Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Kura Sushi USA, Incorporated fiscal fourth quarter 2020 earnings conference call. At this time, all participants have been placed in a listen-only mode, and the lines will be open for your questions following the presentation. Please note that this conference is being recorded today, November 16th, 2020. On the call today, we have Hajime Jimmy Uba, President and Chief Executive Officer, Koji Shinohara, Chief Financial Officer, and Benjamin Porten, Investor Relations Director. Now, I would like to turn the conference over to Mr. Porten.
Thank you, operator. Good afternoon, everyone, and thank you all for joining. By now, everyone should have access to our fiscal fourth quarter 2020 earnings release. It can be found at www.kurasushi.com in the investor relations section. A copy of the earnings release has also been included in an 8-K we submitted to the SEC. Before we begin our formal remarks, I need to remind everyone that part of our discussions today will include forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance, and therefore you should not put undue reliance on them. These statements are also subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect.
We refer all of you to our recent SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition. Also, during today's call, we will discuss certain non-GAAP measures which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation, nor as a substitute for results prepared in accordance with GAAP, and the reconciliations to comparable GAAP measures are available in our earnings release. With that out of the way, I'd like to turn the call over to Jimmy.
Thank you, Ben, and thank you everyone for joining us today. I hope everyone is staying safe and healthy. Like our last quarter's earnings call, our discussion today will mainly focus on the business update and our pandemic strategies. However, if you do have specific questions about our fourth quarter financial results, we will be happy to answer them during Q&A. As many of you likely remember, as official guidelines in mid-March switched to mandatory shutdown of indoor in-restaurant dining, we made the difficult decision to close all of our restaurants system-wide. From the start of the pandemic, our primary concerns have been the safety of our guests, the ongoing health and welfare of our team, our liquidity, and our ability to quickly and efficiently resume operations when the time was right.
As conditions allowed, we began the process of reopening our stores in late May, and by the end of our fiscal fourth quarter, we were able to open 23 out of 25 restaurants. Keep in mind that our restaurants have been hampered by various COVID capacity restrictions, which is reflected in this quarter's sales. You might remember that in California, which contains roughly half of our restaurant base, Governor Newsom issued a restriction on all indoor dining beginning on July 1st. Because this restriction was in effect throughout the fourth quarter, our California stores operated largely on to-go and outdoor seating service basis until restrictions were relaxed in certain counties in September.
Outside of California, most of our restaurants were operating at 50% seating capacity during the fourth quarter, and we have been very excited to see solid demand from our guests for our differentiated dining experience as we reopened our dining rooms. In Texas, we saw significant improvement in September with the return of the full Kura Experience and the seating capacity increased to 75%. With our Q4 comps in Texas were -60%, our comps for September were -38%, and our October comps improved to -24%, which we think is indicative of the recovery we can expect in regions with reopened indoor dining rooms and the full Kura Experience.
We saw another example of this with our recent new restaurant opening in Fort Lee, New Jersey, subsequent to the end of the quarter, where sales levels have reached 50%-60% of our pre-pandemic system AUV, in spite of New Jersey's 25% seating capacity limitation. As I noted, a significant part of our consumer appeal is our ability to provide guests with a multi-sensory Kura Experience in our dining rooms through the use of our evolving conveyor belt, our on-demand ordering screen and Express Belt, our Mr. Fresh dome, and our Bikkura Pon reward machine. As you can imagine, this experience is almost impossible to replicate in full due to current restrictions.
Our most significant headwinds have been in California due to a system-wide ban on conveyor belts, which has resulted in the loss of a signature element of the Kura Experience, as well as the front of house labor efficiencies that our conveyor belts provide. To mitigate the loss of in-store sales, starting in late July and early August, we implemented several initiatives to supplement our to-go service, including limited outdoor seating in many of our California restaurants, and the system-wide rollout of online ordering and delivery options through Grubhub. As a result of our focus on off-premises dining, including Grubhub implementation, we were able to grow our off-premises mix to 17% for Q4. This compared to our historical off-premises mix of around 1% of sales. Additionally, by the end of the fourth quarter, we had 10 restaurants in California with outdoor dining spaces.
While we were able to recoup some of the lost sales, as you can imagine, we are eager to bring back the full Kura Experience to our guests in California as soon as we can. As the implementation of efforts such as outdoor dining and our Grubhub listings were completed in August, we began to see the full month benefit of these new initiatives beginning in September. Our September and October results were also buoyed by the relaxation of dining room restrictions in certain California counties. To provide a comparison between our past quarter and our current quarter, we began our FY 2020 fourth quarter with only three open dining rooms. Today, we have 18 restaurants that offer in-store dining.
While our Q4 comps were - 73%, we've seen consistent comp improvement as we've entered our new fiscal year, with September comps of - 53% and October comps of - 44%. Notably, we've achieved close to 30% sequential system-wide revenue growth in September in spite of August historically being our strongest month. These strong results continued into October, which saw further system-wide revenue growth of 20% over September. We are continuing to see monthly improvement in our off-premise sales business as well. While our Q4 Grubhub sales were only $35,000, we were able to grow our Grubhub sales to $84,000 in September, bringing our total off-premises sales to $350,000 for that month. In October, our off-premises sales continued to grow with off-premises sales of $405,000, $123,000 of which were from Grubhub.
These early results have been very encouraging. We are exploring working with other channels to expand our digital footprint and mitigate margin pressure from third-party fees. We are currently running an in-store pilot for online ordering through Square, and pending results, we plan to expand it system-wide. Through Square, we will be able to offer online ordering through our homepage, offer mobile ordering through our waiting app, and eventually provide contactless service and table-side payment for our dining room guests. Our full Kura Experience has been one of the drivers of our industry-leading pre-COVID unit economics, and operating our restaurant without this has been a challenge. However, we feel good about the demand for Kura Sushi when our dining room is available, and we continue to look for ways to deliver a great guest experience in spite of these limitations.
In addition, due to the steps we've taken at the onset of COVID, including retention of store managers and critical kitchen staff, we believe we are well-positioned to ramp up our operations quickly and efficiently when indoor dining restrictions are lifted and seating capacity limitations are reduced. Regardless of our restaurant capacity, our main goal continues to be the health and safety of both our guests and our team members. To further promote a safer environment and give our guests peace of mind, we have taken several steps for each of our restaurants, including personal protective equipment for our team members, enhanced cleaning processes, social distancing partitions between booths, and team members' health checks prior to the start of each shift. As we mentioned on our last call, we continue to implement a customer survey as part of our checkout process, focusing on our COVID-19 safety procedures.
To date, the response has been overwhelmingly positive. Let's quickly discuss our development efforts. Subsequent to the end of the fourth quarter, we opened our Fort Lee, New Jersey restaurant in September and our Koreatown, Los Angeles and Washington, D.C. restaurant in November. We currently have four stores under construction, including one that may end up opening in early fiscal year 2022. All in all, we still expect to maintain our stated goal of a 20% unit growth CAGR over a five-year period, which began in fiscal 2019. But as you can imagine, in the current environment, there are a number of factors out of our control that could alter or delay our plans. In terms of liquidity, I would like to reiterate how fortunate we are to have entered this challenging time with a capital position that can sustain our company and our growth plans.
As of the end of the quarter, we had $9 million in cash on hand and no debt. We have also increased our revolving line of credit to $35 million from Kura Japan, along with an extension of the payback period from one year to five years. With the expansion of our revolver, our capital position provides a solid runway, not just for supporting the company through the pandemic, but for continuing to execute our growth plans. With our planned capital expenditures for fiscal year 2021, we have just begun drawing down on our revolver. As always, we appreciate the support of Kura Japan and their confidence in the long-term success of our business. Our fourth quarter weekly expenditures of approximately $850,000 per week was within our expectations, and we expect our weekly cash burn rate to be approximately $800,000 for fiscal Q1 2021.
Our expected Q1 burn rate is higher than our burn rate expectations for subsequent quarters during the fiscal year as our D&O insurance payment falls on the first quarter. Lastly, due to the ongoing uncertainty driven by COVID-19, we will not issue financial guidance for fiscal year 2021 at this time. In closing, I would like to thank all of our team members for their tireless efforts in serving our guests during this challenging time. With strong pent-up demand and solid financial footing, we are excited about the long-term growth opportunity of our business and will remain prudent as we navigate through this challenging environment. This concludes our prepared remarks. We are now happy to answer any questions you have. As a reminder, during the Q&A session, I may answer in Japanese before my response is translated into English. Please bear with us. Operator, please open the line for questions.
Ladies and gentlemen, we will now have our question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. For participants using speaker equipment, it may be necessary for you to pick up your handset before pressing the star keys. One moment please, while we now poll for questions. Our first question comes from James Rutherford with Stephens Inc.. Please proceed with your question.
Hey, thank you for taking the questions. A few from me. I wanted to start on Texas, where I think you said the comp was negative 24% in October. Just to clarify, was that achieved without being able to run the primary belt? Also, what off-premise mix did you see in Texas during October compared to the 17% level for the company-wide?
Sure. Thank you, James, for your first question. Please allow me to answer in Japanese.
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Yes. As of October, we've been able to offer the full Kura Experience, including our primary belt in Texas, which is certainly a driver for our improving comps in that market.
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In terms of the Texas off-premises mix, our 17% mix for Q4 has decreased as we've entered Q1, and we've been able to reopen some of our dining rooms and increase seating capacity in other markets. Across our system, we're seeing a lower off-premises mix in Q1. That being said, the absolute dollar value is increasing. It's just the mix that's going down. Texas is following that same pattern where the mix is lower than it was in Q4.
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We're experiencing great momentum in Texas, and we're excited to continue to deliver a great guest experience through our conveyor belt and the unique Sushi Suite. We're excited to continue to build out our off-premises business in that market, and we think that between these two, we'll be able to maintain the strong comps we've been seeing so far in this quarter.
Excellent. That's very helpful. To look at that off-premise sales mix at 17% of pre-pandemic sales levels. Very impressive. Just what were the main pieces that drove that improvement? Was it primarily the addition of delivery? Because I don't think that online ordering has been launched system-wide yet. Maybe just unpack the components of that nice step up in off-premise, please.
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We began a lot of different off-premises efforts during Q4, and we began to see the full impact of that starting in Q1. That's really been driving the increase in off-premises sales. I'm sorry, go ahead.
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Then the growing dollar amounts, that's certainly being driven by Grubhub. So we feel that rolling this out system-wide was the right move for us. If I could just add on that a little bit. James, you mentioned that we don't have online ordering yet. I'm extremely excited and proud to announce that actually, if you go to our website, you can order online now. We started working with Square to begin a pilot there.
One of the most interesting things that we've learned as a result of Grubhub implementation was that the vast majority of our guests that were ordering through Grubhub were actually ordering for pickup as opposed to delivery, which is completely not what we'd expected. Once these results became apparent to us, we decided to partner with Square as well, because their fees for pickup are much, much more competitive than Grubhub's. Because of the Square implementation, we've actually been able to offer online ordering on our website. Our wait list app is actually undergoing an update right now, I believe it's being actively reviewed by the Android and iOS app stores, that will allow people to check into the wait list app and then directly order through the app.
If you're at Irvine, which is one of the test stores, and you see a two-hour waiting period, we've got the button right there to say, "Hey, why don't you order to go instead? You don't have to wait two hours." I'm extremely excited about that.
Excellent. Thank you, Jimmy. Thanks, Ben.
Thank you, James.
Thank you. Our next question comes from Peter Saleh with BTIG. Please proceed with your question.
Great. Thank you. I believe you guys mentioned you had three restaurants that opened so far in 2021, and there's four more under construction. Can you just talk to us about the four that are under construction, what the cadence is of those openings throughout this year?
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Given that we already have these four units under construction, looking at our historical build-out times, we'd expect opening timings of between Q2 and Q3 for the four stores. That being said, because we're in the pandemic, we might have unexpected delays with city inspections, permitting, etc. There are externalities, but as long as we don't face those, we expect Q2 and Q3 openings.
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As Jimmy mentioned in his prepared remarks, we may decide to push back one of these four units into fiscal 2022, depending on the ongoing circumstances of the pandemic.
Understood. Okay, very helpful. Can we ask about the third party delivery? I know you partnered with Grubhub. Are you guys in conversations to add other delivery partners to expand the off-premise business?
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As an overall context for our ultimate strategy, we'd like to move all of this in-house to mitigate third party fees. That's been one of the main reasons we decided to start working with Square.
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Then we're very excited for what the app upgrades will mean for our off-premises business. I just add on to that, Square actually has a partnership with both DoorDash and Postmates. We have the option to turn on that functionality at any point. We're waiting on this because, again, the goal with Square is to grow our pickup business and not have margin pressures. If we decide that offering delivery through Square is the right decision, that'd be very easy to implement.
Understood. Right now, is the partnership with Grubhub for delivery? Are you doing delivery with them, or is this primarily pickup? What is the pricing structure? Have you adjusted the prices, if it is delivery, to be higher on Grubhub site?
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With Grubhub, we're offering delivery and pickup. The fee structure for delivery and pickup are different. What was very interesting about the first month of Square, or I'm sorry, of Grubhub, was that we found that the majority of sales are coming in through pickup, and that's why we've moved to Square, or that's why we were rolling in Square, so that we can capture and continue to grow these off-premises sales with fewer margin pressures, while also reducing friction for our guests that are making online orders.
Understood. Thank you very much.
Sorry, I skipped one thing. For the pricing structure, because of the Grubhub fees, our Grubhub menu is more expensive than our in-restaurant menu. Because of the fee structure with Square, we're able to offer the same in-store prices. If you're ordering a pickup order, a takeout order through Square, there's zero difference in fee as if you got into the restaurant yourself to order it.
Understood. Thank you.
Thank you, Peter.
Thank you. Our next question comes from Jeremy Hamblin with Craig-Hallum. Please proceed with your question.
Hey, thanks for taking my questions, guys. I actually wanted to follow up on the online ordering and just understand a couple of things. First, in terms of the timing of potentially rolling out Square to the broader set of stores, what does the timing look like on that? That's part one. Part two is, what type of tickets are you getting? What's the average order size that you're seeing? How does it compare to your typical ticket when you're getting a digital order for pickup and delivery?
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We're actively rolling this out to more and more stores. We just added a second test store today. We're a little bit hesitant to give a firm date for the rollout, but we do hope to have this rolled out within the end of this calendar year. Given how quickly we were able to roll out Grubhub, I think that's a completely realistic goal.
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We haven't disclosed any information about ticket sizes yet, we'd prefer not to disclose ticket size information at this point.
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Regarding delivery.
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I'm sorry, I misspoke earlier. Our ticket averages pretty much are mapping on to double our indoor receipts, and I think people are just ordering for couples or families. Instead of the $18-$20 average ticket, we're getting double that.
Our average party size is about, I think, 2.2 people, and so it's pretty much exactly the same as indoor dining.
Okay. I think we can interpret that as if you are able to get pickup through Square, is it fair to assume that those tickets that come in because of the size of them, is that likely to be margin neutral versus your pre-pandemic levels, or is that still going to be slightly dilutive versus pre-pandemic levels?
Jeremy, I'm sorry. Let me make sure with Ben if I understand your question correctly.
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F or Square in particular, we're very excited about what it's going to mean for our business, not just for the customer experience, but for our margins as well. Up until now, most of our pickup orders that have not been coming in through Grubhub have been processed by our servers manning telephones. With the Square order, we expect the need for that to be much, much lower, and so we'll be able to reassign those servers and have a more efficient staffing process. That'll actually help our margins from a labor perspective. I know for some of our peers, their packaging has had an impact on margins. With off-premises sales, we don't have any disposed plates, unlike with the conveyor belts.
They offset each other, and so we expect no margin difference between a Square order and an indoor order.
That's a great opportunity. Okay. I wanted to come to another point and make sure that I heard the details correct. In terms of your present cash burn rate, I think what you said is for Q1, it's running in the $800,000 per week range, right? We're almost at the end of Q1. That you expect that to fall a little bit as we move forward. Is there any additional color that you might be able to provide on that or just clarify the cash burn rate?
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The first thing we want to make clear is that the $800,000 per week burn rate is limited to Q1. We don't expect that to go forward past Q2, Q3, Q4. We expect the full year burn rate to be materially lower than the $800,000 we're seeing for Q1.
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For the bucketing for the $800,000 in Q1, $450,000 were spent on CapEx, $300,000 on G&A and $50,000 on restaurant level contribution. Given that we already have three units open and four under construction, the CapEx expenditures are going to be front loaded for the fiscal year. We expect the CapEx bucket to have the most material change as we proceed through the fiscal year.
Okay.
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Go ahead.
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With the steady decreases in CapEx spending throughout the year, we expect our full year burn rate average for CapEx to come in at half or less than half of the burn rate we saw for CapEx in Q1.
Okay. That's very helpful. Just taking that one step further, as we get into calendar 2021, and hopefully the vaccine information presents, hopefully, a little bit of a light at the end of the tunnel on the top line results and maybe having fewer restrictions. Do you have a sense now with the Square relationship and the way that your business is running today, what types of sales volumes do you need to get to that would make your cash burn rate relatively neutral? Do you need to be at 70% of pre-pandemic sales, 80%, or can you give us a sense of where you need to recover to get that burn rate down to flattish, again, assuming the CapEx is a little bit lower than what you just had for Q1?
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To provide some context for our answer, we'd like to just note that we're a high growth concept and that as our restaurant level operations improve and no longer are decreasing, or I'm sorry, are no longer part of the weekly burn rate. We would want to reinvest. Those savings we'd want to reinvest into CapEx and continue our unit growth.
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Given that we want to maintain a 20% unit growth CAGR, we think it'd be difficult to achieve a neutral burn rate without our business recovering to pretty much 100% of pre-pandemic levels.
Okay, great. That's helpful color. Thanks for taking the questions and good luck.
Thank you, Jeremy.
Thanks.
Thank you. As a reminder to our audience, if you'd like to ask a question, please press star one on your telephone keypad. Our next question comes from Andrew Strelzik with BMO Capital Markets. Please proceed with your question.
Hey, thanks for taking the question. My first one, I was just hoping you could give a little more color on the Fort Lee store and kind of what's driving the really strong sales performance there relative to the capacity. Is there anything that you can kind of learn from that and adapt to either the legacy stores or site selection as we go forward here?
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Fort Lee's performance has even actually surprised us. It's been a very pleasant surprise. We think the biggest factor for Fort Lee's success is its location. It's in an excellent location in New Jersey, and the proximity to New York and the George Washington Bridge, we imagine, gives us access to multiple traffic markets.
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Another thing that we've been thinking about is that while there's a ton of sushi demand in that area, there isn't a lot of revolving sushi. We're addressing demand that has not been addressed up until this point.
Okay, great. That's super helpful. Shifting gears a little bit to the off-premise business. Where you've seen the dine-in business rebuild maybe the most, and you're layering in the off-premise on top of that, especially with the sales dollars increasing, how are you finding the operational component to that? Do you think that, in particular, with some of the marketplaces that you're working with now, do you find that those customers are more new customers or do you think that this is just a transition of the order from one channel to the other?
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In terms of the operational implementation, it was actually quite simple. We haven't really run into a lot of difficulties there. In terms of our guest mix for the off-premises orders, obviously, we imagine a huge portion of them are existing fans, but being on the Grubhub marketplace, I'm sure, has opened up the possibility for new guests to come in. Grubhub is pretty tight-lipped with its data, so we can't really actually confirm the number of new guests that are coming in through Grubhub versus existing guests. Listening to the store managers, they're saying that the Grubhub marketplace listing is bringing new guests.
That's great to hear. My last question is, if you could just discuss the dynamics of reaching out to your customer base and creating the awareness as the stores are opening, as the capacity limitations eased in the market. You talked about going to 75% in Texas, for example. How are you finding the receptivity around that? How quickly, when you see capacity limitations change, does the demand change as well? Have you evolved in all your tactics around communicating with the customers? Thank you.
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The customer response in terms of our marketing efforts, I think, has been incredible. They've been extremely receptive. After we have reopened an indoor dining room, we're usually hitting capacity in that market within a matter of days. When we reopened the conveyor belts in Texas, we were able to make that announcement, and that was big news for everybody, and we saw traffic levels immediately rise. One of the really great things that we're experiencing now, this is just adding on to what Jimmy said, but our rewards program is becoming even more useful. As of today, we have over 70,000 members, and these are all people that are quite dedicated. The activation rates with these reward members is much, much higher than the industry average.
We've been really successfully able to leverage this existing database in terms of effectively reaching out our guests, which I think is one of the big drivers for how quickly we've been able to pack our restaurants once we had our capacity restrictions lifted in various markets. The other thing I'd add is it's good to have new news. Obviously, reopening a dining room is news. Being able to reopen the conveyor belt is news. This off-premises stuff is also an opportunity for new news, especially once we have the integration into our wait list app finalized. That'll be another advertising push for us. We're constantly working on creating new ways to engage with guests and keeping them excited about our business.
Great. Thank you very much.
Thank you, Andrew.
Thank you. Our next question comes from George Kelly with ROTH Capital Partners. Please proceed with your question.
Hi, everybody. Thanks for taking my questions. First, I was hoping that we could go back to the Fort Lee opening. I guess my question is about, you mentioned a couple of times now that that location has exceeded your expectation. With it being your first Northeast location, just wondering why that is, what you're finding. Is the brand already better known than you would have thought before opening? I guess the second part of that question is, does it give you confidence to open additional restaurants in the Northeast?
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To answer your second question first. Yes, we are extremely encouraged by the results we've seen in Fort Lee, and we're actively scouting new sites in the Northeast, and some of them are already in our pipeline.
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The reason that we chose this specific location in the New Jersey, New York City market was the Fort Lee market satisfied a lot of our existing site selection criteria. It indicated that it would be highly successful, and it has been highly successful. If I can answer your question about brand recognition, my assumption would be that our brand recognition in the Northeast is extremely minimal given that our core markets are in California and Texas. I really think the Kura Experience is what has drawn this huge traffic. Whenever we enter a new market, our advertising strategy is to air promotional videos showing off the full Sushi Suite and just exactly how much fun our restaurants are. That strategy's been very successful for us in the past, and I believe it's been successful with Fort Lee as well.
It's extremely encouraging that we've been able to enter a new market and do so well for us immediately, just on the strength of our offerings as opposed to existing customer goodwill.
Okay, great. Next question from me, back to CapEx and new store development. How long does it usually take? The direct question is, in 2021, are you still going forward, full steam ahead with your 2022 and beyond development pipeline? Is that a lot of the CapEx budget that you talked about?
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Our revolver is $35 million as of November. We've drawn down $3 million, bringing it to $32 million. With that capital access and looking at our ongoing performance, we have a very solid runway for fiscal 2021 and 2022 to maintain the 20% unit growth CAGR. Obviously, we'll continue to watch our performance and make sure that we're managing our balance sheet. At this point, yes, we are planning 20% growth.
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While we have the $32 million revolver right now, and our capital position is strong, we're actively building and going through every possible scenario for how the pandemic is going to shake out. This is an ongoing discussion among the U.S. board of directors. Our last decision in terms of a capital raise was to increase the size of our revolver. Every option is on the table, and we want to make sure that, and we are by preparing for this now, to be ready to make the best possible decision when the timing is appropriate. Yes, we're very excited.
Okay, great. Last question from me. Since, I guess, this summer, I've seen some real modest pricing changes across your, not at every restaurant, but at quite a few. Just wondering if you're feeling like pricing, and this is all for in-store, it's at a good level now, or should we continue to expect sort of modest annual sushi pricing increases?
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Our pricing strategy is extremely important to our business mission. We think a huge part of our consumer appeal is our competitive price point and the accessibility to a huge market. We're always extremely cautious with pricing. Historically, the only pricing we've taken has been to coincide with minimum wage increases, and we've taken very small increases just to offset that labor pressure. We've typically taken, what, $0.05, $0.10, $0.25. In terms of this summer, you might be referring to our Texas markets. While there haven't been statutory minimum wage increases in Texas since we've entered that market, the competitive hiring rates have increased to effectively increasing the amount of minimum wage necessary to maintain our workforce, which is why we decided to take the first pricing leap in Texas.
Going forward, we plan to do the exact same strategy where we have our pricing coincide with minimum wage increases, and they'll continue to be extremely modest and designed only to offset the increase in minimum wage. We're not planning on taking any pricing as a way to grow our margins.
Okay, great. Thank you.
Thank you, George.
Thank you. There are no further questions at this time. I'd like to turn the floor back over to Jimmy Uba for any closing remarks.
Thank you very much for your time. We look forward to see you at the next call. Thank you very much.
Ladies and gentlemen, this concludes today's webcast. You may now disconnect your lines at this time. Thank you for your participation, and have a great day.