Shift in Customer Behavior: Cava and Sweetgreen Witness Decline in Delivery Orders
Fast-casual chains Cava and Sweetgreen are experiencing a decline in delivery orders as customers opt to pick up their own food, indicating a trend towards more budget-conscious dining. Delivery orders tend to be more expensive due to added fees and tips, making pick-up orders a cost-saving option. While this shift benefits consumers, it can impact restaurants' revenue as delivery orders typically have higher totals. Sweetgreen reported weaker-than-expected sales in Q2, partly due to the decline in delivery transactions, while Cava's full-year forecast is cautious. Even Chipotle saw a drop in delivery service revenue. However, third-party delivery companies like Uber and DoorDash continue to see strong demand.