What Cava’s CEO Learned from the ‘Painful’ Acquisition of Zoe’s Kitchen

In 2018, Cava Group CEO Brett Schulman faced a significant challenge: integrating two vastly different company cultures after acquiring Zoe’s Kitchen in a $300 million all-cash deal. The acquisition, while transformative for Cava, was an arduous process that tested the company’s leadership.

Cava, a fast-growing Mediterranean fast-casual chain, was known for its aggressive startup energy and entrepreneurial spirit. In contrast, Zoe’s Kitchen, though three times Cava’s size, was a struggling public company with financial difficulties and low employee morale. As Schulman described it, Cava was “the minnows swallowing the whale,” and the culture clash soon became apparent.

The weight of Zoe’s internal struggles began to affect Cava. Leadership quickly realized that to succeed, they needed to reevaluate the newly merged company’s culture and realign it with Cava’s core mission: bringing “heart, health, and humanity to food.” Schulman noted that embedding this philosophy into an organization with 10,000 employees was an overwhelming task.

Despite the difficulties, the acquisition became a valuable learning experience. Schulman emphasized the importance of prioritization, strategic planning, and culture alignment. After a six-hour whiteboarding session in mid-2019, the executive team distilled Cava’s strategy into five key pillars. Schulman focused on the top two priorities, delegating the rest to trusted leaders.

By August 2019, Cava saw revenue improvements, and Zoe’s Kitchen posted its first positive financial comp since 2017 by early 2020. Schulman’s approach—prioritize, simplify, and focus—was critical in turning around the merged company.

Reflecting on the experience, Schulman now seeks leaders with high emotional intelligence and broad business acumen, recognizing that the right team is essential for navigating cultural integration and business growth.

Source: Fortune. com