CAVA CEO: Restaurants must adhere to "rigorous" food safety standards

Driving the news: Schulman acknowledged Tuesday in an Axios interview that "there's just broader concerns around leafy greens" that temporarily dampened CAVA sales in recent weeks — but he said traffic is bouncing back and that the Mediterranean fast-casual chain's food has not been affected.

• "We hold our suppliers to rigorous food safety and quality standards, including third-party audits, certifications and, for certain suppliers, we do on-site visits that we conduct ourselves," Schulman said. "We've always taken a proactive approach."

Catch up quick: A cyclospora outbreak linked to since-recalled Taylor Farms iceberg lettuce supplied to the likes of Taco Bell involves more than 6,300 cases dating back to June, according to the FDA's latest update.

• Separately, on Sunday, Taylor Farms said it was recalling finished food products containing jalapeños as the FDA says it has tracked 345 cases of salmonella — including 36 hospitalizations — stemming from an outbreak linked to jalapeños distributed by Coast Citrus Distributors.
• Taylor Farms said that as of Sunday it was not aware of any reported illnesses linked to its products, is no longer sourcing from Coast Citrus Distributors, and was seeking alternative suppliers.

Schulman confirmed that CAVA sources certain products from Taylor Farms, but said "we do not source any ingredients from Taylor Farms-impacted facilities or farms, and we do not source from Taylor Farms Mexico," the source of the iceberg lettuce recall on July 17.

Threat level: Leafy greens represent "one of the least regulated parts of the food system," Jaydee Hanson, policy director of the Center for Food Safety, told Axios.

• Poor sanitation practices — including the proximity of livestock to crops — can serve as a springboard for deadly pathogens, Hanson said.

The safety concerns show why "it's more important than ever that the restaurant industry — working with the supply chain along with our governmental partners — continue to drive clear and transparent communication to restore that trust and strengthen that trust with guests," Schulman said.

• He noted that CAVA uses tracing software to monitor its supply chain "because food safety is foundational to the relationship with our guests, and we have to earn that trust every day."
• Asked whether CAVA will continue doing business with Taylor Farms — which was also linked to a 2024 E.coli outbreak involving slivered onions provided to McDonald's — Schulman said CAVA is "constantly" auditing and reviewing its suppliers "to ensure that they're adhering to our level of food safety standards."

• "We continue to review those suppliers on a regular basis to ensure that they're the right suppliers for us moving forward," Schulman said.

The big picture: CAVA's stock is down 16% over the last month as investors fret about customers shying away from vegetables. But the company is still in growth mode, adding dozens of restaurants this year, and is hoping to maintain the momentum it enjoyed in its early years after going public.

• In its second quarter — which ended around the time the cyclospora outbreak began in July — CAVA showed significant growth, delivering a 9% same-store sales increase.
• That was higher than the 7.2% growth expected by S&P Global Capital IQ.
• Guest traffic at comparable restaurants grew 5.3%.
• Schulman said the company appealed both to higher-income customers and to folks who were looking to save: "We can welcome everyone to the table, and they feel like they can get great bang for the buck," he said.

The bottom line: CAVA's growth trajectory may depend on whether it can continue maintaining a strong safety track record.