Greek and Mediterranean themed fast-casual restaurants seem to be the latest health food craze, with new tenants in the category popping up across the nation. With the average American prioritizing a sensible diet that utilizes all-natural ingredients, Greek cuisine fits the bill. Even the US News & World Report recently ranked the Mediterranean diet the No. 1 diet overall for the past four years. Greek dining is a category that can easily accommodate the fast-casual, assembly-line customization ordering format that is so popular with today’s consumers.
With Greek fare appealing to consumers’ health priorities, the dining category works well with other health-related co-tenants, including gyms and organic grocery brands. Greek food tenants also work well alongside other popular fast-casual eateries, in addition to ethnic-oriented restaurants. Upscale neighborhoods with multifamily developments, especially near colleges, are sought after for many of these brands, as the health-conscious Gen Z and millennial customer is the target audience. Urban metro locales are also ideal, especially with in-office tenancy expected to increase in the immediate future. Keep your eye out for CAVA, Greek From Greece Bakery-Café, The Hummus & Pita Co., The Great Greek Mediterranean Grill, The Simple Greek and Garbanzo Mediterranean Fresh to expand throughout the country.
CAVA raised $190M in funding in April, led by T. Rowe Price, to help its fast-casual restaurant with an aggressive growth plan of opening approximately 50 new units per year over the next two to three years, with 50+ units per year anticipated from 2025 onward. Expect the majority of these units to be conversions of Zoës Kitchen restaurants for the next two years, a brand which parent company CAVA Group, Inc., purchased three years ago. Expansion will be focused on CAVA filling in its existing markets in the Northeast, Southeast and West, and the chain will also expand into new areas in the Midwest. CAVA seeks 2,200 to 2,500 s.f. of space in higher end lifestyle centers and specialty grocery-anchored strip centers. The space should be either end cap freestanding with drive-thru pickup window access or a two-tenant pad site with drive-thru pickup window access. CAVA is looking to especially expand into suburban communities with an average household income of $75K, and an average age range of 35 to 45. Preferred co-tenants include grocers such as Whole Foods Market — where CAVA currently sells its own brand of packaged hummus dips — as well as Wegmans, Trader Joe’s or Publix, in addition to fitness brands and other food tenants, especially Chipotle and Starbucks. CAVA provides healthy customizable Greek/Mediterranean dishes where customers can choose their base of a bowl, pita or salad, as well as a choice of protein, toppings and dressings.
The Greek From Greece Bakery-Café (GFG) is hoping to open between 30 and 50 new units per year over the next three to four years, aided by the brand’s franchise development after it partnered with Fransmart in 2020. Its first franchise unit opened in March in Philadelphia, and further franchise growth is expected throughout the Northeast, including Massachusetts, New Jersey, New York and Pennsylvania, in addition to further expansion into Florida. GFG, which seeks to open units no larger than 2,000 s.f., is especially flexible with its square footage requirements, which include conversions. For example, the restaurant chain will convert 31 Dairy Barn Stores (a drive-thru convenience store located primarily in Long Island, N.Y.) into corporate-owned Greek From Greece drive-thru restaurants. The bakery/cafe ideally seeks ground-floor mixed-use inline or end cap urban street-front spaces on busy streets, or in lifestyle centers in suburban communities, ideally with outdoor patio dining space. Sites close to business districts, airports or universities are sought after, and preferred co-tenants include high-traffic restaurants, such as The Cheesecake Factory. The fast-casual brand, which sells alcohol and can accommodate late night foot traffic, is known for its extensive pastry selection made with ingredients imported from Greece and baked in-house, as well as authentic Greek cuisine, coffees and teas.
Although The Hummus & Pita Co. currently has just 10 units in the U.S., the restaurant recently signed on franchisees and is expected to expand with approximately 15 to 25 new units per year over the next three years. Markets within Los Angeles are especially being targeted, with the neighborhoods of Santa Monica, West Hollywood, Mission Hills and Studio City being eyed. Continued growth is also anticipated in Alabama and Atlanta, with possible growth into Florida, South Carolina and Tennessee. Columbus, Ohio, and New York City will also see unit growth, followed by a push into Denver and Texas. Hummus & Pita Co. seeks inline or end cap second generation restaurant space in the 1,200- to 2,200-s.f. range, on metro street-front mixed-use, strip mall or grocery-anchored spaces, within “trendy” urban neighborhoods near multifamily developments. Areas should have a large proportion of 18- to 30-year-olds and an ethnically diverse demographic. Ideal cotenants include other fast-casual brands, such as Chipotle. The chain’s menu is 75% vegan and is known for its “Americanized” twists on standard Greek favorites, such as “avoganoush,” a combo of eggplant and avocado.
The Great Greek Mediterranean Grill expects to open between 15 and 20 new units per year over the next three years. The fast-casual brand looks to expand nationwide with a current focus on the South Florida and Arizona markets. Look for Nashville, Tenn., Atlanta, Louisiana, Raleigh-Durham, N.C., the Northeast areas of Washington, D.C., New York City and Boston to also be eyed. The Great Greek seeks space in the 1,800- to 2,200-s.f range, in second generation end cap restaurant sites with patios and outparcels that have adequate parking space in front. Sites tend to be in strip malls, grocery-anchored shopping centers and lifestyle centers in upscale suburban communities of primary and secondary markets. Preferred co-tenants include Chick-fil-A, Panera Bread, Starbucks, Chipotle and major supermarket chains. The Great Greek is famous for its contemporary version of Greek classics, with all of the food scratch made, including the dips and sauces.
WOWorks (owned by the investment firm, Centre Lane Partners) acquired two fast-casual Greek-oriented brands recently — The Simple Greek in March and the Garbanzo Mediterranean Fresh brand in December. The parent company, which also owns Saladworks and Frutta Bowls, expects to aggressively expand all of its restaurant brands, taking advantage of the national need for fresh and healthy dining options. WOWorks will continue to open the Greek restaurant units, at a rate of approximately 10 to 20 new units per year per brand, in and near college campuses with other healthy food dining options nearby, such as Aloha Poke Co. Ideal locations are high-visibility convenience centers, lifestyle centers or mixed-use sites, including urban storefront spaces. The Simple Greek and Garbanzo will also eye airports, military bases and hospitals for units. Potential sites should be in close proximity to yoga studios and gyms, such as Eat the Frog Fitness, as the prime growing demographic for Simple Greek and Garbanzo Mediterranean Fresh is the Gen Z customer interested in health and wellness activities.
Garbanzo looks for end caps with patio space in the 1,800-s.f. range, while Simple Greek seeks space up to 2,400 s.f., also with a patio. Garbanzo Mediterranean Fresh is currently eyeing franchise growth in Indianapolis and Cincinnati, as well as Lexington and Louisville, Ky. The Simple Greek is eyeing space in Boston, Milwaukee, St. Louis, and Tampa, St. Petersburg and Jacksonville, Fla. Garbanzo Mediterranean Fresh is known for its high-quality, made-from-scratch ingredients with plant-based proteins. The Simple Greek is famous for its modernized versions of traditional Greek foods in a build-your-own order format.
