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Diving certificate:
- Cava will roll out an update to its loyalty program nationwide in October, slightly earlier than planned, CEO Brett Schulman said in an interview with Restaurant Dive. The chain had previously projected the program would roll out by the end of the year.
- Cava has been testing this program in Texas since December 2023 and in the Carolinas since earlier this year. The program offers multiple rewards options from a catalog of eligible menu items, Schulman said.
- On the chain Conference call on the second quarter resultsSchulman said the brand expects the new loyalty program to “significantly increase first-party data and help us create more frequent, relevant experiences that drive, mix and verify traffic.”
Diving insight:
In late 2023, Cava switched from a transaction-based model to a points-based program. Members earn 10 points for every dollar spent and can load “food, beverages, store credit, percentage discounts and other available items” into their accounts, according to the Terms and ConditionsSchulman said in an earlier interview that this change was a placeholder while the brand worked on a further developed version in test markets.
The test program, which is also described in the terms and conditions, offers rewards in several levels, ranging from drinks (400 points) to main courses (1,850 points).
Schulman said in an interview that the loyalty update will be similar to the test program but will bring some minor changes to the rewards catalog, so the specific point values listed in the pilot program’s terms and conditions may change.
“This will be the first phase of a multi-phase initiative as we introduce new and exciting rewards in the coming months,” Schulman said.
Tricia Tolivar, the brand’s chief financial officer, said on Cava’s earnings call that the company had not factored any expected changes in customer traffic or sales from the updated rewards program into its financial forecast.
