What is the cost to open a Cava franchise in the UK?

Cava is a fast-casual restaurant chain, known for its customizable Mediterranean-inspired dishes such as grain bowls, salads, and wraps. With a focus on healthy eating and fresh ingredients, Cava has become a popular choice in the fast-casual dining segment. If you’re interested in opening a Cava franchise in the UK, here’s a detailed look at the costs and other essential details involved in the process.


Initial Franchise Fee

The initial franchise fee for opening a Cava restaurant franchise in the UK can vary depending on factors such as location, size, and the local market. The typical franchise fee ranges between £25,000 to £50,000. This fee grants you access to the Cava brand, proprietary systems, and support.

Total Investment

Opening a Cava franchise involves significant investment, which includes various costs that are necessary to get your business up and running. On average, the total investment required to open a Cava restaurant in the UK can range from £500,000 to £800,000. This includes the following breakdown:

  1. Real Estate and Lease:
    • The cost of securing a suitable location will vary significantly based on the city and size of the restaurant. Generally, this could range from £100,000 to £300,000.
  2. Renovation and Equipment:
    • Renovating the restaurant to fit Cava’s brand aesthetic and equipping it with necessary kitchen tools and furniture can cost between £150,000 and £250,000.
  3. Franchise Fee:
    • As mentioned earlier, the franchise fee typically falls between £25,000 and £50,000.
  4. Initial Inventory:
    • The cost for initial inventory, including food ingredients, packaging, and other essentials, is usually around £10,000 to £20,000.
  5. Training and Support:
    • Cava provides franchisees with extensive training and support, which can cost an additional £10,000 to £20,000.
  6. Marketing and Advertising:
    • The cost of local marketing and advertising to promote your Cava location may be around £5,000 to £15,000.
  7. Miscellaneous Costs:
    • Other costs such as insurance, legal fees, and business setup expenses can amount to an additional £10,000 to £20,000.

Ongoing Fees

Once you’ve opened your Cava franchise, you will be required to pay certain ongoing fees:

  1. Royalty Fees:
    • Cava charges a royalty fee that typically ranges from 5% to 7% of your gross sales. This is a percentage of the revenue you generate and is paid regularly to the franchisor.
  2. Marketing Fees:
    • In addition to the royalty fees, franchisees must contribute to the marketing fund, which is usually around 2% to 4% of your gross sales. This fee helps fund national and regional advertising campaigns.

Other Considerations

  • Franchise Term:
    • The initial term of the franchise agreement is typically 10 years, with the possibility of renewal depending on performance and mutual agreement.
  • Support Provided:
    • Cava offers extensive support to franchisees, including training programs, operational support, marketing strategies, and supply chain management. This ensures that franchisees maintain consistent quality and efficiency.
  • Site Selection:
    • Cava provides assistance in site selection to ensure that the location is suitable for attracting customers and generating consistent revenue.
  • Financial Requirements:
    • Franchisees must demonstrate a strong financial background. Typically, you’ll need a minimum net worth of £500,000 to £1 million and liquid assets of at least £200,000 to £300,000.
  • Timeframe:
    • The process of opening a Cava franchise can take between 6 to 12 months, depending on the location and construction timeline.

Disclaimer:

No guarantee of accuracy. All figures are approximate and may vary depending on the location, market conditions, and specific franchise agreements.

Leave a Reply

Your email address will not be published. Required fields are marked *

Apply For Brands