Cava intends to enhance its loyalty program by incorporating enhanced personalisation capabilities to boost digital engagement. Pilot tests are scheduled to commence before the year's end, with a full launch planned for the end of the following year.
GLOCava, a fast-casual restaurant chain, might be smaller compared to industry giants, but it’s aiming to challenge the big players in the sector through its investments in the digital realm.
During a call accompanying its first Q2 FY2023 earnings release after its significant initial public offering (IPO) in June, Cava discussed how its revamped app, new digital ordering website, and proprietary in-house microservices platform are positioning the brand for omnichannel success.
Cava’s President and CEO, Brett Schulman, shared that this adaptable platform is poised for sustainable growth, and the initial investment will generate leverage as they expand. He noted, “We believe it’s an in-house digital platform few restaurants our size, much less many larger brands, have.”
Indeed, the outcomes demonstrate this claim. Despite having 279 locations by the end of the quarter, Cava revealed that its digital revenue mix reached 36%. This is comparable to competitor Chipotle, which operates over 3,200 locations and recently reported that digital channels contributed to 38% of its food and beverage revenue.
As part of its eCommerce strategy, Cava has established dedicated catering and digital ordering facilities, separate from its physical stores. Schulman elaborated, “We have 10 digital kitchens that support centralized catering hub production and digital order pickup, along with five hybrid kitchens that offer standard in-restaurant dining and digital pickup, with expanded kitchens to support centralized catering production.”
Digital pickup orders constitute a notable portion of total restaurant transactions. Data from a PYMNTS survey earlier this year indicated that 39% of restaurant customers placed their last order for pickup.
Furthermore, the adoption of digital platforms by restaurants is on the rise. Additional data from a PYMNTS survey revealed that digital engagement in the restaurant sector increased by 9% year over year among both high- and low-income consumers, and 2% among middle-income diners.
Cava also intends to enhance its loyalty program by incorporating enhanced personalization capabilities to boost digital engagement. Pilot tests are scheduled to commence before the year’s end, with a full launch planned for the end of the following year.
Such initiatives are significant, given that a majority of consumers are now participating in restaurant rewards programs. A PYMNTS survey found that 51% of respondents were using restaurant loyalty programs.
Schulman emphasized, “We are in the early phase of relaunching our [loyalty] program,” adding that the program will be aimed at building stronger connections with guests, fostering more frequent and meaningful experiences that create value for both customers and the business.
