In the first episode of 2026 for Fast Casual Nation, hosts Paul Barron and Cherryh Cansler sat down with Brett Schulman, Co-Founder and CEO of CAVA, to discuss how the Mediterranean fast-casual chain is navigating economic headwinds while maintaining impressive growth. With over 430 locations and counting, CAVA has become a standout success story in an industry facing widespread traffic declines and consumer uncertainty.
Schulman’s approach to the current economic climate is refreshingly long-term. While acknowledging the “K-shaped economy” and challenges like inflation, tariff uncertainty, and a softening job market, he pointed to tailwinds including potential rate cuts, government stimulus, and AI-driven productivity gains. “We’re always trying to take a long-term approach no matter what the short-term cyclical changes are,” Schulman explained. “It’s so important for us to stay steadfast on our long-term strategy and make sure we’re building this and making decisions for the next decade and beyond, not the next quarter.”
One of CAVA’s most notable differentiators is its stance on tipping—or rather, the absence of it. Unlike many fast-casual competitors who’ve embraced digital tipping, CAVA pays its team members between the 75th and 95th percentile in every market and doesn’t pass that cost onto customers. When the company tested tipping during the labor shortage, they found it didn’t meaningfully improve retention. “We don’t feel like we’re providing an extra service above and beyond what we are compensating our team members for,” Schulman said, adding that the decision also eliminates the “tipping fatigue” customers experience when asked to tip before receiving service. The approach appears to be paying off—CAVA has achieved over 20% traffic growth in recent years while the industry overall has seen transactions decline since 2019.
Price discipline has been equally central to CAVA’s strategy. While the average restaurant company has raised prices 34% since 2019 (compared to 27% CPI growth), CAVA has kept increases under 17%—less than half of many competitors. Schulman announced that the company isn’t raising prices in 2026 on their base chicken and falafel bowls, which range from $10.65 in markets like Mobile, Alabama to $12.95 in New York City. “I think it’s incumbent upon the industry to find ways to deliver greater value and mitigate that cost increase to be a better alternative from people cooking at home,” he noted.
Looking ahead to the rest of 2026, CAVA is targeting at least 16% compound annual unit growth, translating to over 70 new restaurants. The company is particularly focused on Midwest expansion, having recently entered Chicago, Detroit, Indianapolis, and Pittsburgh in 2025, with Ohio slated for 2026. Schulman attributed the brand’s ability to succeed across diverse markets—from urban Miami to Pensacola beach towns—to two key factors: strong performance across multiple dayparts (46% of revenue comes from dinner) and an accessible value proposition with unlimited toppings included.
When it comes to technology investment, Schulman is taking a decidedly human-centered approach. While bullish on data infrastructure and AI applications for forecasting and scheduling, he’s wary of over-automation. “If you solely focus on removing friction and using technology to remove friction, you risk removing the joy and the humanity and the hospitality of the experience,” he cautioned. It’s this balance—between operational efficiency and authentic connection—that seems to define CAVA’s approach as the fast-casual segment continues to blur lines with both QSR and casual dining. As Schulman put it, “People come back to restaurants for great food, great service, and then layered with that differentiated point of view that you have in the world as a brand.”
