WEBVTT - Firebirds’ Differentiated Experience Lifts Sales 0:00:11.960 --> 0:00:14.640 Welcome to Chopping it Up. I'm your host, Mike Hamlon, 0:00:14.720 --> 0:00:18.560 Senior Restaurant and Food Service analyst at Bloomberg Intelligence. Our 0:00:18.600 --> 0:00:21.279 research and that a bi's five hundred analysts around the 0:00:21.280 --> 0:00:24.920 globe can be found exclusively on the Bloomberg terminal. Today, 0:00:24.920 --> 0:00:28.560 we're joined by Steve Kislow, the CEO of Firebirds Wood 0:00:28.640 --> 0:00:32.920 Fired Grill. Thanks for joining me, Steve, my pleasure. Thanks 0:00:32.960 --> 0:00:36.680 for having me so first creating Nashville and Vegas for 0:00:36.720 --> 0:00:39.920 our FDC. We've had similar travel schedules, man. 0:00:40.280 --> 0:00:42.800 Indeed, indeed, it's good, always good running into. 0:00:42.640 --> 0:00:46.480 You, for sure. Man. Same in my research. I saw 0:00:46.520 --> 0:00:51.360 you graduated from Villanova. I saw I saw the Wallcatcher 0:00:51.440 --> 0:00:53.720 plus twelve hundred to win the Big East this year. 0:00:53.760 --> 0:00:56.320 You probably never saw odds that low when Jay Wright 0:00:56.400 --> 0:00:57.000 was at the Helm. 0:00:57.080 --> 0:01:00.280 Huh, No, it's been it's been a rough, rough couple 0:01:00.320 --> 0:01:02.120 of years. I actually noticed on your bio that you 0:01:02.160 --> 0:01:05.399 were Georgetown about I'm a little bit older than you, 0:01:05.440 --> 0:01:07.600 but it looks like we were there around the same time, 0:01:07.680 --> 0:01:11.520 so definitely definitely a rivalry back then. We really haven't 0:01:12.360 --> 0:01:14.399 haven't been quite as relevant in the last couple of years, 0:01:14.440 --> 0:01:14.840 for sure. 0:01:15.880 --> 0:01:19.360 Yeah, Georgetown's like plus ten thousand. I think when the 0:01:19.400 --> 0:01:23.000 big East the Cooley is off to a rough start. 0:01:23.040 --> 0:01:26.600 But yeah, I think it was my my freshman year 0:01:26.840 --> 0:01:32.240 was that big eia scheme between Ai and ray Allen. Yep, 0:01:34.680 --> 0:01:38.120 you know that was that was pretty wild. That was like, 0:01:39.080 --> 0:01:42.160 you know, there hasn't been many good Georgetown teams since then. 0:01:43.120 --> 0:01:45.800 I was a huge, huge college basketball fan, especially for 0:01:45.840 --> 0:01:47.760 the last you know, ten or fifteen years. There was 0:01:47.800 --> 0:01:50.480 a lot to celebrate, but you get spoiled when you 0:01:50.520 --> 0:01:51.520 have a decade that good. 0:01:52.200 --> 0:01:55.120 Yeah, man showed how important coaching is. All right, man, 0:01:55.160 --> 0:01:57.880 let's get into it. Almost twenty two years of Firebirds. 0:01:57.880 --> 0:02:01.680 You must love that place. Tell me about your experience 0:02:01.720 --> 0:02:04.120 through the years and how the brand is evolved. 0:02:04.360 --> 0:02:10.160 Yeah, well, definitely a lot to be proud of. Careers 0:02:10.200 --> 0:02:14.680 started thirty five years ago at you know McDonald's actually uh, 0:02:14.760 --> 0:02:17.760 you know, fat fast food, and fell fell in love 0:02:17.760 --> 0:02:21.680 with the restaurant business then. And really what attracted me 0:02:21.760 --> 0:02:24.960 to Firebirds is pretty similar to what attracted me to 0:02:24.960 --> 0:02:27.800 to McDonald's years ago. Just the ability to make a 0:02:27.800 --> 0:02:30.600 difference in people's lives, whether it be team members or 0:02:30.919 --> 0:02:33.400 or consumers. You know, one shift at a time, one 0:02:33.440 --> 0:02:35.240 meal at a time. It's just a it's a it's 0:02:35.280 --> 0:02:39.399 a really fun business that has has treated me well 0:02:39.440 --> 0:02:44.400 and certainly have enjoyed some success. You know, Firebirds is 0:02:44.440 --> 0:02:47.160 a really you know, a lot of tenure on the team. 0:02:47.200 --> 0:02:49.919 I mean there, I'm twenty two years and believe it 0:02:50.040 --> 0:02:52.440 or not, there's a there's quite a few a lot 0:02:52.560 --> 0:02:55.320 like me that we've worked we've worked together for a 0:02:55.320 --> 0:02:58.800 long time and you know, kind of founder founder selected 0:02:58.960 --> 0:03:02.680 and you know, been around understand the culture that that 0:03:02.760 --> 0:03:05.160 our founders you know, had in mind when they created 0:03:05.160 --> 0:03:08.799 the when they created the brand. So it's been it's 0:03:08.800 --> 0:03:10.679 been a heck of a journey for sure. You know, 0:03:10.880 --> 0:03:14.160 I think maybe one of the most interesting parts of 0:03:14.240 --> 0:03:17.200 it was twenty two years ago, as you know, there 0:03:17.280 --> 0:03:21.280 wasn't a lot of There wasn't a lot of polished casual. 0:03:21.280 --> 0:03:23.519 It was kind of an emerging category. There's a lot 0:03:23.520 --> 0:03:25.440 of a lot of folks that have joined the party now. 0:03:25.480 --> 0:03:28.960 But I think that's probably what was the most interesting 0:03:29.000 --> 0:03:31.440 part to me is I had spent time obviously in 0:03:31.480 --> 0:03:34.360 fast food and fast casual and in casual dining, and 0:03:34.400 --> 0:03:36.960 then you know, I had had some years with Mortons 0:03:36.960 --> 0:03:40.240 to Chicago Steakhouse too. So I think that that blend 0:03:40.240 --> 0:03:43.440 of casual dining and fine dining, and then when I 0:03:43.440 --> 0:03:46.240 had an opportunity to you know, put my thumbprint on 0:03:46.320 --> 0:03:48.920 something that was kind of in the middle and bring 0:03:48.960 --> 0:03:51.320 some of those nuances of fine dining into the more 0:03:51.600 --> 0:03:55.520 approachable and casual format of casual dining, was just kind 0:03:55.520 --> 0:03:57.800 of a fun, a fun and perfect blend for me. 0:03:58.960 --> 0:04:00.640 Very cool. Can you talk a little bit about the 0:04:00.720 --> 0:04:03.280 menu for the listeners that aren't familiar. 0:04:03.240 --> 0:04:07.200 Sure, Well, as you said in the name Firebirds wood 0:04:07.320 --> 0:04:11.040 fired grill, you know, there are no on off switches 0:04:11.840 --> 0:04:16.000 on our grills. We we source all of our woods locally. 0:04:17.279 --> 0:04:19.880 You know, I think the journey really starts when you're 0:04:19.920 --> 0:04:21.280 in the parking lot and you get out of your 0:04:21.279 --> 0:04:23.880 car and you can just smell that, you know, wood 0:04:23.920 --> 0:04:27.960 burning kind of brings you back to you know, campfires 0:04:28.040 --> 0:04:30.599 and the way that cavemen you know, cooked in that 0:04:30.680 --> 0:04:33.960 primitive format, you know, thousands of years ago, and there's 0:04:33.960 --> 0:04:35.920 something really cool about that. You know, we're loading that 0:04:35.960 --> 0:04:38.400 live wood into that grill all day long and it's 0:04:38.480 --> 0:04:42.560 it really imparts, you know, pretty unique, pretty special flavor 0:04:42.560 --> 0:04:45.560 bold flavor profile into the food and all those proteins, 0:04:45.640 --> 0:04:47.119 especially that we're cooking on the grill. 0:04:47.880 --> 0:04:48.200 Uh. 0:04:48.279 --> 0:04:49.840 And then you know, over the years, as our as 0:04:49.839 --> 0:04:52.480 our bar program has continued to evolve, it's not just 0:04:52.560 --> 0:04:55.680 the food that's that's getting nuances of you know, of 0:04:55.800 --> 0:04:59.120 char and fire, but uh, it's the bar program as well. 0:04:59.800 --> 0:05:02.960 You know, a really good blend of lunch versus dinner. 0:05:03.000 --> 0:05:06.919 We got about thirty percent of our mixes lunchtime, so 0:05:07.920 --> 0:05:12.280 you know, plenty of sandwiches, oversized salads and proteins on 0:05:12.320 --> 0:05:14.640 the lunch menu, and on the dinner menu you've got 0:05:14.640 --> 0:05:18.279 a great selection of steaks and seafoods and pastas. I 0:05:18.279 --> 0:05:20.200 think the beauty of the brand is that there's really 0:05:20.200 --> 0:05:23.240 no veto vote. I mean, there's a little something for 0:05:23.279 --> 0:05:27.320 everybody when you're coming into to a Firebirds. 0:05:27.400 --> 0:05:32.040 Very cool. How much of the business's alcohol and off premise. 0:05:32.600 --> 0:05:37.400 You've got about eighteen percent of the business is coming 0:05:37.440 --> 0:05:40.000 from the bar. You know that that's not as a 0:05:40.000 --> 0:05:41.920 function of total net sales, so that includes all the 0:05:41.960 --> 0:05:46.440 off premise business we do as well. Off premise, we're 0:05:46.520 --> 0:05:49.400 just north of fifteen percent, which is a combination of 0:05:49.440 --> 0:05:53.560 traditional to go delivery as well as you know, kind 0:05:53.600 --> 0:05:57.400 of a new catering channel that's still really in its infancy. 0:05:58.760 --> 0:06:00.800 There's been a lot of talk about how the younger 0:06:00.839 --> 0:06:03.560 generations are drinking less and just people in general are 0:06:03.600 --> 0:06:06.599 cutting back on alcohol. Have you seen that. Where's the 0:06:06.600 --> 0:06:09.200 alcohol mix versus you know, twenty nineteen. 0:06:09.800 --> 0:06:13.240 Yeah, I think the it's really I think it's less 0:06:13.240 --> 0:06:16.560 about them drinking less and more about kind of how 0:06:16.600 --> 0:06:19.920 they're drinking and what they're drinking. You know, if you 0:06:20.000 --> 0:06:23.240 go back ten years ago, wine was king, you know, 0:06:23.400 --> 0:06:25.839 and you know, the craft beer craze was you know, 0:06:25.960 --> 0:06:28.520 was still an important part of the business. And now 0:06:28.640 --> 0:06:32.600 we're seeing, you know, some erosion on the wine and 0:06:32.680 --> 0:06:36.840 beer side, while the liquor side is really growing right 0:06:36.880 --> 0:06:39.839 and and I think the different categories it was, you know, 0:06:39.920 --> 0:06:43.080 it was it was bourbon, you know, somewhere in the five, six, 0:06:43.160 --> 0:06:47.880 seven years ago. Now the real growing channel is is tequila, 0:06:48.440 --> 0:06:51.360 mezcal and all the agave spirits. I think it's gonna 0:06:51.360 --> 0:06:53.800 be interesting to see on the on the bar side, 0:06:53.920 --> 0:06:56.720 kind of what's that next category. I you know, I 0:06:57.080 --> 0:07:00.400 can hypothesize and say it feels it feels like is 0:07:00.440 --> 0:07:03.040 probably coming next, because there's you know a lot of 0:07:03.080 --> 0:07:04.800 folks out there that are doing some pretty fun and 0:07:04.839 --> 0:07:08.880 exciting things, you know, in uh with with rum spirits. 0:07:08.920 --> 0:07:11.320 Cool. Yeah. I was watching a video yesterday. It was 0:07:11.320 --> 0:07:14.720 about growth, brand growth and tequila category and it was 0:07:14.720 --> 0:07:19.040 interesting how all these like single sourced, additive free tequilas 0:07:19.080 --> 0:07:21.760 were kind of blowing up at the expense of some 0:07:21.800 --> 0:07:23.080 of the cause of egos of the world. 0:07:23.480 --> 0:07:26.600 Yep, it's a it's a big, it's huge growing category 0:07:26.640 --> 0:07:28.600 and there's a lot of conversation you know around the 0:07:28.600 --> 0:07:30.360 additive around the additive side. 0:07:30.640 --> 0:07:32.520 Too, So it's it's exciting. 0:07:32.560 --> 0:07:34.720 I mean, it's it's I think there's I think part 0:07:34.720 --> 0:07:37.760 of what people loved about wine and beer ten years 0:07:37.800 --> 0:07:40.320 ago was that, you know, they all kind of had 0:07:40.360 --> 0:07:43.120 a story to them, and you know, on the alcohol 0:07:43.200 --> 0:07:47.560 side it they didn't quite embrace that yet. And now, 0:07:47.760 --> 0:07:49.560 you know, I don't know whether it's the celebrity piece 0:07:49.640 --> 0:07:51.640 that is kind of, you know, really come into the 0:07:51.640 --> 0:07:53.400 picture that have helped the story part of it. But 0:07:53.440 --> 0:07:57.240 I think the different alcohol brands, you know, again, whether 0:07:57.280 --> 0:07:59.920 they be bourbon or tequila or whatever, they all kind 0:07:59.960 --> 0:08:01.600 of to have a story behind them now too, and 0:08:01.600 --> 0:08:03.280 I think people are getting more interested in that. They 0:08:03.320 --> 0:08:05.280 want to they want to know there's a story behind 0:08:05.320 --> 0:08:05.960 what they're drinking. 0:08:06.680 --> 0:08:10.960 Yeah, for sure. How many units do you have now? 0:08:11.000 --> 0:08:14.000 And where is the change strong geographically? And I guess 0:08:14.040 --> 0:08:15.480 who's your core customer? 0:08:15.760 --> 0:08:17.640 Yeah, uh, sixty four. 0:08:17.720 --> 0:08:22.040 We just opened number sixty four this past this past Monday, 0:08:23.440 --> 0:08:27.120 And there's twenty one different states that we operate in. 0:08:28.680 --> 0:08:31.040 Very strong in the southeast, but we're you know, we're 0:08:31.040 --> 0:08:34.200 as far south as as Fort Lauderdale, as far north 0:08:34.360 --> 0:08:38.079 as you know, Ohio and western Pennsylvania, as far west 0:08:38.120 --> 0:08:41.560 as Arizona, so pretty widespread. And we've you know, we've 0:08:41.640 --> 0:08:45.480 we've already you know, have the proven portability with respect 0:08:45.520 --> 0:08:49.600 to the brand across all those different states. But I 0:08:49.600 --> 0:08:52.640 would say are the strongest part of the brand is 0:08:52.640 --> 0:08:56.280 is in the southeast, the Carolinas, Virginia, which is where 0:08:56.320 --> 0:09:00.480 we began back in back in two thousand in in Charlotte, 0:09:00.480 --> 0:09:03.600 North Carolina. As far as our customer goes, you know, 0:09:03.760 --> 0:09:06.040 it's it's everybody out there. I think I think the 0:09:06.080 --> 0:09:09.520 cool part about you know, I alluded to it earlier, uh, 0:09:09.559 --> 0:09:11.480 in being kind of in the middle of that fine 0:09:11.559 --> 0:09:14.720 dining and casual dining is that you know, folks from 0:09:14.920 --> 0:09:17.360 you know, the left side of the chart, are you know, 0:09:17.480 --> 0:09:20.840 are trading up for a little bit more money for 0:09:20.960 --> 0:09:24.760 a you know, a sexier facility, you know, elevated food. 0:09:25.679 --> 0:09:27.120 I think we focus a little bit more on the 0:09:27.160 --> 0:09:30.160 mechanics of service as well as the feeling of hospitality 0:09:31.400 --> 0:09:33.720 and you know ingredients that we use again that would 0:09:33.720 --> 0:09:39.680 fired grill. Our bar program, you know, is all handcrafted cocktails. 0:09:40.160 --> 0:09:44.080 So I think we definitely appeal to a you know, 0:09:44.160 --> 0:09:46.240 to an audience that is willing to spend just a 0:09:46.360 --> 0:09:49.120 little bit more, uh, for an elevated experience. And then 0:09:49.160 --> 0:09:50.440 if you think all the way to the right side 0:09:50.440 --> 0:09:53.439 of the graph with with the fine dining folks, they 0:09:53.480 --> 0:09:55.520 realize they're going to come to Firebirds And it's an 0:09:55.520 --> 0:10:00.280 incredible value because for a fraction of you know, that 0:10:00.600 --> 0:10:03.320 one hundred dollars check average, you can get you know, 0:10:03.360 --> 0:10:05.880 a very similar experience with some of the same nuances, 0:10:05.920 --> 0:10:10.040 but in maybe a more you know, approachable format. 0:10:10.920 --> 0:10:13.600 Great. How big are your units and how much they 0:10:13.600 --> 0:10:14.240 cost to build? 0:10:14.840 --> 0:10:19.319 Yeah, so our smallest units are somewhere between fifty one 0:10:19.360 --> 0:10:21.679 hundred and fifty three hundred feet, which is which is 0:10:21.720 --> 0:10:24.600 a little bit more of what we build today. And 0:10:24.640 --> 0:10:26.760 then we've gone as large over the course of the 0:10:26.840 --> 0:10:29.840 last two decades, as large as like eighty three hundred feet, 0:10:29.880 --> 0:10:31.320 but we don't, you know, we won't build a box 0:10:31.360 --> 0:10:35.000 that big now. Really, we've got two prototypes. There's a 0:10:35.040 --> 0:10:38.120 fifty three hundred and a sixty three hundred. The biggest 0:10:38.160 --> 0:10:41.319 difference is a private dining room. If we're you know, 0:10:41.360 --> 0:10:43.600 if we're in a market that's real close to healthcare, 0:10:43.800 --> 0:10:46.040 we think that there's you know, enough class a office 0:10:46.640 --> 0:10:49.439 to do a private dining room. We do that, but 0:10:49.559 --> 0:10:51.800 most of what we're building now is in that fifty 0:10:51.840 --> 0:10:56.280 three hundred about a seven hundred square foot patio. We 0:10:56.320 --> 0:10:59.880 look for somewhere between thirty and thirty three tables and 0:11:00.160 --> 0:11:03.000 dining room, and then you know, the bars and I 0:11:03.120 --> 0:11:05.400 size too. We've got you know, about eight tables typically 0:11:05.480 --> 0:11:08.240 in the bar, you know, plus the actual bar seating. 0:11:08.840 --> 0:11:12.760 And we've over the years evolved the patio from a 0:11:12.800 --> 0:11:17.160 true outdoor space with no lid to a completely enclosed 0:11:17.720 --> 0:11:18.600 space where. 0:11:18.360 --> 0:11:19.600 We can use it all year long. 0:11:19.760 --> 0:11:21.760 And then really through COVID, we learned that you know, 0:11:21.840 --> 0:11:25.480 people really you know, they they enjoyed, wanted those outdoor spaces, 0:11:25.520 --> 0:11:27.880 and that's really hasn't gone away. So we really haven't 0:11:27.880 --> 0:11:30.640 gone back to those fully enclosed patios, but it's sort 0:11:30.640 --> 0:11:32.880 of an evolution between the two. Now we've got you know, 0:11:33.040 --> 0:11:35.920 hard lids, we're spent a little bit money more money 0:11:36.000 --> 0:11:38.920 to soften up the patios with some really great landscaping 0:11:39.000 --> 0:11:41.960 around it. So we've we're not quite where we were 0:11:41.960 --> 0:11:43.959 twenty years ago, but you know, we don't have the 0:11:44.000 --> 0:11:46.839 completely enclosed space either. We've just created a really nice 0:11:46.920 --> 0:11:50.760 outdoor space and really from a cost to build standpoint, 0:11:50.800 --> 0:11:53.000 it just kind of depends on, you know, whether we're 0:11:53.000 --> 0:11:55.320 on an end cap or you know, or a ground up. 0:11:55.360 --> 0:11:59.160 But the beauty of the brand really not flying under 0:11:59.160 --> 0:12:02.320 the radar anymore, is that developers really want us in 0:12:02.360 --> 0:12:06.200 their centers, you know, versus the usual suspects and casual dining. 0:12:06.760 --> 0:12:09.480 You know, people are are looking for firebirds in the center. 0:12:09.559 --> 0:12:11.280 So you know, we're we're taking advantage of some of 0:12:11.280 --> 0:12:14.360 that additional t I dollars and you know, we're we're 0:12:14.400 --> 0:12:16.600 anywhere from from three to four and a half million 0:12:17.360 --> 0:12:19.720 you know, to build the to build the boxes. 0:12:20.679 --> 0:12:23.040 Is there any other uni economic data you'd like to share, 0:12:23.080 --> 0:12:24.880 au VS margins stuff like that. 0:12:25.920 --> 0:12:33.320 Au V's are approaching six million, Our store level EBITDA 0:12:33.520 --> 0:12:38.360 is north of north of twenty percent. Performance right now 0:12:38.480 --> 0:12:41.760 is great. You know, I'm sure the rest of the UH, 0:12:41.920 --> 0:12:44.120 the rest of the industry experienced a lot of what 0:12:44.160 --> 0:12:46.840 we did, at least in the very beginning of the year, 0:12:46.920 --> 0:12:50.400 with some with some really tough year over year weather 0:12:50.440 --> 0:12:53.839 delta stuff. But really the first half of the year 0:12:53.880 --> 0:12:56.680 we've spent you know, cawing back from that tough first 0:12:56.760 --> 0:12:59.320 five or six weeks. UH second half of the year 0:12:59.360 --> 0:13:02.880 have had some really good momentum. You know, we're positive 0:13:02.920 --> 0:13:06.080 same source sales, you know, load to middle single digits, 0:13:07.360 --> 0:13:10.720 and you're to date where we're positive UH same store 0:13:10.720 --> 0:13:11.440 sales as well. 0:13:11.520 --> 0:13:13.560 So it feels really good where we are right now. 0:13:13.559 --> 0:13:18.600 Black Box Comps tells us we're outperforming UH the casual 0:13:18.840 --> 0:13:21.920 dining set as well as polished casual, So it feels 0:13:21.960 --> 0:13:23.439 really good where we are where we are today. I 0:13:23.480 --> 0:13:25.360 think I think a lot of that has to do 0:13:25.480 --> 0:13:27.400 with I mean, everywhere you read and everybody you talk to, 0:13:27.520 --> 0:13:29.880 and frankly, every everything everyone's doing out there is all 0:13:29.920 --> 0:13:36.640 about value. We believe that you know, value is values 0:13:36.679 --> 0:13:39.520 an equation, right, I mean, it's it's it certainly is 0:13:39.559 --> 0:13:41.959 related to price, but it has everything to do with 0:13:42.040 --> 0:13:45.960 what you offer all year long, not just gimmicky you know, 0:13:46.080 --> 0:13:49.120 promotional discounts, and we try to do that all year long. 0:13:49.280 --> 0:13:50.959 I don't I don't believe that there's anything that we're 0:13:51.000 --> 0:13:55.280 doing differently today than we were doing two years ago. 0:13:55.800 --> 0:13:58.160 We've got some evergreen stuff on the menu that really 0:13:58.200 --> 0:14:01.120 screams value, and we may message more about that, but 0:14:01.200 --> 0:14:05.200 it's not you know, there's not thirteen ninety five you know, 0:14:05.240 --> 0:14:07.760 three course menus or anything like that. It's still you know, 0:14:08.320 --> 0:14:10.600 we don't want to jeopardize the integrity of the brand. 0:14:10.960 --> 0:14:12.960 We think we think the value speaks for itself. 0:14:13.480 --> 0:14:15.640 Yeah, and there's no need to. I mean, you're performing 0:14:15.679 --> 0:14:17.640 by a pretty wide margin. Man. It sharp feels like 0:14:17.720 --> 0:14:21.320 and looks like, based on the black Box Intelligence data, 0:14:21.320 --> 0:14:23.840 that we were in a restaurant recession this year, right, 0:14:23.880 --> 0:14:26.560 So mid to low single a load to mid single 0:14:26.560 --> 0:14:29.240 digits into our sales competent is very impressive in this. 0:14:29.920 --> 0:14:32.320 Yeah, and it's consistent, it's consistent with what we did 0:14:32.360 --> 0:14:35.520 back in eight oh nine. I mean, I think in 0:14:35.600 --> 0:14:40.000 those tougher climates, you know, again, when you're positioned between 0:14:40.240 --> 0:14:42.880 casual and fine dining, I think there's a certain amount 0:14:42.920 --> 0:14:46.840 of insulation there where you may have some guests that 0:14:47.000 --> 0:14:50.480 reduce their cadence during those times and kind of maybe 0:14:50.520 --> 0:14:53.120 move to the left into the more casual price point. 0:14:53.200 --> 0:14:55.960 But while that's happening, you have the folks that are 0:14:56.000 --> 0:14:58.960 going find dining more often that are reducing the cadence there, 0:14:58.960 --> 0:15:01.120 and they're coming to us. Whoever we may lose to 0:15:01.120 --> 0:15:03.000 the left, we're gaining from the right, And I think 0:15:03.040 --> 0:15:05.600 that's what's that's helped us in all of these different 0:15:06.160 --> 0:15:08.400 you know cycles that we're that we're that we've been in, 0:15:08.440 --> 0:15:11.320 and you know we'll be in the future. Let's face it, great, 0:15:11.960 --> 0:15:14.880 are you having any issues finding good locations now? And 0:15:15.200 --> 0:15:17.400 how many restaurants do you expect to open in twenty 0:15:17.440 --> 0:15:20.680 twenty five. The short answer to the first part of 0:15:20.680 --> 0:15:24.000 the question is is is no. There's a lot of 0:15:24.040 --> 0:15:27.160 really good real estate out there right now. We are 0:15:27.320 --> 0:15:32.960 blessed with a brand that developers are excited about. So 0:15:33.120 --> 0:15:37.320 while they're you know, it's competitive, you know, it's we're 0:15:37.640 --> 0:15:40.160 We've got a really good product that the developers want, 0:15:40.280 --> 0:15:42.160 you know, want us in, So, you know, I think 0:15:42.280 --> 0:15:45.920 that's that's that's a good place to be. We're going 0:15:45.960 --> 0:15:49.120 to open six to eight restaurants in twenty twenty five. 0:15:49.240 --> 0:15:51.320 We are we're fully baked at this point. All of 0:15:51.320 --> 0:15:54.640 the leases are signed and we're under development on all 0:15:54.640 --> 0:15:56.920 of those. And I would say it's you know, it's 0:15:56.920 --> 0:15:59.240 gonna be another eight and twenty twenty six as well. 0:15:59.520 --> 0:16:02.800 Twenty twenty six is about halfway done and we're already 0:16:02.800 --> 0:16:05.120 working on some twenty twenty seven sites. I think to 0:16:05.200 --> 0:16:08.560 get the best real estate, you've got to be two 0:16:08.640 --> 0:16:11.040 years out. I mean, I think that's that's the number. 0:16:12.040 --> 0:16:16.080 Construction timelines have gotten better than they were, you know, 0:16:16.160 --> 0:16:18.280 in the last two or three years, but they're still 0:16:18.320 --> 0:16:20.440 a little longer than they, you know, than they were 0:16:20.480 --> 0:16:22.880 five years ago. So I think if you're if you're 0:16:22.920 --> 0:16:25.440 out for a plus real estate, you've got to be 0:16:25.640 --> 0:16:27.120 you know, you've got to be two years out, which 0:16:27.160 --> 0:16:27.880 is where we sit today. 0:16:27.920 --> 0:16:28.680 It feels pretty good. 0:16:29.920 --> 0:16:32.160 And what percentage of new store gms are brought in 0:16:32.200 --> 0:16:34.560 from other five Birds restaurants. 0:16:34.280 --> 0:16:40.040 High percentage either the GM or the chef. We always 0:16:40.240 --> 0:16:42.480 try to have least one of those two, if not 0:16:42.680 --> 0:16:46.720 both be from another location, and if for some reason 0:16:46.720 --> 0:16:50.120 it's not possible, we will. You know, we'll hire a 0:16:50.240 --> 0:16:53.000 year out before a restaurant's opening to make sure that 0:16:53.040 --> 0:16:54.880 we can put that seasoning on them and they can 0:16:54.880 --> 0:16:58.120 spend that time in grade in a location, running a location. 0:16:58.440 --> 0:17:00.720 You know, even if it means absorbing some of the 0:17:00.760 --> 0:17:04.119 costs that the travel has, it's it's worth it to 0:17:04.119 --> 0:17:05.720 make sure that we have the right people. And that's 0:17:05.800 --> 0:17:07.720 that's that's what it's all about. You surround yourself with 0:17:07.760 --> 0:17:09.160 great people, great things are going to happen. 0:17:09.800 --> 0:17:13.120 Yeah, smart, Are you willing to share your employee turnover metrics? 0:17:13.520 --> 0:17:14.240 Yeah, for sure. 0:17:14.320 --> 0:17:17.840 We are from a from a management standpoint, you know, 0:17:17.920 --> 0:17:20.840 we've always been kind of in that industry leading twenty 0:17:20.840 --> 0:17:23.879 percent number, and that's that's our target. 0:17:23.920 --> 0:17:24.320 Every year. 0:17:24.359 --> 0:17:27.280 We try to stay below twenty percent. During during the 0:17:27.280 --> 0:17:30.280 tougher years of COVID, it got a little higher into 0:17:30.359 --> 0:17:32.960 kind of the mid mid to high twenties, and right 0:17:33.000 --> 0:17:35.639 after that it's right back down into the low twenties, 0:17:35.680 --> 0:17:39.080 high teens, and then from an hourly perspective, you know, 0:17:39.320 --> 0:17:42.040 we kind of hang somewhere between the ninety and one 0:17:42.080 --> 0:17:44.919 oh two, you know, for for hourly. 0:17:46.280 --> 0:17:47.520 Yeah, those are numbers we're proud of. 0:17:47.560 --> 0:17:49.320 We spent a lot of resources, a lot of time 0:17:50.080 --> 0:17:53.040 on what I like to refer to as the holy 0:17:53.080 --> 0:17:56.960 trinity of success in this business, which is selection, training, 0:17:56.960 --> 0:17:59.280 and environment. And we spend a lot of time providing 0:17:59.320 --> 0:18:02.680 the resources to people to prepare them for the position. 0:18:03.520 --> 0:18:06.240 And then you know, we try to motivate and get 0:18:06.240 --> 0:18:09.480 people excited about working in a in a safe, high energy, 0:18:09.880 --> 0:18:11.080 high energy type environment. 0:18:12.119 --> 0:18:15.679 Yeah, I could stop. Those are great numbers. Do you 0:18:15.680 --> 0:18:18.120 have any Are you willing to share any of your 0:18:18.440 --> 0:18:20.800 plans to help drive scenes start sales growth in twenty 0:18:20.840 --> 0:18:22.640 five you know. 0:18:23.320 --> 0:18:26.840 We we're going to continue to focus on innovating that 0:18:27.080 --> 0:18:30.280 the guest experience, right. I think that what I what 0:18:30.320 --> 0:18:32.560 I would want to share is just back to the 0:18:32.600 --> 0:18:35.679 whole idea of I think we spoke a little bit 0:18:35.680 --> 0:18:38.800 about it when we were together either at Create or 0:18:38.960 --> 0:18:42.480 or r F d C. But the idea behind data 0:18:43.480 --> 0:18:49.040 and using data maybe more as information. I think over 0:18:49.080 --> 0:18:52.560 the course of the last quarter of a century, now 0:18:52.560 --> 0:18:57.520 that we've been open, we've collected terabytes and terabytes of data, 0:18:58.240 --> 0:18:59.960 and I think we thought we were on, you know, 0:19:00.320 --> 0:19:02.920 the cutting edge, but I don't think we really knew 0:19:02.920 --> 0:19:04.960 what to do with the data at the time. There's 0:19:05.000 --> 0:19:07.359 a lot of different silos out there that we're collecting it. 0:19:08.720 --> 0:19:10.919 We are spending a lot of time and resources now. 0:19:10.920 --> 0:19:12.440 I wish we would have started a little bit sooner, 0:19:12.480 --> 0:19:14.280 but I love the direction that we're in and what 0:19:14.320 --> 0:19:17.520 we're doing today. We're spending a lot of time and 0:19:17.600 --> 0:19:22.840 resources now aggregating that data and putting it in a 0:19:23.040 --> 0:19:26.240 more accessible format to help us make great decisions for 0:19:26.280 --> 0:19:31.800 the business. An example of that is marketing automation. You know, 0:19:31.880 --> 0:19:35.080 we're gonna know we already know, you know from a 0:19:35.280 --> 0:19:39.840 check detail standpoint, you know what Mike Halen loves based 0:19:39.880 --> 0:19:42.240 on what you come into the restaurant in order, you know, 0:19:42.359 --> 0:19:46.159 we build a profile on individual guests because you know 0:19:46.280 --> 0:19:49.200 you're you're a busy guy, and whether it's how we 0:19:50.800 --> 0:19:52.800 how we create the experience for you when you come 0:19:52.840 --> 0:19:55.040 in the restaurant, or how we market to you. There's 0:19:55.080 --> 0:19:57.639 no reason for us to you know, market to you 0:19:57.840 --> 0:20:00.119 with pictures of stakes and different things that we're doing 0:20:00.160 --> 0:20:03.879 in the restaurants. With Ribbi's if you're a vegetarian. So 0:20:04.280 --> 0:20:07.760 I think really digging into that and being a lot 0:20:07.840 --> 0:20:10.879 more efficient in how we market to people take them on, 0:20:11.359 --> 0:20:16.200 you know, a far more personalized journey, you know, versus 0:20:16.520 --> 0:20:18.600 just you know, same thing for everybody. 0:20:18.720 --> 0:20:19.960 You know, we're going to know that. 0:20:19.920 --> 0:20:23.399 You normally come in eight times a year, but you 0:20:23.520 --> 0:20:25.440 haven't been in, let's say, in ninety days, and we're 0:20:25.440 --> 0:20:27.120 going to be able to reach out and just remind 0:20:27.119 --> 0:20:28.760 you that we exist. It doesn't mean that you're going 0:20:28.840 --> 0:20:31.040 to get a you know, an email for a seventeen 0:20:31.080 --> 0:20:33.280 dollars stake. It means we're just going to say, hey, 0:20:33.640 --> 0:20:35.760 you know, remember we were part of your starting rotation 0:20:35.880 --> 0:20:37.560 and for some reason we fell off, so we want 0:20:37.560 --> 0:20:39.800