CAVA GROUP, INC. 
(MT Newswires) -- Brett Schulman, co-founder and CEO of Cava, reports 11% growth in in-store sales. For 2024, Cava forecasts restaurant margins of 22.7% to 23.3%, slightly lower than in 2023. This decrease is attributed to investments made by the company, particularly in employee salaries and benefits.
Schulman also addresses the issue of price increases, confirming that the last increase took place in January 2023, with a rise of between 2.5% and 3%. For 2024, no additional price increases are planned to offset the impact of California's AB 1228 legislation (known as the FAST Act), which raises the minimum wage to $20 per hour or more. Cava intends to absorb the additional costs rather than pass them on to customers.
In terms of inflation and costs, Schulman says that inflationary pressure has been moderate and that the company has benefited from a direct supply chain for over 87% of its ingredients. Cava opened a new 55,000 sq ft facility in Southwest Virginia, in addition to its existing facility in Laurel, Maryland, to produce artisan recipes and products such as dips and spreads.
Finally, Cava plans to open between 48 and 52 new restaurants in 2024, which will require constant hiring and internal promotion opportunities to manage these new locations. Schulman concluded by highlighting Cava's leadership position in the Mediterranean category and the company's ability to offer cuisine that unites taste and health, responding to demographic trends and preferences for healthy eating without compromise.
