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FRGI Fiesta Restaurant

Participants
Raphael Gross Managing Director at ICR
Rich Stockinger President and Chief Executive Officer
Danny Meisenheimer Senior Vice President, Chief Operating Officer and Pollo Tropical President
Lynn Schweinfurth Senior Vice President and Chief Financial Officer
Nick Setyan Wedbush Securities
Will Slabaugh Stephens
Brian Vaccaro Raymond James
Nicole Miller Piper Jaffray
Call transcript
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Operator

Good afternoon, and welcome to Fiesta Restaurant Group, Inc.

Third Quarter 2018 Earnings Conference Call. Today’s conference call is being recorded. At this time, all participants are in a listen-only mode.

Following our presentation, we will conduct a question-and-answer session. for that provided up to be questions. your will you time at queue Instructions like the to Raphael now would I turn Director ICR. Gross, call at Managing to over

Raphael Gross

release Group’s Good Fiesta close third was issued quarter today. afternoon, after Restaurant XXXX everyone. market the earnings

have it be If the not found Relations Investor accessed under www.frgi.com, website, the already section. on it, you can Company’s

forward-looking forward-looking statements is can the results Before the or in implied call, financial be accordance evaluating and statements financial historical Important budget, factors the forward-looking in today’s be company and expressed in from Please that found the today, with give during be the can assurance which we differ costs in call should the not during measures cause operations. on GAAP statements from materially the Actual that isolation differ that non-GAAP discussion note limitation, begin, can of reconciliation discussed conference statements I’d SEC and by can company be no those statements will without available filings. in such its prepared business Company’s of and believes position useful certain based plans, make include, could results comparable will actual correct. considered projected like such for Company’s substitute or Any management be that performance. various such regarding measures to information. GAAP results information earnings as future release. materially not to inform These for a or future prove statements of you and objectives that Company’s expressed to what company strategy, are may will the operations, results is forward-looking outcomes in forecasted and

Meisenheimer; Stockinger; the will Schweinfurth. Financial On to Chief Vice call President Senior Rich. President, Officer today now Tropical President Rich Officer, I Senior turn are And Chief Officer, and Operating the Lynn and President, and Executive Pollo Vice Danny Chief call and over

Rich Stockinger

you, elevate we foundation our onset Since model a renewal intensely working growth. for to and Ralph. a Pollo and serve business future the Fiesta’s develop plan, Thank as can long-term of Taco that have been strong

led Although near-term experiences restaurant profit hospitality these a us comparable food per to guest have increased improved through and also efforts required track and enhance record quality have investments, and to they sales substantial enabled have transaction. build momentum of

portfolio. have sales, incremental at Now the growth adding topline, on are generating restaurants, and our that stabilized we expanding focusing off-premise consistently comparable restaurant existing our restaurant margins, we optimizing sales

and working Pollo expansion refining XXXX, are For margins non-core future market Tropical the and on at we beyond brand increasing Taco. sales

restaurant prior EBITDA consolidated growth. the marks positively initiatives revenues last The hurricanes positive adjusted gains much detailed many increase business the periods Total possible – while impacted of including results on were comparable These third rose that have still profitability as well accomplished. as calls, but quarter XX.X%. impacted were prior by our a year’s many to be that more there’s made XX.X%, through we sales momentum, comparing was continuation that by against

the discuss Florida recorded in on sales benchmark with its we the third of Black Casual Fast the first, period. third working X.X% sales core impact in and Broward positive strategic to overview continues of brand high basis with consecutive sales including points second X.X% last lapping Quarterly, of quarter County. approximately comparable the We gain markets and of year sales with growth of tailwind XX some as on County are trends Taco restaurant sales the the Positive Hurricane with space. at inclusive growth exceeded quarter to our a a guest exciting resonate we prior comparable XX.X% comparable Starting year. sales now next comparable traffic Miami-Dade of evolving able X% in growth our reported continued the from Irma year to level as with with restaurant X.X% fact, gain, third a repositioning a solid by shortly. quarter Hurricane In X% trends will Box Harvey things basis. Pollo, quarter. into the start brand strong maintain me let were in But into

that In to benchmark basis impacted lapping partially by on were a year. the Hurricane Harvey our addition, in exceeded basis. last comparable concentration Again, points Black quarterly restaurant of Box due Texas comparable Casual transactions Fast XXX restaurants by Houston positively

the and to we see We will believe guests to comparable trajectory Danny thereafter, in on trends I turn to of will through initiatives Therefore Pollo lead attracting greater now that a our With improving new loyal call will an I results transactions. comparable are increasing – detailed before of overview an update Lynn and we initiatives. for financial provide continue restaurant transaction goes over that, Taco more detail.

Danny Meisenheimer

continues Pollo brands, Citrus-marinated and in Rich. transactions the the whole platform during continues third Together, areas the you, about bar demographic of emphasis chicken work a Thank hospitality. dedication to quarter. broaden crispy and quality guest to of X% of are represented and taking to Through level. food new Pollo our these to raise the appeal team, experience all tireless XX% the

our local awareness marketing, and media drive frequency. social broadcast, of to we and with store guests mix We’re engaged

three highest Pollo back meal introduced Crispy were as well Specifically, item. sandwiches with June handheld deals as selling $XXX, in chicken that remains we crispy promoted Bites for our our

the Wildcard hospitality, such including Marination speed engagement extension Time Pollo team have our Social of as and our daily continued points and quarter, main Operationally, program the service. the Weekends. since of media TropiChop of during guest Tuesdays, Mondays, outreach Wednesdays been and deals launching renewal focus

progress, to can we continue to make improve. do we still more While

engagement a guest out last tremendous quarter there’s help managers our quickly. to guest been rolled for general platform experience updated and Our more any opportunities address

point in and process improve access throughput the tablets drive throughs. currently of sale speed upgrading are to portable of We our payment to our of service in

Turning to expense management.

working including without food with cost, improving to new on quality. progress chicken our making reduce cost high providers are We impacting

on updates some you initiatives. give and technology other now off-premise me Let

will be in loyalty piloting My Pollo our coming loyal our the updated program weeks. mobile in We app

South BJ’s including gift gift We this launched year. and anticipate with cards the have kiosk, end in earlier order begin month, and in XXXX, third-party the we we will the believe further will accuracy. which potentially cards wholesale digital improve before testing Clubs in early piloting weeks Florida average of We In and with expansion coming XXXX. by delivery ready Sam’s increase clubs, ticket

appropriate in and building our making infrastructure marketing and in operations, Lastly, staff out put in sales the place. we’re great progress catering

Our team ready social and now holiday corporate season. target is to upcoming for the gatherings

enhance in to in brand propel over leverage are work and markets. restaurant plan we the to forward our will helping the that, planning and summary, hospitality continue kitchens now call initiatives to are to ahead. in and years designated Rich. other months Pollo performance centralized turn I’ll utilize South Florida We improve the With hub In to the further and restaurants

Rich Stockinger

Thanks, Danny.

plan. across several the Taco renewal menu cornerstone improvements Tacos around categories. related initiatives with now the Let’s to of review efforts Product turnaround centered are proteins enhancements

added guests. expand. to relevant continued of support are TC and the Program Kickin’ to by All-day also During like Nachos Shareables duals, at which Patio our quality meal to the the the appeal on our of our and to we breakfast a Tacos great Tacos high being the continued further promise dozen the delivers deliver build brand our traction broaden that solutions value. menu and to and promoted loaded Grande quarter, we fresh ingredients

technology. and off-premise to Turning

indications in Early We we’re and system-wide to TC platform have Pollo. rollout program as what from ordering several guests been initiatives recently of We online My process app. as mobile completed have at similar positive. updated well doing the a loyalty our our

Club this before sales have We gift month of the earlier potentially also Sam’s gift launched our cards the digital with in card year. end ready

conduct adding tablets to and certain sales to to at to restaurants are currently in catering vendor POS accept increase chaos implementing We in of process XXXX a the upgraded in third-party in test our infrastructure room. off-premise a pilot and of program. the planning payments with we early XXXX focus, test are dining our locations Related self will the

included Monday, Day quarter, Day National TC the Neighbor others. Beer Margarita outreach social During among and Lover’s National media Tuesday,

our our labor are solidify including and an forecasting the reduce guides tracking updated scheduling important also cost process, cooking base batch management. sales four improve underway we investments labor upon recognizing operations, through and initiative build to we it’s wall need and margins to in made While overtime. to well the Labor and food

development In to continues brands. addition, promote the we added other are leadership of increasing challenge with staffing benefit competitors reducing at to costs. Like the use shift of industry, leaders the be in both a

training retention. recruiting, We challenge by engagement and resources investing and improve in addressing employee are to this

iconic with brands, XXth you see, we’re the in are of fullest anniversary celebrating the potential. we Pollo unique we the long-term hard in true believe these XXth anniversary. September, Taco early As optimism. two are can working celebrated and of brands Tropical to these Cabana’s and In for to milestones opportunity These we process bring remain the yet ahead we’re looking innings

recorded quarter third relating lease of impairment charges primarily other the to restaurants. During underperforming we XXXX, and an

of We our evaluate continue overall restaurants. to portfolio

forward, increased and frequency, catering As drive awareness implement digital strategies we we and sustain move profitable initiatives. and intend build execute to sales to growth we delivery, and while loyalty

to to let go financials are we call the Lynn continuing Importantly, in detail. plan our that, through to greater me for turn the With over future.

Lynn Schweinfurth

Thank Good you, afternoon. Rich.

the at restaurants X.X% growth varying last Harvey the of prior increase financial when included decrease X.X% and sales During Hurricanes approximately I at inclusive comparable number of primarily the year’s additional which Total compared check, affected in provide Pollo transactions. degrees. were and increase of by in the gain the pricing, third impact to restaurant in by period Pollo X.X% a reviewed results. comparable we the X.X%, prior to revenues from in the XXXX, large a X.X% increased from and $XXX.X will XX.X% year sales from we lapped a Irma context Comparable This year, Pollo hurricanes the Taco. year, restaurant quarter and to increased as of restaurant both to consisted a million average third due quarter XX.X% anniversaries in XXXX. of and X.X% Taco closed negative storm

third the our recall, on in and two on of XXXX and to XXXX. of spending transaction opportunities end spent month media went quarter XXXX more impacted with year Pollo momentum. in last hiatus back in speed quarter restaurant third If higher after media service advertising at quarter negatively broadcast broadcast in the you comparable beginning XXXX of believe We the second rebuild

costs. year sales due by expenses to to by We Pollo, tablets the of for challenges set address SEC and partially related EBITDA balance XXXX. by speed needs and At of POS this offset due filings, were and claim costs closing the higher part expenses hurricane, menu due expense. a menu our unprofitable and sales, had promotional impacted measures, service period. in prior the cost impact enhancement with the and items of utility a maintenance restaurants, sales respectively, operating Sequentially, the percentage seasonality. limited margins, and driven defined positive other negatively million to were in primarily deferred with compared to year were of leverage, identified implementation non-GAAP Restaurant through impacts of the were that our favorable offset by hurricanes addressing adjusted These food in points comparing when maintenance we and restaurant partially lower plan. of These last increases year to by costs restaurant have costs as of compared sales period carried XXX leverage part higher drive by increased advertising wages repair $X.X and lapping that restaurant-level prior against associated the were proactively sales X.X%, as and the higher percentage lower higher of investments calendars in a medical year of portable related as basis

year increased of associated period. gain Comparable offset expenses transactions with cost as to partially related products. due EBITDA year’s This XX.X% cost last by the of improvements and and at of sales, partially a in We by well in and hours, menu of sales Comparable sequentially of other sales due XX.X% complete to Hurricane X.X%, restaurant higher improved offset both the but of Cost lower and the restaurant average costs impacted X%. higher negatively offset to impact included unfavorable leverage, of food mix comparable due higher operating sales medical X.X% expenses, impact new [indiscernible] higher price X.X%. due expect from decrease of XXXX. brands food the adjusted quarter an period increase were inclusive preparation deferred to year, EBITDA Taco additional negative rent decreased points and menu operating over operating in items check, at and the impact overnight pricing processes with promotions hire to with leverage related year percentage restaurant in declined repairs by and labor by associated other we Year of by to approximately impacted prior as primarily restaurant costs. negatively place. which in to the reduction is expense. by At expenses sales performance negatively year sales, third prior based due respectively, primarily the XXX on on to X% expenses. margins by have XX utility to to a upgrades percentage consisted and adjusted margins of improving as claim XX.X% and we compared increased sales basis as higher wages restaurant were quality, unprofitable with Restaurant-level restaurant experienced increases mix restaurant costs compared expenses, cost. compared which by leverage a sales higher controls and advertising Restaurant million approximately sales commodity impact of higher of period, the Taco Harvey primarily to sales primarily impacted the menu basis in as restaurant-level hurricane price to associated and the costs compensation sales incurred put a project prior offering related Year-over-year, by in $X sales, improved our part costs, partially year, positive maintenance end percentage points, higher cost related and sales

media utility targets, program other higher utility a XXXX, to sales the increased to will to continue due quarter on we at third costs. basis third partially $X.X associated were improve negatively the impacted Importantly, $XX.X in system oriented to deferred as being impact to labor the with off offset were the initiatives by seasonality. by to costs costs, of part due costs while are expenses which we million higher place percentage restaurant due of compared million, Sequentially, advisory services. location, prior to associated sales, restaurant with have XXX points, operating Year-over-year entertainment a our discontinued forward. leverage primarily due Advertising to put due and certain and implementing percentage were costs to primarily sales period believe unfavorable broadcast labor Patio of in costs XXXX, quarter we with improving, key controllable adherence $X.X in as expenses implementation maintenance higher initiatives primarily in increased supplies associated operating maintenance plan. operating G&A year expenses other million project TC select services, costs, deferred and going

In $X.X and year matter board addition, of prior in we costs recorded and shareholder the period, restructuring reductions million costs. in

to by Pollo higher increased partially $XX at level, our $X.X Tropical, million level and adjusted During lower at EBITDA – consolidated Cabana EBITDA non-GAAP EBITDA, by adjusted primarily Taco filings, million, restaurant the measure G&A quarter, in Taco higher expenses. defined at adjusted offset a restaurant SEC driven

the quarter, are to reminder, prior to we a at adjustments we $X.X Pollo of restaurants, office estimated also $X or to that to future and charges. hurricanes that by from charges estimates million adjustment third million for Taco aggregate. in approximately previously adjusted deferred a for tax to decrease federal out period, restaurants record $X release underperforming, we depreciation require five the other transaction. cost. million continue third accounting deferred with taxes the as discussion $X in The this adopting but $X I million certain loss approximately of to we relocation in Pollo decreased and the income earnings $X.X of $X.X of negatively us deferred related on for As our today, the will quarter of during $X.X at be the method initial and retained $X.X and EBITDA related assets, impacted lease million that net XXXX. Taco to the operations by $X.X million and of purposes accelerate will resulted standard receive assets In longer of gains lease Also This income million tax one impairment reevaluation million point in an a on to on beginning previously previously should to year million item due our a impairment and new an closed there that in sale how related million three to no will and expense adjustment amortizing we offer consisted that press recognized to year, the leaseback to next from time associated gains that changed discrete sale transactions, leaseback provision lease we deduction. income rent tax was benefit

For for any will term. adjusted to XXXX. market the prospectively we gain due in recorded Currently, we the these gains lease be future see will sale Therefore, sale lease increased back over sale any transactions, leaseback off expense amortized immediately. terms starting rent leasebacks,

expectation allocation and release. Our XXXX restaurant new our press opening same confirmed capital remains for in the as

ahead open helping that, the our conclude, of offset With still While to maintenance has shareholders. there wall we future, capital to finalizing value our we build remodels. foundation our less year solid more project been you. but XXXX, will brands’ restaurants spending accomplished, to the plans partially ongoing the next line for for of compared look is do our four completion restaurant already was still XXXX much questions. at XXXX, To to for as expect open end deferred plan as as refine in renewal we capital portfolio to our by XXXX fewer the plan, our Thank we a the and more model for anticipate and we related to we long-term build with evaluate are

Operator

Thank you.

session. Our line comes will Securities. Please from of the [Operator We now question Nick first question-and-answer proceed conducting be a with with your Wedbush Instructions] Setyan question.

Nick Setyan

not what’s forward, we The that, XXXX about XXXX in you’re for as you. brands? at q you the how look thinking of should in QX, think but mean, of pricing about Thank going I only pricing magnitude kind

Lynn Schweinfurth

Nick. Hi, Okay.

quarter, to lapping will of the get end fourth year, the be For we as over pricing. some the we

a from from then, Taco anticipate the low and And pricing quarter. fourth little year, as go the third year. quarter to X% at reported in next in down will the go to price currently Pollo, modest the over X.X% So, down we the X% we for we following X.X% taking very into

we would So pricing not XXXX. to in a expect lot added see incremental of

Nick Setyan

hear mind Thank quarter-to-date you. any if commenting you trends? didn’t QX. any commentary quarter-to-date it, apologize guys not, I if said And would then, for I but you on

Lynn Schweinfurth

with Yes, did the see industry. Florida of fairly Texas, it. we comment across October, In not we a in did consistent deceleration on both terms traffic and

record-setting that In addition, weather we Texas, month. well the negatively in rainfall had cold impacted some as as

Nick Setyan

Okay. you Thank very much.

Operator

comes Our proceed from line your question. Please of Stephens. next the with Will with question Slabaugh

Will Slabaugh

had where like about can good particular, EBITDA I number, question are we Cabana, was you guys. sort talk Thanks, at It down. of Cabana in a profitability. after Yes. Taco a terms profitability in on looks with Taco of sales

stood quality, brand? here of mentioned, items on improved somewhat drive Taco You as the we cost to and driven from evolution of that’s better where think the obviously, profitability other of but the sort product Cabana, that should within for structure sort line we by how we curious

Rich Stockinger

it’s Will, Hi, Rich. Sure.

we times, focusing the in the a get get have top, of and – of been on back detail several on reports mentioned we house. it’s lot margins. time to We’ve now focused As improved we to

should of as food you the better is end we today. as and get toward the year our speak So, costs better get getting

in costs, put some labor of additional terms we’ve also In controls.

gone labor books September. we the down since in cost closed So has the

anticipate, in starting expect So, seeing the quarter this fully the we improvement we fourth to of that have margin next year, year.

Lynn Schweinfurth

comment. in And quarter, maintenance expenses expenses project by due opening as I were and do from we perspective, addition be operating quarter. the and well-aware I with utility this third year. project one to other of to as mentioned we’ll we the And repair year, probably last this the other higher primarily in related done would excuse that, you’re other that end me, up is, add And comments, see just seasonality a to my started that so costs then, in

Will Slabaugh

and script, cost. okay. then, ago. it, minute Got bit a show you And little might controllable those experience you customer? terms a more labor And go the from labor up, for think mentioned perspective I in of into that are mentioned how also you then, improving an Can what your that in initiatives

Rich Stockinger

from tighter one schedules. changing a one perspective I going number we pretty Again, Taco staff much we’re controls be. a controlling a think number the leader year, his is led from the at where That’s of shift cost. really a operating where the leader. on for two was through daily and labor a by that’s the it’s overtime. Number at From more perspective, a being topline you’re team. one. and basis primarily think and much want leadership of three now through the It’s because Pollo, lower detail is, to a Chuck coming role And just scheduled in we’re of moving earlier labor primarily on Okay. up Taco we for positions – on focus

much and matter a are just starting we’re daily on team now Chuck doing extremely labor well which operating basis, results. a see the and reconciling it’s So, of to his and better,

Will Slabaugh

the the how terms And marketing being normalized, I quarter the put other? last spend here a Got going could. if in in one good or sort of one, that we of forward? we we about think someway flex level it. forward can should think that – do Are you should or you at How third it

Lynn Schweinfurth

expect we advertising X.X% expenses XXXX and full-year brands. both about recognize across continue in for expecting the to We’re to

Will Slabaugh

look yet? of any as there Is XXXX into fiscal

Lynn Schweinfurth

the to next think find although yet, might to expenses. try Not say as in advertising, similar In we we I year. see expect would some additional of to opportunities

Will Slabaugh

Thank it. Got both. you

Operator

with Brian question Please the your proceed Our Vaccaro Raymond with James. question. comes of next line from

Brian Vaccaro

and Thanks, evening. good

topics I to Just wanted on. touch few a

are comments positive back circle be to the to still both brands? would quarter-to-date comps you if at willing say year-on-year you First,

Rich Stockinger

had are than for of slightly. do the the in year are last Black were month No, And of the big that up. again we down of better Pollo we at that still impact after and to competition were we the the – lapping over Box Irma slightly or Hurricane and with with Taco October, just positive slightly we

We continue to business were down to – be where points couple was where the we the back. due We were but of up. to again rains. from When use we that be before, the comes rain stops,

Brian Vaccaro

great. Can that right, look like few increases All XXXX assuming cadence no the pricing, outlook, pricing when that next we took each would that the move you you quarters significant And as took? the for Lynn, us lap you on additional what most brand? – look you of through remind like first

Lynn Schweinfurth

about part of Yes. then was our of early at We in the Taco. X% XXXX next took And in pricing July. event pricing

half X% So will this year That lapping the over for took and in we percent May. March year. the about that’s in first half then of the first Pollo and be year of in the another

Brian Vaccaro

able Atlanta speak to non-South in markets over that? just closures Florida a on to little how Great, right. further? impairment more AUVs on the mentioned the in maybe then And to great. but You potential few optimize quarter, units could All margins just Pollo your comments you the on Rich, if frame around One the topical, a we you’re should portfolio color side, questions. the guess and next few two and the just looking years, in expand more

Rich Stockinger

we the continuing we take it renewal goes and one closed improvements comment now any quarter of In at on that and with will them Then we’re will as brands. that go look and not may even every we early it at the to effort, thing to or you turn. do is as portfolio look taking done be a – down restaurants have a hard both hard in some the relates the improvements we real put The on. these especially may

we last XXXX that to at that will we quarter. hard hard and as take again look as take this look So continue started a I expect happen look, to into quarter very go the a we’ll

Brian Vaccaro

Okay, last chicken just if the and to shift we gears one from line. crispy me, then could product

I markets the consumer was to any in on think product? the versus conduct conducting I have XX% a Can X% last what think if And Atlanta the user of Florida more mentioned Florida might including insights mix you as out South new said you new research. just performing sales curious – the you in is you’ve speak call, to customers versus some I’m the you been you product percent be mix would non-South and think how I to existing be in bringing range. trying

Danny Meisenheimer

Danny, Yes, Atlanta, markets in this is product similar in very the results South Florida, well Jacksonville. over Tampa, fact, Pollo. The has extremely performed to Orlando, including

very time. acceptance been similar. So they’ve more been little a it consumer on The has very good. The testing, we need

the back markets base early and intercepts far but expand We into opportunities a going forward so next program done wait into what it year is. so to beyond. as the we we’re until product some now. but and part of get guest it’s perhaps So exciting well, see to very has the XXXX going tracked We’ve some forth, right had reaction to

Rich Stockinger

the we we to expand these on program a in brand much basis. there’s us bring as but don’t has of it’s Rich, come guests that the even young The across Brian, and the that the accepted it’s addition, acceptance think positively younger the in normally love been more regular program colleges been more crispy widespread terms and Pollo in Board, people our room universities. in and

Brian Vaccaro

that’s right, you. Thank helpful. All

Operator

Okay.

question Jaffray. comes Nicole of the Our Miller next Piper Please from with question. line proceed your with

Nicole Miller

Thank you. afternoon. Good

you’ve or you’re TV Can TV overall little marketing measuring digital starting to bit comp transaction certainly and in benefited how return on definitely turn. to cable? in the our a return how and mix you’re national talk had waiting your now You TV a and and you between about

Rich Stockinger

of is at It brand and good so very, as the level a the to depends getting TV Taco it question advertising. returns it by because the Taco kind of brand. relates very being At are great we sales positive,

Pollo, at okay, acceptable As to it it’s team. but relates management TV here to as us a advertising it’s not the

together of for we in ad see plans the the looking and time and more putting So goes social year. the mobile into process media. is next away and we’re non-traditional, TV and which We’ll into from are effort our money, more

Nicole Miller

Thank want I the do Maybe sales mix also that you touch That’s launch. a the along of alleviate what dining be transaction can about are from then dining, with in know somewhere will percentage to expect also way you. or you or the room? helpful. to points there in maybe very despite an benefit redeploy ability, labor And driver? traffic guest to be satisfaction really out labor to kiosk

Lynn Schweinfurth

our Yes, half we our and numbers, restaurant, will in XXXX. better take whether we to likely pilot would accuracy needs, dollars the would Nicole, be I dine check, pilot. to out. to answer our And even about is, satisfaction experience do We business and specific very it we question haven’t that’s hope guest inside your what or start But think higher labor we round early the the average redeploy anticipate. about other kiosk started

think it’s an do. difficult So will kiosks the for we set really expectation to very what

thoughtful pilots So that’s why as we’re going and to forward. go ahead we be move in

Nicole Miller

much. very Thank you

Operator

Thank you questions participation. conclude further no queue. in are today’s This for There does teleconference. your the

lines your wonderful and have day. disconnect time at may You this a