CAVA: Ted Xenohristos and Brett Schulman | How I Built This with Guy Raz

Intro

In this episode of “How I Built This with Guy Raz,” host Guy Raz interviews Ted Xenohristos and Brett Schulman, the co-founders of CAVA, a national chain of fast-casual Mediterranean restaurants. Ted and Brett share their journey of starting as a small Greek taverna in suburban Washington, DC, and growing CAVA into a successful business with over 280 locations. They discuss the challenges they faced along the way, including permit violations, near bankruptcy, and money-losing ventures, as well as the strategies they used to turn their business around.

Main Takeaways

Building a Culinary Heritage and Community Gathering Place

• Ted and his business partners met in a Greek Orthodox youth group and grew up eating Greek food.
• They started CAVA with the intention of sharing their culinary heritage and creating a gathering place for the community.
• Their vision was to offer authentic, soulful, satisfying, flavorful, and healthy Mediterranean cuisine.

Overcoming Struggles and Challenges

• Cava faced struggles such as permit violations, near bankruptcy, and money-losing ventures.
• They had to navigate through financial difficulties and find creative solutions to keep the business afloat.
• Despite the challenges, they believed in their vision and were determined to make CAVA successful.

Partnerships and Marketability

• Bringing in a partner like Brett Schulman, who had experience building a brand, helped turn the struggling business around.
• CAVA expanded its marketability by selling dips and spreads in grocery stores, amplifying its brand presence.
• Partnerships and complementary skill sets played a crucial role in the success of CAVA.

Transition to Fast-Casual and Expansion

• CAVA transitioned from a full-service restaurant to a fast-casual concept, focusing on handcrafted dips and spreads.
• They opened their first fast-casual location in Maryland and faced initial challenges in educating people about the concept.
• Despite the challenges, CAVA expanded to new markets, including Los Angeles, and acquired a failing restaurant chain to accelerate its growth.

Lessons Learned and Key Success Factors

• Starting a restaurant business without prior experience can be challenging, but partnerships, marketability, and a focus on specific aspects of the business can lead to success.
• Precise cost analysis, monitoring, and leveraging tools like QuickBooks can increase profitability in low-margin businesses.
• Building a strong team, caring about employee growth, and setting them up for success are important factors in the success of a restaurant business.

Summary

Building a Culinary Heritage and Community Gathering Place

Ted Xenohristos and his business partners, Dmitry and Ike, met in a Greek Orthodox youth group and grew up eating Greek food. They started CAVA with the aim of sharing their culinary heritage and creating a gathering place for the community. Their vision was to offer authentic, soulful, satisfying, flavorful, and healthy Mediterranean cuisine.

Overcoming Struggles and Challenges

CAVA faced various struggles, including permit violations, near bankruptcy, and money-losing ventures. However, Ted and his partners were determined to make their vision a reality. They navigated through financial difficulties and found creative solutions to keep the business afloat. Their perseverance and belief in their vision ultimately paid off.

Partnerships and Marketability

Bringing in a partner like Brett Schulman, who had experience building a brand, played a crucial role in turning the struggling business around. CAVA expanded its marketability by selling dips and spreads in grocery stores, which amplified its brand presence. Partnerships and complementary skill sets were key factors in the success of CAVA.

Transition to Fast-Casual and Expansion

CAVA transitioned from a full-service restaurant to a fast-casual concept, focusing on handcrafted dips and spreads. They opened their first fast-casual location in Maryland, facing initial challenges in educating people about the concept. Despite the challenges, CAVA expanded to new markets, including Los Angeles, and acquired a failing restaurant chain to accelerate its growth.

Lessons Learned and Key Success Factors

Starting a restaurant business without prior experience can be challenging, but partnerships, marketability, and a focus on specific aspects of the business can lead to success. Precise cost analysis, monitoring, and leveraging tools like QuickBooks can increase profitability in low-margin businesses. Building a strong team, caring about employee growth, and setting them up for success are important factors in the success of a restaurant business.

Conclusion

Ted Xenohristos and Brett Schulman’s journey of building CAVA from a small Greek taverna to a national chain of fast-casual Mediterranean restaurants is a testament to their perseverance, vision, and strategic decision-making. Despite facing numerous challenges, they overcame them through partnerships, marketability, and a focus on quality and authenticity. CAVA’s success story serves as an inspiration for aspiring entrepreneurs in the restaurant industry.