choices, actually a very good spot of CAVA, being in area with great exposure, South Pasadena is a walking distance with high net worth demographics, also San Marino which is extremely high net worth small population, both South Pasadena and San Marino is old money. Here is some math opens at 11 and closes at 10, if the store is during opening hours 40% of the time occupied around the opening hours that is 40 people, remember one must account for rush hours and downtime, 800 dollars an hour for 11 hours equates to 8,800 dollars per day, my guess is CAVA just from that location would be doing closer to 18,000, if not more, the rent would be around for a 3000 square feet in that area 30,000 dollars a month payroll for 8 people around the clock at 20 dollars an hour, about 2000 dollars payroll each day, 60,000 dollars monthly, electric and gas, 5000 a month. One would think that CAVA is making bank on Location like on Lake in Pasadena.
dinogreeves
3 months ago
Do you know that it took Chipotle 20 years to where it is now, I never said overnight nor 5 years, it will take 15 plus years to get to where Chipotle is, if they execute with their plans, have you ever been to their stores, do you know their growth story? I personally don't like Chipotle food nor do I like CAVA's food, but there is a trend that follows these two, CAVA stores are always busy and so is Chipotle, their business model is very attractive and very profitable. 400 locations, 15% growth every year will give them approximately 750 locations at the end of 10 years, another 10 years will get them 1200 locations, who knows if they are profitable at most of their locations they might gear up for 20% growth after 5 years. Fact is people love their food, just like they did with Chipotle.