(Bloomberg) -- Cava Group Inc. is planning to further expand its footprint in the Chicago area and other areas of the Midwest, making a contrarian bet that the region will reverse population declines that have plagued it in recent years.

The Mediterranean chain on Friday opened its first Chicago location — also its inaugural restaurant in the Upper Midwest — after eyeing the market for about nine years, Chief Executive Officer Brett Schulman said in an interview Friday. 

Cava is seeing a “rebirth of the Midwest” that’s brewing as startups set up in the region and people move back seeking cheaper living costs, he said.

“We think we’ve got a lot of expansion here in Chicago,” Schulman said Friday at the location’s opening, as about two dozen people queued up outside. “We haven’t announced any other cities, but we’re looking all across the Midwest.”

Cava, which has more than 300 locations across the US, tries to enter new markets with at least three new restaurants. Its first in the Chicago area is in Wicker Park, a residential neighborhood located northwest of the city’s Loop office district. The second one will be in Vernon Hills, Illinois, a suburb north of Chicago. The company tends not to open locations in core office districts, Schulman said.

Local Struggles

Chicago and its suburbs have struggled with persistent crime and high-profile corporate departures including billionaire Ken Griffin’s Citadel, Boeing, Caterpillar and the local offices of Tyson Foods. The city’s population is shrinking and the Loop is still facing high vacancy rates, with office occupancy hovering around 56%, according to the Chicago Loop Alliance, a local business association.

Cava’s Chicago location features greenery, warmer colors and cushions on the back of booths that the chain hopes will appeal to work-from-home types who want to get out of their homes for a lunch break, Schulman said. 

Hybrid workers “don’t want to necessarily be holed up in their house all day, and they might want to get out and actually eat their meal in our dining room,” he said. 

Older locations had a more “industrial chic” atmosphere, Schulman said, that was less conducive to lingering. Cava is looking to capture those trading down from pricier sit-down restaurants while providing an option for people who want to upgrade from fast food, according to the executive.

The chain, whose menu includes dishes such as a harissa honey chicken bowl, went public in June. Its shares were up 46% this year through Thursday’s close and rose about 10% Friday.

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