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Twin Peaks’ Conversion Lifts Average Unit Volume · Choppin’ It Up by Bloomberg Intelligence

• 0:13
  Speaker 1: Welcome to Chopping It Up.
• 0:15
  Speaker 2: I'm your host, Mike Allen, Senior Restaurant and food Service
• 0:17
  Speaker 2: analyst at Bloomberg Intelligence. Our research and that of bi's
• 0:21
  Speaker 2: five hundred analysts around the globe can be found exclusively
• 0:23
  Speaker 2: on the Bloomberg terminal. Today, we're joined by Joe Hummel,
• 0:26
  Speaker 2: the CEO of Twin Peaks Restaurants. Hey, Joe, sorry we
• 0:30
  Speaker 2: didn't have a chance to catch up at ICR, but
• 0:32
  Speaker 2: this will have to do.
• 0:34
  Speaker 1: This works, This works just fine.
• 0:36
  Speaker 2: Yeah, and I'm sure you've been a very busy man.
• 0:39
  Speaker 2: Fat brand spin off of Twin Peaks and Smoky Bones
• 0:42
  Speaker 2: is less than a week away.
• 0:44
  Speaker 1: That's right. Our record date is the twenty seventh of January.
• 0:47
  Speaker 2: So and shares will start trading on twenty ninth. I
• 0:50
  Speaker 2: think I saw, yeah, twenty ninth. Yeah, NASDA TWNP is
• 0:54
  Speaker 2: their symbol. All right, good stuff. So what initially you've
• 0:57
  Speaker 2: been there for a little while, But what initially drew
• 0:59
  Speaker 2: you to Twin Peaks.
• 1:00
  Speaker 1: Well, I had about a two decade career at Hooters.
• 1:03
  Speaker 1: I worked for Hooters of America and this new brand
• 1:09
  Speaker 1: came up and was stealing some share, and they're a
• 1:12
  Speaker 1: pretty cool brand, and I was intrigued by him, and
• 1:16
  Speaker 1: so twenty eleven, myself and a couple of my partners
• 1:19
  Speaker 1: at Hooters left and bought a six state development agreement
• 1:24
  Speaker 1: in twenty eleven and there was fourteen stores, So we
• 1:27
  Speaker 1: did take a leap of faith. We felt in our
• 1:30
  Speaker 1: gut it was a great brand that could really grow,
• 1:34
  Speaker 1: and we left Hooters. It was probably four hundred and
• 1:37
  Speaker 1: thirty units, just under a billion in sales, and so
• 1:41
  Speaker 1: we jumped in and so we I think our first
• 1:45
  Speaker 1: door we be in July of twenty twelve, which was
• 1:48
  Speaker 1: number twenty two in buck Ed, Georgia. So we've been
• 1:52
  Speaker 1: blessed to see the brand from twenty eleven till today.
• 1:55
  Speaker 1: So I've been a part of some former fashion of
• 1:58
  Speaker 1: hotter At units being opened and look forward to the
• 2:00
  Speaker 1: next hundred. It's going to be great.
• 2:02
  Speaker 2: Yeah, you made a could bet back then.
• 2:05
  Speaker 1: I did. I should have been in Vegas that day.
• 2:09
  Speaker 3: Right, throw the dice right early retirement. I would know
• 2:12
  Speaker 3: what to do with myself as retired. For you couldn't
• 2:15
  Speaker 3: retire you're way too young. What's the day parts split?
• 2:18
  Speaker 3: And what percentage of your sales are from alcohol?
• 2:21
  Speaker 1: Food? Is fifty two percent liquor, beer, wines, forty eight
• 2:26
  Speaker 1: day part, approximately thirty eight percent lunch the rest of
• 2:30
  Speaker 1: the week dinner. Now that dinner portion eleven of it's
• 2:33
  Speaker 1: late night. So nice, nice spread of the three segments.
• 2:37
  Speaker 1: But you know we're running about a sixty forty dinner
• 2:39
  Speaker 1: to lunch, but dinner carries further out.
• 2:41
  Speaker 2: One hundred and seventy two restaurants at the end of
• 2:44
  Speaker 2: three Q seventy four US franchise, seven international franchise, thirty
• 2:48
  Speaker 2: three US company owned, and there's fifty eight company owned
• 2:52
  Speaker 2: Smoky Bones. Per your release, you expect to convert about
• 2:57
  Speaker 2: half of the Smoky Bones restaurants. A twin peaks how
• 2:59
  Speaker 2: much well the conversion's costs versus building a new unit
• 3:02
  Speaker 2: from scratch.
• 3:04
  Speaker 1: Yeah, you know, when I look at our units, out
• 3:06
  Speaker 1: of one hundred and fourteen, twin peaks, ninety of them
• 3:10
  Speaker 1: or second generation. So myself, our corporate development, and our
• 3:14
  Speaker 1: franchise partners are used to doing second generation. We have
• 3:17
  Speaker 1: some great ground ups. So we you know, we saw
• 3:21
  Speaker 1: that as an opportunity when Fat Brands bought Smokey Bones
• 3:23
  Speaker 1: is a real estate play. We ran it through our
• 3:26
  Speaker 1: real estate platform and about thirty of them made very
• 3:30
  Speaker 1: scored very well for Twin Peaks. So we did our
• 3:33
  Speaker 1: first one in Lakeland, Florida. It was doing about three
• 3:35
  Speaker 1: million for Smokey Bones. We opened it in late September.
• 3:40
  Speaker 1: The sales are run rate and at about eight point
• 3:42
  Speaker 1: three million, so quite a bit of a difference. We
• 3:45
  Speaker 1: put about four point two million in it between leasehold
• 3:48
  Speaker 1: improvements in FF and E some good syentergies we were
• 3:51
  Speaker 1: able to pull out of the building. You know, you
• 3:52
  Speaker 1: get a lot of good things out of second generation.
• 3:55
  Speaker 1: Every second generation building gives you something different. But the
• 3:58
  Speaker 1: store itself is great footprint, really doing well, great addition
• 4:03
  Speaker 1: to the central Florida market. And we're finalizing our second
• 4:07
  Speaker 1: conversion in brandon be sometime in mid February. Okay, cool, Yeah,
• 4:12
  Speaker 1: that was a great strategy for Cava. How big are
• 4:15
  Speaker 1: the restaurants They average about seven thousand to eight thousand
• 4:20
  Speaker 1: square feet. I have units anywhere from sixty five hundred
• 4:23
  Speaker 1: to fourteen thousand in the in our Twin Peaks portfolio,
• 4:27
  Speaker 1: so seven you know, our sweet Spot prototypes about eighty
• 4:30
  Speaker 1: two hundred, so it works just fine. It's a nice
• 4:33
  Speaker 1: thing about second generation. You can have all kinds of
• 4:35
  Speaker 1: different footprints and floor plans. They all have the same DNA,
• 4:40
  Speaker 1: but they have different you know, lodge effects. So it's
• 4:42
  Speaker 1: pretty cool. You get your own local lodge. Lakeland will
• 4:45
  Speaker 1: be different than Brandon, and Brandon will be different than Cassemi,
• 4:48
  Speaker 1: and you know, they all have their own special you know,
• 4:51
  Speaker 1: local lips about it. That's cool.
• 4:54
  Speaker 2: Is it changed strong in Florida? And are there any
• 4:57
  Speaker 2: other states where it's strong geographically?
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  Speaker 1: Virginia for Smoking Bones, that is, for twin Peaks, Well,
• 5:05
  Speaker 1: we're in Dallas for starters. Dallas is quite strong. Texas
• 5:10
  Speaker 1: we have about thirty four stores. Florida we have fifteen,
• 5:13
  Speaker 1: and we're still growing quite a bit. Those are probably
• 5:15
  Speaker 1: the most concentrated. Arizona does really well. You know, the
• 5:18
  Speaker 1: brand's so portable. We see the fanfare whether it's Dallas, Miami, Lakeland, Florida, Columbus, Columbus, Ohio,
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  Speaker 1: Louisville still has that same fact, same volume. We don't
• 5:31
  Speaker 1: see a volume letof because of different regions warm weather,
• 5:34
  Speaker 1: cold weather. And we have seven down of Mexico. Okay, Cole,
• 5:39
  Speaker 1: what's the right number of company owned restaurants for you?
• 5:42
  Speaker 1: We're in a seventy thirty mix between franchise and corporate.
• 5:46
  Speaker 1: We think our sweet spot seventy five to twenty five,
• 5:48
  Speaker 1: which is very doable. We have a lot of good
• 5:51
  Speaker 1: franchise partners. We have about one hundred development franchise commitments
• 5:57
  Speaker 1: from our franchise partners already, so very doable.
• 5:59
  Speaker 2: Number okay cool, excluding excluding the Smokey Bones conversions. How
• 6:04
  Speaker 2: many units do you expect to open in twenty five
• 6:06
  Speaker 2: and are you having any issues finding new sites?
• 6:09
  Speaker 1: Well, that was one of the reasons we picked up
• 6:11
  Speaker 1: the Smoky Bones. Control in those sites gave a nice
• 6:14
  Speaker 1: short term path. So with the Smoky Bones because we'll
• 6:19
  Speaker 1: do probably five or six this year conversions between ourselves
• 6:24
  Speaker 1: and our franchisees. We looked to do two to four
• 6:26
  Speaker 1: corporate stores ten to twelve franchise stores for this year.
• 6:30
  Speaker 1: Last year we got nine open total. For me, it
• 6:33
  Speaker 1: was a little slow last year, so we looked for
• 6:34
  Speaker 1: hopefully things picked up a little bit with that. You know,
• 6:37
  Speaker 1: a lot of staffing issues and with the perameters and
• 6:41
  Speaker 1: inspectors and just being short staffed.
• 6:43
  Speaker 2: Gosha, what percentage of new units are opened by existing
• 6:45
  Speaker 2: franchisees coming up?
• 6:48
  Speaker 1: Uh?
• 6:48
  Speaker 2: Yeah, Well, ten to twelve will be franchisees. Two to
• 6:51
  Speaker 2: four will be corporate existing or from out of the system.
• 6:55
  Speaker 1: That's that'll be existing, that's in the existing system. So
• 6:58
  Speaker 1: we still you know, we have a friend development team
• 7:00
  Speaker 1: that's selling new territories. They're actually out in California doing
• 7:04
  Speaker 1: our real estate tour right now with us some prospects.
• 7:07
  Speaker 1: We just signed somebody out up for the Fargo, South Dakota,
• 7:10
  Speaker 1: Montana market. We have another group looking out of Canada.
• 7:14
  Speaker 1: So franchise development side active on finding new groups and
• 7:19
  Speaker 1: then the existing groups are actively built.
• 7:22
  Speaker 2: Okay, great new stores. Do they have big honeymoon periods
• 7:26
  Speaker 2: or they tend.
• 7:26
  Speaker 1: To build to your target AUV? You know, it depends.
• 7:29
  Speaker 1: It depends on if you're in a mature market. I've
• 7:32
  Speaker 1: had stores even here in Dallas that start out at
• 7:35
  Speaker 1: five five six, they're at nine million now. So we
• 7:40
  Speaker 1: have dural MP in last year it's run rating at
• 7:43
  Speaker 1: fourteen million. And then you have some newer markets where
• 7:47
  Speaker 1: the development's coming and so you get there before the
• 7:49
  Speaker 1: development and the mature markets just sell right into their
• 7:52
  Speaker 1: average AUV quickly. So all depends on the market. We
• 7:56
  Speaker 1: see a big fanfare when we open a new store
• 7:58
  Speaker 1: in the DMA by itself, because it's just they haven't
• 8:01
  Speaker 1: seen anything like it.
• 8:02
  Speaker 2: Okay, And I noticed in the in your disclosures, current
• 8:05
  Speaker 2: AAV is about five two to five three million versus
• 8:09
  Speaker 2: the target of six point five for new builds. So
• 8:12
  Speaker 2: what's the difference there? Are you building bigger units, are
• 8:15
  Speaker 2: you modeling strong same sort of sales growth from the
• 8:17
  Speaker 2: existing sore base and that we'll get to that six '
• 8:21
  Speaker 2: five or is there something else that kind of explained
• 8:23
  Speaker 2: that gap?
• 8:24
  Speaker 1: Yeah, the difference is you have some legacy stores. They
• 8:26
  Speaker 1: are lower avs. You know, they started off in the
• 8:28
  Speaker 1: early day Z five six oh seven. When we started
• 8:32
  Speaker 1: building eleven, we started exploring with some bigger buildings, bigger footprints,
• 8:37
  Speaker 1: two bars, patios. In sixteen seventeen we really started finding
• 8:42
  Speaker 1: tuning what we thought our guests needed and wanted. With
• 8:45
  Speaker 1: our design team, we employed our real estate strategy platform
• 8:50
  Speaker 1: E Site and that really helped us take our consumer
• 8:53
  Speaker 1: demographics and map out where we should be putting our
• 8:56
  Speaker 1: stores based off the white space available. So it really
• 8:58
  Speaker 1: helped us in our targeting. You know, the early days,
• 9:01
  Speaker 1: you're not targeting because you don't have you don't have
• 9:02
  Speaker 1: a base to target off of. You kind of going
• 9:04
  Speaker 1: with your gut, and as you build that demographic up,
• 9:08
  Speaker 1: you really know what your user is. So when you
• 9:11
  Speaker 1: go to new space, as you find that user and
• 9:13
  Speaker 1: that platform really helps you do that. So as we
• 9:16
  Speaker 1: continue to fine tune that from sixteen seventeen, we really
• 9:19
  Speaker 1: fine tune the brand, the model, the offering, and then
• 9:23
  Speaker 1: the real estate strategy too. And then we just all
• 9:26
  Speaker 1: the new openings have been very strong. So it's actually
• 9:30
  Speaker 1: the new all the new openings I say new openings.
• 9:32
  Speaker 1: You know, from twenty twenty one twenty two, I have
• 9:34
  Speaker 1: been dragging that AUV up and you know some of
• 9:37
  Speaker 1: those early legacy stores as those leases expire, will shift
• 9:40
  Speaker 1: markets and go for a different sized building.
• 9:43
  Speaker 2: Yeah, six point five millions a strong AUV. Is there
• 9:47
  Speaker 2: any other unit economic data that you'd like to share?
• 9:50
  Speaker 1: You know, we target sixteen percent four while margin. The
• 9:53
  Speaker 1: biggest thing is, you know, we we want to concentrate
• 9:56
  Speaker 1: on the unit economics. So conversions give you about a
• 10:00
  Speaker 1: twenty eight percent cash on cash return, and then if
• 10:02
  Speaker 1: you do a new build where you're buying the dirt
• 10:04
  Speaker 1: and doing a sale lease back, you can get upboards
• 10:07
  Speaker 1: to thirty seven percent cash on cash return because you
• 10:09
  Speaker 1: can get to take those sale lease back proceeds. So
• 10:12
  Speaker 1: the boat strategies were great. Those are great unit economics
• 10:16
  Speaker 1: for US. Six ' five we think is a reasonable number.
• 10:20
  Speaker 1: You know, as I said, Lakeland's trailing at eight point
• 10:22
  Speaker 1: three million Lakeland, Florida. That's not a huge metropolis. And
• 10:27
  Speaker 1: even like the you know, the Derials of the world
• 10:29
  Speaker 1: that opened last year, like I said, we're thirteen fourteen million.
• 10:32
  Speaker 1: So we think six five is a modest number to
• 10:34
  Speaker 1: go for because our AUV has been driving up with
• 10:37
  Speaker 1: every new opening.
• 10:38
  Speaker 2: Yeah, so same store sales are strong versus your peers
• 10:43
  Speaker 2: versus twenty nineteen, but there were down a little more
• 10:45
  Speaker 2: than the casual index in twenty three. Why do you
• 10:49
  Speaker 2: think Twin Peaks was hit harder than other chains last year?
• 10:52
  Speaker 1: Well, if you look at our same store sales, double
• 10:56
  Speaker 1: digit stacked. Eventually you stop stacking and it's time to
• 10:59
  Speaker 1: open new I mean, And so it doesn't what doesn't
• 11:03
  Speaker 1: take an account if you're doing a market and I
• 11:05
  Speaker 1: have a market in San Antonio three stores for the
• 11:08
  Speaker 1: longest time, and we added a fourth, you pick up
• 11:11
  Speaker 1: six million in total sales, but you lose five hundred
• 11:14
  Speaker 1: thousand out of one of the other stores. So the
• 11:18
  Speaker 1: six million you don't get accounted for in same stores
• 11:20
  Speaker 1: because it's in you know, it's not in that eighteen
• 11:23
  Speaker 1: month period where you start comping, but that the guy
• 11:26
  Speaker 1: you lost five hundred, he loses the comp So, you know,
• 11:29
  Speaker 1: we look at overall market share. Same sources is certainly
• 11:33
  Speaker 1: an effective tool to make sure the brand's still relevant.
• 11:36
  Speaker 1: It's one of the reasons we use black Box to
• 11:38
  Speaker 1: make sure we're keeping our ear to the wall with
• 11:40
  Speaker 1: what our guests are saying about every store. We like
• 11:42
  Speaker 1: to see what the stores are doing per their zip code,
• 11:46
  Speaker 1: and that's black Box is able to give us that.
• 11:49
  Speaker 1: You know, if if our stores are trending high or
• 11:51
  Speaker 1: lower than zip code, we were able to take action
• 11:53
  Speaker 1: either way. The social sentiment's big to us because it
• 11:57
  Speaker 1: really truly says what our guests are talking about with us. So,
• 12:00
  Speaker 1: you know, I think that's one of the reasons you
• 12:02
  Speaker 1: just you get double digit same store, same store, same store,
• 12:04
  Speaker 1: Eventually you stop comping, and as I said, you have
• 12:07
  Speaker 1: to build no store.
• 12:08
  Speaker 2: Yeah, you know, and let's let's stick to that black
• 12:12
  Speaker 2: Box intelligence point. When we did a panel together back
• 12:15
  Speaker 2: in twenty three. I was impressed by how data driven
• 12:18
  Speaker 2: you are from people I know in the industry. You know,
• 12:21
  Speaker 2: they say you're very dialed into the numbers and run
• 12:24
  Speaker 2: your business accordingly. Can you talk about how you're using
• 12:28
  Speaker 2: that data, particularly to analyze store performance, bonus out your
• 12:31
  Speaker 2: employees and stuff like that.
• 12:33
  Speaker 1: Yeah, you know, we use black Box for a lot
• 12:36
  Speaker 1: of different reasons, whether it's sales traffic, even from an
• 12:40
  Speaker 1: employee standpoint, making sure we're in the right pay categories
• 12:43
  Speaker 1: by position. That social sentiment side helps tell the rest
• 12:47
  Speaker 1: of the story. And even like I said earlier, tracking
• 12:50
  Speaker 1: your sales by zip code which really helpful because you
• 12:54
  Speaker 1: look at your sales versus DFW. Well, DFW is quite
• 12:56
  Speaker 1: large or Chicago quite large, so I can track my
• 12:59
  Speaker 1: store in I'll go by a zip code. Then I'm
• 13:01
  Speaker 1: kind of in the game because obviously for geographic region
• 13:05
  Speaker 1: and so having the sales, the traffic, and the social
• 13:08
  Speaker 1: side of it gives the full story. You could be
• 13:10
  Speaker 1: up in sales, but your zip codes up even higher,
• 13:15
  Speaker 1: so maybe you're not exceeding what you should be. You
• 13:17
  Speaker 1: could be down in sales, but the zip codes tremendously down,
• 13:20
  Speaker 1: and so you're you're battling and you're knocking it out
• 13:23
  Speaker 1: based off whatever reasons causing that and the other reason.
• 13:26
  Speaker 1: You look at sales and traffic and then you compare
• 13:29
  Speaker 1: it to the social side of it, and we get
• 13:31
  Speaker 1: a daily, weekly, monthly, quarterly feed. We do a quarterly
• 13:35
  Speaker 1: recap with black Box, kind of going over the whole
• 13:38
  Speaker 1: analytics of of everything they're seeing with us and out there.
• 13:42
  Speaker 1: But the social side tells a story too. And you
• 13:45
  Speaker 1: could be doing really well in sales because the traffic's
• 13:48
  Speaker 1: just so high, so dense, but your but your guests
• 13:52
  Speaker 1: are given negative comments. So let's let's us focus even
• 13:55
  Speaker 1: to the point of it might not be affecting your sales,
• 13:57
  Speaker 1: but somebody could be saying, your frieser cols, your frier coal. Hey,
• 14:00
  Speaker 1: this month, we need to focus on fries. Let's make
• 14:02
  Speaker 1: sure we're serving hot, fresh fries and we're not dragging fries.
• 14:05
  Speaker 1: So it does dial us into certain elements of the
• 14:08
  Speaker 1: brand or the business or the community if we're doing
• 14:11
  Speaker 1: better than the other side. So it just gives us
• 14:13
  Speaker 1: a better parallel platform. And we use data word data junkies.
• 14:19
  Speaker 1: We try not to do paralysis by analysis, but we
• 14:22
  Speaker 1: do take that data with us to the field to
• 14:23
  Speaker 1: help us understand what's being said. No matter where it's at,
• 14:26
  Speaker 1: whether it's black Box or the east Site platform we
• 14:29
  Speaker 1: use for our real estate, we have a lot of
• 14:32
  Speaker 1: different data elements.
• 14:33
  Speaker 2: Yeah, it sounds like you're leaning on it basically as
• 14:36
  Speaker 2: a leading indicator, right that it could show moves and
• 14:39
  Speaker 2: seam sourselves.
• 14:39
  Speaker 1: But before they still have to be in the field,
• 14:41
  Speaker 1: whether it's looking for sites or being in a restaurant.
• 14:44
  Speaker 1: You can't just look at the data and say, oh,
• 14:46
  Speaker 1: this is what's happened. You still need to go. And
• 14:49
  Speaker 1: my emphasis to our team is you've got to be
• 14:52
  Speaker 1: in the field. Four walls are where it's happened. This
• 14:56
  Speaker 1: office we're sitting in today, it does not make any money.
• 15:00
  Speaker 1: It costs money. The fuss make the money, and my
• 15:04
  Speaker 1: whole support team and executive team has to be driven
• 15:08
  Speaker 1: to the field. We want them part of the field
• 15:10
  Speaker 1: for sure.
• 15:11
  Speaker 2: How are you looking to drive same star sales growth
• 15:13
  Speaker 2: in twenty five.
• 15:14
  Speaker 1: Well, we have a built in marketing calendar called Sports
• 15:19
  Speaker 1: which is really helpful and we're able to take that
• 15:22
  Speaker 1: experience with the Twin Peaks Girl our kitchen and our bar,
• 15:26
  Speaker 1: and that is our mechanism driven same shot sales, just
• 15:30
  Speaker 1: the overall memorable experience event that happens in our stores.
• 15:35
  Speaker 1: We want to stay really dialed in on food. We
• 15:37
  Speaker 1: want to keep a pricing structure that's in bar belt strategy.
• 15:41
  Speaker 1: We want to be able to something on an affordable level.
• 15:44
  Speaker 1: If you're working off a lower budget, you want to
• 15:46
  Speaker 1: splurge on yourself. There's a higher end. We don't want
• 15:49
  Speaker 1: to take big, big price jumps. That's not that's not
• 15:51
  Speaker 1: how we're going to go. I think the consumer's tired
• 15:54
  Speaker 1: of price jumps, and we've been fortunate enough not to
• 15:57
  Speaker 1: do them. We've done small two to three percent over
• 15:59
  Speaker 1: the you know, over traarly twelve months, keeping up with
• 16:02
  Speaker 1: some minimum wage increases. But we try not to take
• 16:05
  Speaker 1: those big five six percent jumps, which some people do.
• 16:08
  Speaker 1: So we just execute executing, understanding the sports calendar and
• 16:12
  Speaker 1: making sure that sports day is so overwhelming to you
• 16:16
  Speaker 1: in a good way you come back just for lunch
• 16:19
  Speaker 1: on Monday.
• 16:20
  Speaker 2: Yeah, I'm sure the expanding sports calendar is helping, right,
• 16:23
  Speaker 2: the bigger college football playoff, right, and then we're seeing
• 16:28
  Speaker 2: new sports Formula one, right, yeah.
• 16:30
  Speaker 1: I mean the seasonality of sports used to you know,
• 16:34
  Speaker 1: you're really in season, you're out of season or in
• 16:36
  Speaker 1: the season. It's really stretched. And even NFL they started
• 16:40
  Speaker 1: dabbling into some Friday games, some different day games that
• 16:45
  Speaker 1: you weren't used to. Heavy. We're heavy into soccer Champions League,
• 16:50
  Speaker 1: Gold Cups, South America Cups, World Cup obviously is coming
• 16:53
  Speaker 1: to town. We lean in the Premier League, La Liga,
• 16:57
  Speaker 1: all the different and those are nice time zones too,
• 17:00
  Speaker 1: because a lot of those games are you know, two
• 17:02
  Speaker 1: three o'clock afternoons, so it really plays well with stretching
• 17:06
  Speaker 1: the calendar out. NBA is just big, you know, we
• 17:10
  Speaker 1: really you know, it's a long season, and then from
• 17:13
  Speaker 1: April to June, it's just playoff mania. You know, you're
• 17:16
  Speaker 1: you get rid of you go college NFL College playoffs,
• 17:22
  Speaker 1: NFL Playoffs, Super Bowl, roll into the February and you're
• 17:27
  Speaker 1: into conference basketball, March madness, playoff implication, NBA, NBA playoffs,
• 17:35
  Speaker 1: NHL playoffs. Through June, there's probably a little lull, but
• 17:40
  Speaker 1: then there's always a lot of summer, a lot of
• 17:42
  Speaker 1: summer soccer that happens, and those those cups are happening
• 17:45
  Speaker 1: during then the you know, European Cups, South American Cups,
• 17:47
  Speaker 1: all those are happening a lot of the summertimes. Then
• 17:50
  Speaker 1: you roll in Fantasy Draft and you're back in football,
• 17:52
  Speaker 1: so it stretches. Yeah, I hope the college playoffs go
• 17:56
  Speaker 1: to thirty two teams. Just keep adding game. I'm sure
• 18:01
  Speaker 1: that was big business man with UFC, big partner of ours,
• 18:04
  Speaker 1: and you know they're they have great material as pay
• 18:07
  Speaker 1: per view, but then they have a material that's on
• 18:10
  Speaker 1: ESPN Plus that we're playing, and they have a lot
• 18:11
  Speaker 1: of different elements there. There's always boxing that lay in there,
• 18:15
  Speaker 1: so there's there's always In marketing, one of marketing's jobs
• 18:20
  Speaker 1: are really to keep up the calendar and all right,
• 18:21
  Speaker 1: we have this big event coming on Friday. What are
• 18:24
  Speaker 1: we gonna do to accent that event besides just have
• 18:26
  Speaker 1: it off. What's the beer special or the drink special
• 18:29
  Speaker 1: or what you know, what what element are we gonna
• 18:31
  Speaker 1: put in there to make that just a notch above
• 18:33
  Speaker 1: everybody else. It gives our operators a chance to plan
• 18:36
  Speaker 1: because you see the calendar, so it's not like a
• 18:39
  Speaker 1: bus is pulling in and you're unprepared. You know they're
• 18:42
  Speaker 1: gonna you know, you're gonna be crowded, so let's overstaff
• 18:45
  Speaker 1: and make sure that experience is incredible. Great.
• 18:49
  Speaker 2: Are there any changes to the marketing planning making the
• 18:51
  Speaker 2: share now? We're staying We're staying focused on you know,
• 18:55
  Speaker 2: local store marketing. We like that one three five mile radius.
• 18:59
  Speaker 1: We think it's important to be a part of the
• 19:01
  Speaker 1: local lodge versus some national commercial that maybe doesn't have
• 19:05
  Speaker 1: the impact. And you know, our footprint doesn't allow for
• 19:08
  Speaker 1: a national commercial, so it'd be kind of a waste,
• 19:10
  Speaker 1: and we just think our money's better spent at the
• 19:13
  Speaker 1: local DMA for sure. So we're going to continue to
• 19:15
  Speaker 1: push that one three five mile radius. Local sports talks,
• 19:20
  Speaker 1: local businesses, festivals, local teams, you know, sponsorships that way,
• 19:26
  Speaker 1: really just driving that traffic in. You know, everybody's like
• 19:29
  Speaker 1: when you do a commercial, Well, when everybody in your
• 19:32
  Speaker 1: one three five mile radius has tried you and wants
• 19:34
  Speaker 1: to come back to you, we'll start thinking about commercial
• 19:36
  Speaker 1: because there's a lot of bodies between one three and
• 19:38
  Speaker 1: five and our building should be a marketing tactic. You're
• 19:42
  Speaker 1: picking good sites with a lot of good traffic driving
• 19:45
  Speaker 1: by you, and your building is beautiful. That's going to
• 19:48
  Speaker 1: drive people in. That's a billboard itself for sure. If
• 19:52
  Speaker 1: you need a billboard, you probably pick the wrong site. Sometimes,
• 19:57
  Speaker 1: no doubt you touched on it a little bit.
• 20:00
  Speaker 2: It's like you're not taking too much pricing. I think
• 20:01
  Speaker 2: that's the smart play in twenty twenty five. You know
• 20:05
  Speaker 2: how much inflation do you expect, and how much price
• 20:08
  Speaker 2: are you willing to share?
• 20:09
  Speaker 1: How much creature between two and three percent, and really
• 20:14
  Speaker 1: just to keep up at the minimum wage. We've locked
• 20:15
  Speaker 1: a lot of our proteins in so we know what
• 20:18
  Speaker 1: our cost effects are there. We ate some margin last
• 20:22
  Speaker 1: year and we went after the margin in other categories,
• 20:26
  Speaker 1: but we ate some margin. And the poultry. Poultry is
• 20:28
  Speaker 1: extremely high last year, five year high. But we know
• 20:31
  Speaker 1: it's sick. It moves, you know. We track in month
• 20:34
  Speaker 1: to month, year to year, and if you took price
• 20:36
  Speaker 1: every time we went to an all time high, you
• 20:38
  Speaker 1: would outprice yourself. So you just have to be cost
• 20:42
  Speaker 1: effective in other areas and eat some of that costs.
• 20:45
  Speaker 2: So yeah, our in our research, some of the chains
• 20:48
  Speaker 2: like Texas road Has and wing Stuff that have the
• 20:50
  Speaker 2: highest cogs are generating the most traffic, right, they're offering
• 20:53
  Speaker 2: the most.
• 20:53
  Speaker 1: Value on the plate. Yeah, we we're pretty pleased with our.
• 20:57
  Speaker 2: Cog good and you know it sounds like you're going
• 21:01
  Speaker 2: to spend some of your cash on building three new stores.
• 21:05
  Speaker 2: But i'd imagine you generate a lot of cash. Can
• 21:08
  Speaker 2: you talk about, you know, how you plan to use
• 21:10
  Speaker 2: that excess cash this yere?
• 21:12
  Speaker 4: Uh.
• 21:12
  Speaker 1: You know, we'll delever, delver some of our debt. And
• 21:15
  Speaker 1: that's one of the reasons you know we're moving towards
• 21:17
  Speaker 1: a spin off, is for investors to look at us
• 21:20
  Speaker 1: as a standalone portfolio and understand this brand, give us
• 21:23
  Speaker 1: focus on development. We certainly want development equity there so
• 21:27
  Speaker 1: we can continue to grow the footprint, and then we'll
• 21:30
  Speaker 1: deliver some of our debt. All right, good stuff, So
• 21:33
  Speaker 1: what's your favorite menu item? Liquid would be something from
• 21:36
  Speaker 1: Kentucky on a clear ice ball and I spent you know,
• 21:40
  Speaker 1: love love me some Blantons and weller, I can't go
• 21:44
  Speaker 1: wrong with any of those. Nothing wrong with us. A
• 21:47
  Speaker 1: good micaltree there the Corona. Food wise, love our flatbreads,
• 21:54
  Speaker 1: smoked wings. We have our own smoker programs. We smoke
• 21:57
  Speaker 1: most we smoke briskets, wings, chicken thighs or so. Once
• 22:03
  Speaker 1: again that scratch kitchen. Our kitchens are great. Charg real
• 22:06
  Speaker 1: flat top fryars, convection of it and smokers really gives
• 22:10
  Speaker 1: us a lot of flexibility to make that menu flexible.
• 22:13
  Speaker 1: But those are probably like go tos, flatbreads and smoke
• 22:15
  Speaker 1: wings really good go too, or hand cut steak. We
• 22:18
  Speaker 1: have handcut in New York strips.
• 22:20
  Speaker 2: All right, good stuff. Yeah, the wings are great. I'm
• 22:22
  Speaker 2: gonna have to try those smoke chicken thighs, man, it'll
• 22:24
  Speaker 2: sound pretty good too.
• 22:25
  Speaker 1: Yeah, we smoke our own chicken thighs, and then we
• 22:27
  Speaker 1: utilize them in our chicken nachos, we utilize them in
• 22:31
  Speaker 1: the case of das, we utilize them in our green
• 22:34
  Speaker 1: chili chicken soup. So yeah, we try to really make
• 22:38
  Speaker 1: sure our pantrees has good flow through. So our chef's great,
• 22:42
  Speaker 1: he's able to look at recipe items and make sure
• 22:45
  Speaker 1: we maximize the pantry item out of it. So we
• 22:48
  Speaker 1: don't have just one item sitting there for one recipe
• 22:50
  Speaker 1: because we know how that goes either run out or
• 22:52
  Speaker 1: it doesn't make it. And so if you have good
• 22:55
  Speaker 1: flow through on your inventory, that helps up.
• 22:57
  Speaker 2: All right, good stuff, Thanks for doing this. Where can
• 22:59
  Speaker 2: the audience go to find their nearest twin Peaks and
• 23:01
  Speaker 2: what social media program should we follow you on?
• 23:05
  Speaker 1: Well, at twin peaks dot com, that's the best for
• 23:07
  Speaker 1: following us. We have great Instagram. Every store has its
• 23:10
  Speaker 1: own Facebook Instagram really try to stay localized. So you
• 23:13
  Speaker 1: just click on your local Instagram twin Peaks, it'll pop
• 23:16
  Speaker 1: up great feeds, local store, depends on where you're at.
• 23:20
  Speaker 1: The next new one will be Brandon, Tampa, Florida.
• 23:25
  Speaker 2: Okay, cool man, Yeah, I have to follow you on Instagram.
• 23:29
  Speaker 1: Yeah, good luck. Man.
• 23:30
  Speaker 2: This is going to be a fun one to watch,
• 23:32
  Speaker 2: a little too small for me to cover, but I'll
• 23:35
  Speaker 2: be watching closely.
• 23:36
  Speaker 1: Man. Are you based out of I'm in New Jersey.
• 23:39
  Speaker 1: I'm working on it, working on Pennsylvania right now. Now. Okay, yeah,
• 23:41
  Speaker 1: I've listen.
• 23:42
  Speaker 2: I've been Scottsdale, Austin, Southern Florida, so I've been to
• 23:48
  Speaker 2: a few. I'll try to get closer to Are you
• 23:50
  Speaker 2: a Giants fan Jets fan? Well, I'm a Raiders fan.
• 23:55
  Speaker 2: I'm actually a Raiders fan. I was born into this
• 23:56
  Speaker 2: life of disappointment. They won the Super Bowl the day
• 23:58
  Speaker 2: I was born, and I grew up wanting to be
• 24:00
  Speaker 2: a Raider.
• 24:01
  Speaker 4: Now you got TV twelve leading the team. He's Mike.
• 24:05
  Speaker 4: I'm hoping for uh an improvement for sure. You might
• 24:09
  Speaker 4: get the Sanders kid. Need could be your QP.
• 24:13
  Speaker 1: It does a lot of rumors swirling around man. Yeah,
• 24:16
  Speaker 1: we'll see. It's always fun to watch and keep up
• 24:18
  Speaker 1: with it. Yeah. Who's your team? Cowboys Living Down Okay? Yeah?
• 24:23
  Speaker 2: Yeah, yeah, yeah for sure man. Uh you know, there's
• 24:26
  Speaker 2: a lot of Cowboys fans here and everywhere.
• 24:28
  Speaker 1: But actually my team is wherever, wherever a store is,
• 24:32
  Speaker 1: that's my team. I feel like a bookie. Then when
• 24:35
  Speaker 1: I'm watching a game and my family's like, who do
• 24:37
  Speaker 1: you want? Like, I want this, white want that. We
• 24:39
  Speaker 1: have three stories. Brother.
• 24:42
  Speaker 2: Yeah, thanks again, and I want to thank the audience
• 24:45
  Speaker 2: for tuning into. If you like the episode, please share
• 24:47
  Speaker 2: with your friends and colleagues. Check back soon for a
• 24:50
  Speaker 2: discussion with Kyle Kavanaugh, the founder at Maine and May