Welcome, everyone. We're gonna jump right into it. Jonathan Neman is one of the three founders, current Chief Executive Officer of Sweetgreen. Mitch Reback, the company's Chief Financial Officer. Gentlemen, thank you know, so much, so much for coming. You know, let's see. You know, went public in, you know, what was obviously a robust IPO market in the second half of 2021. I mean, at that point, you know, and I think investors were generally focused on probably what could go right in the business maybe a little bit more than what could potentially go wrong. You know, which is always interesting to see how, you know, waves kinda come back and forth.
You know, certainly I, I think just from your stocks' movement, a number of things over the past year did not meet your own expectations. Not to, you know, necessarily dwell on the past, but let's, you know, think about, you know, kind of in the future of, you know, putting Sweetgreen on kind of the right pace, the right quality, you know, of growth in terms of just, like, resetting kind of expectations, you know, for what had been obviously a very dynamic world. There's so many things that happened that we couldn't have predicted, of just kinda setting the path, you know, for 2023 going forward of achieving growth and, very importantly, reducing risk. It was meant to be, obviously kind of like a great question to kinda kick it off, and I'll get more into the specifics.
Thank you, John. A big question. I would probably start off and say, I think one of the biggest changes from when we went public till now is when we went public in November 2021 and throughout 2021, one of the driving assumptions in the business was by the end of 2023, urban office occupancy would be back to somewhere like 90%. Think of it as really pre-COVID levels. I think as the year unfolded, first year being public, what we find is that the data is stuck somewhere in the high 40s, you know.
Yeah.
-and really seems to be pretty sticky there. Sweetgreen, as you know, if you certainly look back to the time we went public, has a very large urban footprint and a footprint in central business districts.
Yes.
These stores today, fortunately, are the fastest growing piece of the fleet. So, t here is movement, but I would say is off considerably from where they were in 2019 and really from where we expected them to be right now.
Yeah, being a part of that, this urban recovery. I will just focus on this thing. Self-help that you can do to kinda drive some of the recovery in urban stores outside of just overall traffic. Maybe it's consolidation of your store footprint. Maybe different things that you can do digitally. I mean, just kind of like, okay, listen, this is the environment. I don't know when we're going back to 100%. It's not gonna be by the end of 2023. Maybe some of that, what the part that you can control or want to control versus the environment being what it is.
Yeah. I can talk a little bit about that. There's a number of things that we've been focused on for those urban stores. One is just how we operate those stores, focusing on throughput and throttle. Throughput being our front lines, speed of service, and o ur throttles on our back lines. You know, we've, you know, during the pandemic, you know, customers, we got used to all digital business.
Yeah.
You know, customers wearing, you know, team members wearing masks, kind of lost a lot of that hospitality experience across the whole industry.
Yes.
This has been a huge focus for us across all of our stores, around really bringing back the Sweet touch, bringing back the hospitality, bringing back that vibe inside of our restaurants. With that, a huge focus on staffing, call-outs, our full-time/part-time mix and how we deploy labor. We've made a lot of improvements there. We reported in our last earnings that we saw throttles in our highest volume stores, in those urban stores, where you really have this short window to capture a lot of revenue. We saw about a 20% increase in those throttles. We're leaving a lot less money on the table during that peak lunch than we were before.
Yes.
It's been a lot of things in terms of training, you know, how we deploy, you know, how we actually build those lines for faster throughput and a number of other changes. The second has been call-outs. Call-outs, something that has plagued the industry during COVID. We've seen about a 22% reduction in call-outs from our peak, continuing to see improvements there. With that is our full-time/part-time mix of more of a full-time workforce will help us. You know, they're just more productive the more hours you get working. Overall, we see higher NPS scores with more higher full-time mix and better margins. Again, another focus. From a channel perspective, you know, we've had this Outpost channel pre-COVID. It was growing like crazy. It has actually been growing pretty significantly this year.
We recently introduced catering, and catering works really well in this environment. While people may not be going to work five days a week, which makes sense for the Outpost customer, they're coming together and teaming a few days a week, you know, more around, you know, some teams get together once a week. Sweetgreen becomes this perfect opportunity for catering. Catering was piloted last year. It has been growing. We officially launched it last week with just enormous interest around the brand, as you can expect. It's kinda like the perfect food.
Yeah. Absolutely.
for food for catering. A number of improvements. In terms of the footprint itself, you know, if you actually look at those, you look at those urban stores, while they're not where they were, I think most people would actually be pretty happy with those stores.
Yes.
They're still very. If you go walk around our stores in New York City, I don't think anyone would be like, you know, "These stores are empty." These stores are still packed.
Yes.
It's just they were, you know, they were just crazy.
Right. Yes.
We don't think we need to close those stores. However, we are looking at the fleet as leases roll-.
Yes.
to think about how we can optimize our footprint.
Yeah.
recently we announced 2 stores that are both-.
Yeah.
in urban environments, one in Boston, one in New York, coming up on their lease expiration.
Yeah. Yeah.
Decided not to renew. We have stores very close by in both of those. As you know, 2/3 of our business is digital.
Yeah.
We're able to move that traffic very effectively.
Yeah.
Overall, you're gonna see a nice flow through by moving that traffic. You'll see us very surgically adjusting our footprint as leases roll in those urban environments to improve, all to improve our profitability.
Yeah, so regaining urban traffic in your core markets being one point. You know, new unit volumes, new market entry, you know, I would suggest, at least from my perspective, you know, would be another point. In terms of, hey, you know, being closer to 100% in new markets, there's no such thing, but, you know, closer to 100% of stores within, you know, within new markets or new trade areas, what have you. I mean, talk about how the company, you know, has perhaps, you know, pivoted, you know, to again, you know, perhaps reducing some risk or uncertainty and just kind of, you know, being a closer range of band in terms of what's successful versus not.
Yeah, I think, you know, we talked about in the last earnings call is a huge focus on disciplined capital efficient growth.
Yes.
In this environment, you know, we have a very strong balance sheet, and we wanna protect that balance sheet. We know when we-.
Congratulations.
Thank you.
Great decision.
Thank you. We wanna protect the balance sheet. We know that when we choose the right real estate, we execute well, the return on capital that we can achieve is just phenomenal. We target a year 2 42%-50% Return on Invested Capital. We've maintained that threshold, we're just focused on slowing down a little bit to make sure that we execute. We're not, you know, We don't need to be heroes and open stores that push us out of our comfort zone. The things that we've done differently, one is going and looking at more iconic stores, especially with the market entry. I think what we did over the past few years is we densified markets a little bit faster-
Yeah.
-than we typically would have in our, you know, going back in our history. As you'll see in a lot of the markets we're going, instead of going and opening seven or eight stores right away, we'll open three high-profile stores with the right unit economics. That will give us, not only let us build the brand, build the people pipeline, but a lso give us a lot of data around the customer and traffic patterns. We have a lot of spotting data, given our app, on how people are using the brand. Based off of that, we can then plan our second wave of restaurants. That is, you know, that is one, kind of shift in terms of... It's actually going back to very much how we used to do it.
Right. Yeah.
What we've talked about is, you know, bringing back our intimacy at scale playbook.
Yes.
You know, one of the things that has made Sweetgreen is our focus on community and how we built the brand on the ground. You know, these are things from when we've opened restaurants. You know, how do we engage with local suppliers and partners, have a chef collaboration, work with local impact partners, have an opening day party, kind of make some local swag. It's all kind of simple things, that during COVID, you know, we're operating remotely. The best thing we could do is offer a free delivery promo.
Right.
you know, we really switched and brought that back, and the results, again, have been phenomenal. I think, John, you were. I couldn't make it, but you were at our event in Miami.
Yes.
What'd you think?
I mean, well, it's the single best, most delicious like I would come back probably five days in a row product I've had.
It was good, right?
It was fantastic.
Yeah. Yeah.
This is what point. You know, the Food Network does a, you know, for, I think it's 20 years, like more or less, you have food and wine show in Miami every February and have a number of different chefs and collaborations, and you had a collaboration with the... I mean, to call a Michelin-starred chef up and coming is not really true. A chef that's kind of made it with a huge impact in Miami almost overnight, it feels like Boia De . He did a chef's collaboration with you, and it was phenomenal.
Yeah.
The beverages and the sweets and everything about it was like, wow. That bowl was amazing. I think you could do it.
That's, and that's what I mean.
That's the point. That's why I'm so excited about it.
That's the exact idea.
Like, you could do that.
That's what built our brand is that you know, that local relevance, working, you know, having that culinary credibility working with these chefs and really connecting to the community. That's what I mean by intimacy at scale. It's connecting and being relevant to each community. That's the Sweetgreen special sauce. We did it, you know, we didn't do it when we launched Miami, but we came and we did it, we did it last month, launching with Boia De , and we're very excited for that bowl to launch. Kind of where we haven't launched with that playbook, we're going back and doing it, and we're seeing some nice results. We are also launching all new markets with that more, you know, creative local playbook.
You know, chef's collaborations are, you know, certainly are interesting. You know, talk about that pivot in terms of more craveable, you know, types of products that still fit within, you know, your overall food ethos. I mean, you know, just, you know, kind of the opportunity for, you know, the brand to. I mean, how can I say? You know, expand its reach, also expand its frequency, give people the opportunity to maybe treat themselves on a Friday afternoon different than what they would eat on a Monday afternoon, for example. I mean, what type of an opportunity, you know, do you have and what, and what led you to believe that you did have that opportunity?
Yeah. You know, so what you're referring to is what internally we call commit to cravability. Maybe by answering that, I'll rewind a little bit. When we started Sweetgreen, there was pretty much no hot food. There was no rice. There was no warm bowls. It was just salad. Over time, we've evolved the menu, and warm bowls today make up a larger portion of our menu than salad. We're already been moving this way, you know, a long kind of evolution towards where we are today. We think that this is just a natural extension of where we're going.
We've always believed that Sweetgreen and the food that we stand for, it's about, it's about health, but really it's about real food. What we focus on is the suppliers that we source from, the soil health that drives the taste of that food, and that's what drives nutrition. We're never about, you know, calorie counting.
Right.
You know, we do think that what makes food healthy is unprocessed food that is very nutritious. We, we kind of really own that platform. That's where this commit to cravability really just extends our, you know, the advantage we have and the brand positioning we have into different day parts, occasions, and broadens our consumer. You know, we don't think it should be, you know, Sweetgreen stands for just salad. We think that we have a lot of license to get into food that is more applicable during dinner. You know, desserts that are, you know, our wink or version of healthy dessert. We just launched a crispy rice treat. You'll see some more things coming out on sweets.
We have a lot more coming out on the drink side. This year you'll see a lineup of new menu items. What we're really excited about, one of the ones that's coming up next month or just in two weeks, is our Chipotle chicken bowl. This will be our first bowl, our first bowl without any lettuce. It's, you know, it's essentially our version of a burrito bowl. We've, you know, I'm excited for everyone to taste it. It's just incredibly craveable.
Okay. Nice.
We have a number of other hits coming out, some with, some partnering with chefs, some made internally. You'll see, a lineup of new menu items coming this year, all pushing towards that heartier, more craveable offering. We are working internally on a number of things around new proteins. We think that proteins often drives the occasion. We have a few things in the works around new center of the plate proteins.
You know, I don't wanna just skip over that. I almost did. Yeah. How important are new center of the plate, you know, proteins to you? I mean, is it? I know you do handle raw chicken in the store but, you know, cook it, you know, in the ovens. I mean, do you? Can you do that? I mean, it would be for example, Chipotle, the brand killed it, for example, with their brisket, which actually came in pre-cooked.
Yeah.
You know, kind of like recooked and reheated in store. You know, do you have opportunities-
Yeah
... that are like that in the future? I mean, in some cases, that can be a real needle mover when you get it right.
Yeah. We absolutely do. Well, first of all, our kitchens are scratch cooking kitchens. We have, you know, the lines and ovens are built that give us a lot of capability beyond what we do today. We do roast all of our vegetables in-house. We have 2 types of chicken that we make. We have a blackened chicken, a blackened roasted chicken, and then a chicken breast. We also do a fish, a Steelhead. We've been testing into salmon as an alternative. We have a number of things that we're working on, one being a turkey meatball. We do think that meat steak is not, totally not off the table, s omething that we do see us doing at some point, and we do have the capability today.
We totally agree with you that menu innovation is going to be a huge driver of growth in comp for us, not only for our existing customers, but opening up those day parts and making us more relevant to the, you know, across the country where people wanna eat healthy but maybe wanted something a little bit heartier.
Yeah. Helpful and healthy, you know, are kind of two different things.
Totally.
You know, I mean, you can.
We've been saying meeting customers where they are.
Right.
You know, there's days that I wanna eat a salad, and there's days that I wanna eat real food that is unprocessed.
Right.
But-
Helpful
... but I maybe don't want lettuce, and I want a bowl-
Right
of rice and chicken or steak. I consider that healthy.
Yes
I do think our customers will as well.
You know, the, the balance sheet didn't determine your slight reduction in unit development, you know, for, you know, for this year. You know, talk about, you know, just kind of like what kind of fell off, if you will, you know, the overall development pipeline. As you think about, you know, the future footprint, you know, beyond, you know, 2023, how should we be thinking about, you know, kind of progressing, you know, towards the TAM?
Well, John, we agree with you. The balance sheet did not determine the pace of new stores. The balance sheet remains extremely healthy. When we look at the stores and the number of markets, we really wanted to, in this environment, bias it towards higher, more, higher confidence markets, higher confidence stores. As John talked about, we densified, we think, a little bit quickly in some of the new markets. Pulling that back at the margins, we think, will kind of lend itself to a stronger portfolio, allowing us to go in and densify in the next year or 2.
Yeah.
We think the TAM is perfectly secure. We actually think it's more secure in this environment of higher interest rates, where it's much more difficult for someone to come into our space at this point in time. In that context, kind of slowing up a little bit, getting stores to perform at a higher rate, turning the company profitable is probably more important than just opening up stores.
You know, we have, you know, talked previously about margins. I think, margins relative to expectations, it really wasn't in your prime costs, food plus labor. It was really in the fixed cost component of your business. The fixed cost component of the business was driven by volumes, right? More or less.
Yeah
... I don't want to completely put like words in your mouth. Is there any self-help? Would you want to engage in any self-help on the margin side, or do you guys feel that you have the fixed and variable components set correctly in the stores as of now?
We think there's always opportunity. When we look at our margins, we clearly see a path to over 20% in the next few years. While you're correct, our prime costs are very competitive, we do see opportunity both in cost of goods and labor. If you know, if you look historically, the company's run around 32% labor. We guided this year to 31% or better. You're starting to see some of that happen. I think in terms of the fixed cost, we see opportunities. Right now, I would say the occupancy runs a little bit heavy. That's a factor of the urban recovery.
Yeah.
That will work itself out over time.
Yeah.
The industry took pricing that I've never seen in my happy.
I know it's embarrassing. I mean, I don't even wanna do the math. It's something like 28 years doing this. Anyway, so here I am. you know, but nearly, you know, 10% price. You know, the question that, you know, I've asked many people is: Do you think the pricing has influenced your traffic? It's like, "No." A lot of people say, "Well, everyone's taking pricing. The consumers have an expectation. They were gonna trade out whether we took pricing or didn't take pricing." I said, "Okay, well, that'd be really interesting to actually be able to test that, but I'm not sure that's the case." you know, the industry did take, you know, very high pricing. The industry overall had negative same-store traffic. You know, it's gonna be, you know, kinda correlate one to another.
How do you feel about the level of price taking, I think, more price coming up soon? I think maybe you just did. You know, just, you know, the... You know, we talked about broadening you know, broadening the food appeal, but how do we feel about the overall pricing? You know, it's like we wanna have a more frequent consumer, a broader consumer, but you're also making the brand in nominal terms, more expensive. You know, talk about that balance there more.
I think what I would say is, you know, in 2022, we took 6% in price. We took all of that in January and had no additional price moves in 2022. The beginning of 2023, we took around 3% and envision taking a small price increase in the next several months. What I would say about it is our relative price points have actually improved as the industry has taken probably twice as much price as us. We feel as though that our product has a habitual nature, a high-frequency nature, and a very loyal customer. We haven't really seen a lot of pushback from our customers around price. Having said that, in this environment, we're approaching it with some degree of caution.
Okay. You know, overall, full year pricing, I mean, at, I think at this point, I mean, you guided, you know, to some pricing in the third quarter. I mean, expecting around 4% for 2023?
Roughly.
Okay. All right. Perfect. I mean, you know, the industry you know, taking, you know, taking more. When you did, you know, hindsight being 20/20, the 6% price that you took in January of 2022, I mean, would you have done it in smaller increments? You know, based on the frequency of your customer, what do you think the right thing, you know, is a series of 2% going forward, or do you like kind of the one and done?
No, I think going forward.
Great
we see more frequent, smaller increases, that allow us to measure the impact on traffic and to see it on a more regional basis.
Done in often cases, more surgically. We have a lot of ways to impact pricing without doing kinda broad-based pricing. One thing we've talked about in the past is micro-zoning. You know, you have.
Right.
You know-
Yeah
... that's one way in which you do it.
Yeah.
You have, you know. There's, you know, stores in a lot of really high-income neighborhoods.
Yes
... with really high labor where, you know, people are totally fine paying.
Yes
... paying extra. We can impact the overall pricing by changing pricing in some of these micro-zoned areas. We also have different channel pricing, delivery versus in-store, number of other opportunities in that way. What's I think important is, you know, the barbell pricing strategy that we do have. It's very important for us to have an entry level, you know, around $10 in all of our markets. Right about 10 or under 10 in all of our markets.
Yeah.
We do have a full meal that you can get.
Yeah.
We think that's really important. In certain places, you know, we're gonna have, you know, bowls that, you know, bowls or plates that get, you know, $15 or $16. To Mitch's point, on a relative basis, I mean, I'm shocked every time I go out to eat these days how much everything has gotten. On a relative basis, I do feel like Sweetgreen, actually, has done well, compared to peers, but, you know, looking at the CPI print this morning, inflation's definitely, you know, inflation is definitely an issue. What is good news for us is, on the labor side, we've seen an easing of the inflationary pressures. We are fully staffed.
Yeah.
We're seeing a much more robust labor environment. We're seeing those quiet quitting kind of going away.
Right.
Those call-outs going away.
Yeah.
We've seen our head coach stability increase by eight months last year. We're holding on to our head coaches a lot longer than we were. And with that, we're seeing turnover rates come down significantly. We expect this year, turnover to end you know, kind of at the company's historic lows.
Nice.
You know, one just thing that I think is really important is the change we made internally around how we operate the company, is we moved to more of a decentralized organization. We've introduced what we call an RGM structure.
Yes.
Where we have four GMs running the company. We think this is really important. As we've studied some of the best companies, retailers around the world, we found that having more empowerment, accountability, and entrepreneurial energy at closer to the customer and the team member drives much better results. We made this change at the end of last year. With that, we flattened the organization, we removed layers, and we gave a lot more power to these RGMs.
Yes.
The results so far are phenomenal. One, you know, follow the money. Everyone is now compensated on a profit sharing. With our focus on driving towards profitability, giving the GMs, you know, both the tools and the incentive around profit is working. We've also expanded our area leader spans in our push to profitability and changed their bonus program. Again, we're seeing great results there. You know, huge focus on this path to profitability and accelerating that path to profitability. I think this decentralized organization has been a huge unlock for us overall.
digital, I mean, so you really set the path, I think, in digital. I mean, as a very young company, I mean, you were famous for your, you know, for your digital, where, you know, your brand was getting a lot of attention nationally or maybe even, you know, globally, you know, based on how high your digital sales mix is generally seen as what restaurants would become in the future. In fact, some restaurants have really tried to, you know, achieve what you achieved, you know, some years ago. You were definitely a forerunner there.
Yes.
Digital sits at, you know, always correct me if I'm wrong in my numbers, 60% of sales. Your own channel of that is 40 points of that 60 points. That comes through, you know, at, you know, at, as you sweetgreen.com or through the, or through the app. You know, part of this, it's interesting. Talking about an app redesign that I think actually requires you to download the new app in order to work.
No, just upgrade.
Okay. All right. Upgrade the app, so I got a notification. It's like you have to.
Yeah
... you know, update your, update your app. That's just something, you know, something to do. you know, so, talk about the app redesign. you know, talk about, you know, your initial, you know, kind of forays into loyalty. You know, talk about how it's like, "Hey, we had a competitive advantage on digital." You know, if that's closed, but talk about re-expanding that. Just, you know, again, you know, part of... One of the... Food made this business great. You know, digital supercharged it, you know. Let's talk about, you know, that second component of, you know, the digital path going forward.
Yeah.
Long question.
lot to unpack there. Okay,
It's very important.
So, uh-
You talk and I'll listen.
first and foremost, Sweetgreen is a food company and a brand at its core. Always has been, and we always believe technology was an accelerator, a wedge for us to improve our unit economics, you know, serve more customers. We were first movers in that. You know, one of the first companies to introduce a mobile ordering app, secondary make lines, et cetera.
Yeah.
We, you know, we're continuing our innovation both on the digital side and broadly on the technology side, we may talk about our Infinite Kitchens and our push into robotics, which we think is kind of the next frontier from a technology perspective. As it relates to the app, a few things. One is we recently introduced a replatform of the app. That was done partially for the front end, but a lot of it for the back end and how it will actually accelerate our ability to develop on that app much more quickly.
Yeah.
Specifically, we have three separate apps.
Yeah
an iOS app, Android app, a web app. We combined the code bases.
Okay
... which means we can now develop much faster.
Okay.
With that, we redesigned a lot of the customer flows, made it easier to search for locations, and really made the app make much more sense for our omni-channel model. So far, we've seen really great success. Not only are we developing and pushing updates much faster, but we've seen a 10% conversion increase on that app. Customers are converting at a higher rate once they're within that app.
Converting mean buying.
Buying.
Okay. I got you.
Yes. People are going in there.
I gotcha. Just checking.
What I think you're gonna see with the app is actually much more to come than you've seen. Again, think about the replatform as a new platform, which we can now more quickly add more features given the new code base.
Yeah.
Things that are coming, one, is loyalty. you know, I think anyone in technology knows that data is really the gold here.
Yeah.
How we leverage that data. We're in the very early innings of how we use that data and going from kind of, you know, one-size-fits-all experience or cohort experience to truly personalized. You'll start to see us move rewards and challenges, as an example, to be fully personalized.
Yeah.
We know, You know, our CTO joined us from Starbucks. We know that the magic of once you personalize rewards and challenges, the returns are much, much better.
Yeah.
In our testing, we've done control testing on using personalized rewards versus not and how much better that is. As you mentioned, we're in the process of rolling out our loyalty program right now. We're live in three markets today. Far going well. It's Sweetpass and Sweetpass+.
Yeah.
There's a free component.
Yeah
... and a subscription component. Again, Our high digital penetration gives us a lot of confidence. T hat's gonna do really well for us. To be honest, in this environment, not having a loyalty program has been a huge disadvantage.
Yeah. Huge.
In terms of, kind of your broader philosophical question on technology, I think we've always known, you know, back to my earlier comments, Sweetgreen is a brand and a food company.
Yes.
That is, like, the core of what we are. We've had to make certain technology investments to go to market. We're fully aware of the cost of those investments and how at some point there's a life cycle where some of these things mature. COVID did mature the technology landscape. It pulled people forward.
Yes. Absolutely.
... significantly. One, we've been adjusting our cost structure and how we actually build versus buy technology to be more in line with the industry as it's matured, and you've seen that with our G&A leverage that's happening.
Yes. Absolutely.
We're gonna continue to push on that. Secondly, the ownership of the data is really the key and how we can take our lead and make the app much more responsive and personalized in so many ways. We have a lot of things on the pipeline, digital pipeline, on our roadmap that we think are gonna be very cool, whether that's gonna be, you know, localized leaderboards around making your own bowls to personalized menus, to group ordering. There's a lot of things.
Yes
... that we're gonna be working on over the next few quarters and years that we think would drive higher engagement, and help us add more customers. One, within that, you know, payment processing, add, you know, changing out payment processing, adding different payment methods. There's just so much we can do, and the replatform has really allowed us to do this in a much more effective way.
As we, you know, just finish up, I mean, I You know, the next, you know, wave, if you will, the next functionality in terms of you being on digital kitchens and robotics, I mean, when can we experience this in Sweetgreen, and how transformative is it to the business model?
This year, stay tuned. It's coming very soon. We're very excited about it. We've seen it. You know, I was with the team in Boston recently, seeing the lab testing, things are going really well. The machine is beautiful. The efficiencies that we're finding are great. I mean, I think most importantly, the product comes out better and more consistently. The team members love it. It makes their job so much easier. Our team sizes can shrink significantly. Our throughput is just through the roof there. We're excited to bring this to life. What we've guided in the past, as you all know, the Infinite Kitchen really handles the majority of the assembly of the bowls.
Yeah.
If you go into our restaurants, you can see how many people are doing assembly.
Yes.
We've guided that about half of our labor, you know, our associate labor is assembly. You know, a large portion of that will be handled by the Infinite Kitchen. We're very excited for that, for that to come, to learn from it, and we do expect to use that both in new builds and retrofits.
Okay.
It is transformational to the model.
Yeah. Yeah. Absolutely. It's absolutely transformational to the model, and I think will be transformational for the industry.
Sounds great. Gentlemen, let's end with that. Thank you.
Thank you, John.
Thank you. It's a fast half an hour.