Restaurant Industry Insights

The Shift Toward On-Premises Restaurant Dining

Do you remember when all we could talk about was how restaurants could increase their off-premises traffic and get in on the takeout and delivery craze? According to the National Restaurant Association’s State of the Restaurant Industry 2025, the pendulum is swinging back to on-site dining. 

The report found that 87% of casual dining operators, 90% of fine dining operators, and 60% of QSR operators believe building an on-premise business is essential to their success and even more critical than takeout and delivery. 

What happened? 

It all comes down to the experience. The National Restaurant Association’s survey also found that 47% of limited-service customers and 64% of full-service customers feel the restaurant experience is more important than the price. 

Restaurants Enhancing Their Ambiance

When Cava starts moving in a particular direction, it’s always a good idea to pay attention. As one of the fastest-growing brands in the U.S., it’s seen incredible growth since its IPO in 2023. 

In their full-year fiscal 2024 report, Brett Schulman, Co-Founder and CEO, said, “2024 was another year of extraordinary growth and success for CAVA as we established Mediterranean as the next major cultural cuisine category and delivered our unique value proposition, that is clearly resonating with modern consumers.”

Some of their highlights include:

  • Restaurant sales grew 13.4%, including traffic growth of nearly 9%
  • Opened 58 new restaurants
  • Generated an average unit volume of $2.9 million
  • Revenue grew 28.3% to $225.1 million
  • Same restaurant sales growth came in at 21.2%
  • 64% of orders come through dine-in traffic

In an interview with Restaurant Dive, CFO Tricia Tolivar said several factors are responsible for the sales momentum. These factors include their social media marketing, the increasing popularity of Mediterranean cuisine, entering new markets, and the guest experience.

Not bad. So, what is it doing now? 

In addition to rolling out new technology, it’s also developing new store formats, improving its ambiance, and initiating Project Soul. 

What Is Project Soul?

Project Soul is a design initiative that incorporates a warmer color palette, softer seating, wood features, and a welcoming atmosphere. It provides an ambiance that suggests patrons should stay awhile and enjoy each other’s company and the comfort the space provides. 

It prioritizes the human experience. 

In-House Events

The National Restaurant Association’s survey also found that diners are interested in special occasions and events. About 70% of respondents showed interest in tasting events featuring curated menu offerings. Other potential activities to draw in new and returning guests included cooking classes and private dinners. 

When it all comes together—an enchanting ambiance, exceptional food, a friendly culture, and engaging experiences—you have the key ingredients to a successful enterprise. 

Enhancing Your Restaurant’s Ambiance

Are you ready to join CAVA and provide your guests with an even better experience? Some essential considerations when embarking on this journey include the following. 

Your Target Market

Do you know, really know, your clientele?

If you need additional information, turning to your POS system and loyalty rewards program can help. 

How do you create a memorable experience?

Consider your market’s preferences and what you stand for, and then align the many elements that make up your aesthetics. Consider all the effects your choices of fabrics, textures, light fixtures, music, and tableware have on the overall look and feel and how they enhance your brand. 

Guests should know what you stand for, your voice, and the experience they can look forward to when they walk through your doors and check out your social media platforms. 

The Human Touch 

On CAVA’s earnings call in November 2024, Schulman said, “The demise of the dining room is greatly exaggerated.” He also added, “As technology and automation infiltrate everyday life and the front lines of more concepts, consumer touchpoints are becoming increasingly transactional, removing the joy [and] humanity from the experience. We believe technology should enhance, not replace, the human experience and we’re leveraging it to create warm, personal moments across our physical and digital channels and to support our team members in engaging and connecting with our guests.” 

Those statements make it clear why CAVA is one of the top contenders in the fast-casual segment. 

At EMERGING, we act as a strategic partner, supporting technology-driven transformation while maintaining the human connection in the restaurant and entertainment sector. To learn more about scaling your ventures through our strategic growth resources, mentorships, and invaluable connections, contact EMERGING.

 

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