Sweetgreen, Inc. ($SG)

Good afternoon, everyone. It's a pleasure to host Sweetgreens Co-Founder and CEO, Jonathan Neman; and CFO, Jamie McConnell for our last session for this afternoon and also for the conference.

Jonathan, there's been a lot going on with the company right now. I'd like to start off with the Sweet Growth Transformation Plan. What are the top priorities this year? And as both customers and investors, like what should we be looking forward to?

Rahul, great to see you. Great to be here. So as we mentioned, we're going through our Sweet Growth Transformation Plan. We're about a quarter in, and we're focused on a few critical things. First, it's around menu innovation around this idea of expanding occasions and broadening our demographics around people who we want to welcome into the brand. The main focus there is our launch of wraps. So we know that there's a huge addressable market that is looking for more portable options, something hearty, delicious and still nutritious. And so it's something we've been working on for a couple of years now. We've now entered our final stage of the stage gate where we are in 68 restaurants across the country, and we're seeing some really encouraging results. We -- one of the things we are trying to address with wraps not only is new occasions, but is also around price value and entry points into the brand. So the wraps start below $11. All wraps are sub-$15. We're testing 3 wraps right now. We may go to market with more than that. We're -- but wraps, again, huge focus. We're seeing really good success so far. We're seeing incidents grow almost every day. We're seeing some growth in incidents, amazing organic customer feedback, very little marketing done, but overall, very pleased, and we think that will be a big sales catalyst for us. Second major focus area is on price value and architecture. How do we -- and there's a lot in there. We've done a lot over the past year to give customers more around food, whether it be more protein portion and communicating more around what we do that is different, whether that be our scratch cooking or our local sourcing. But there's a lot of opportunity we have in our pricing architecture. So there's a few areas that we're focused there. One is our create-your-own bowls pricing architecture, which today makes up about 25% of our menu. We are going to be testing a simplified pricing structure, kind of more an all-in pricing model for that, which will go into test later this year through our stage-gating process. The second opportunity that we're going to exploring there is more around a barbell pricing strategy. What we've seen is there's many customers who are want to spend more at Sweetgreen, but we're missing that entry point insight into the brand. And we see many customers when they enter the brand spending sub-$15, their retention is very, very high. So we see a huge opportunity and more of that barbell pricing on our core menu. So look forward to testing that, tweaking it and rolling it out later this year. Third major priority is around operational excellence. A few things underneath that. One is what we call Rush Ready Before Peak for throughput. We have a lot of opportunities to continue to improve our throughput. That means being rush ready with mise en place, staffed properly, but also moving from our one-to-one service model to our assembly line service model, which we've seen does increase throughput. Second thing underneath that is around food quality. It's really so much of what the Sweetgreen brand is built off of. So we're really kind of looking at the entire system and how we can make the food really -- whether a lot of it is from a supply chain perspective, but most of it happens within the 4 walls of when we cook things and really making sure we're prepping less more often so the food is fresh. And then the last piece around the operational excellence is around hospitality. We really want the Sweetgreen experience within the 4 walls to have what we call the sweet touch, that feeling you walk away that creates that word of mouth where you tell your friends and you come back, and we have really good ways of measuring that today. So that's the third focus. The fourth major part of our -- of the transformation plan is going to be a lot more investment in the brand. Sweetgreen from the very early days was not just a restaurant company, but a lifestyle company, one that spoke and resonated in culture, community, lifestyle, whether it be through collaborations with chefs, fitness, music. And I'd say over the past few years, we've been very -- we've moved most of the marketing to be more kind of conversion growth, lower funnel marketing. So we're resetting our media mix, focusing more on upper funnel brand awareness and really kind of positioning Sweetgreen in the hearts of minds of our consumers as this category of one lifestyle brand. So, so far, as many of you know, we've changed a lot of our leadership team last year. We have some awesome new leaders that have joined us, including Jamie, and we're very excited about this transformation plan taking place.

That's a great summary. I want to dig in a few of those places. One of the big challenges for any company, younger or even older companies to retain -- like younger companies to attract and then retain is the talent. And it starts at C-suite going all the way down to like store managers, head coaches to staff. How is the environment and how is the brand able to attract, retain and train these people? And where is the biggest opportunity today to invest? And when it comes to like employees, what are their biggest like asks, like what do they want more of or less of?

Yes, absolutely. So all of us in the restaurant industry, we know we're more of a people business than a food business, and people are our most important ingredient. And so we are very, very focused on people and culture. I'd say in terms of what -- why people come to Sweetgreen over competitors, first and foremost, it's our mission. They really believe in the brand and the mission that they're coming to Sweetgreen for. Two is we have competitive wages. So whether it be at the head coach level, both competitive wages and bonus, head coaches make -- easily make 6 figures with bonus. And all of our head coaches have equity. So that's another piece of it. As you go throughout the rest of the organization and our team members, not only do we offer competitive wages, eligibility for tips and compelling benefit package, but most importantly, it's a pathway to growth. So very focused on internally developing talent. We were able to develop talent in under 3 years from a team member to a head coach. Our best head coaches are developed internally. As we all know, a stable head coach and a great head coach is really what drives performance. So really focused on that pathway of moving more team members up through head coach, area leader and beyond. Where are some of the opportunities I see. I'd say probably the biggest opportunity for us is to continue to invest in leadership development. I think we've gotten quite good at the technical side of training team members, but I think there's more we can do around teaching them to be great leaders. We're going to -- we're continuing to simplify how we run restaurants, giving them really wonderful systems and tools. But -- and we know we bring -- we really look for rock talent, people that care in the mission are genuinely enthusiastic, are service-oriented, are resilient and then we give them the tools. And so we're investing more and more into the leadership development of our teams, and we think that will be an accelerator of our growth. And we've really started to marry our growth with our people -- our store growth with our people growth much more tightly aligned, and we have a really nice robust pipeline of leaders as we continue to grow.

Perfect. The company has embarked on a big supply chain efficiency exercise that was never probably done at this level of granularity in the past many years. What are some of the addressable low-hanging opportunities? And what are being prioritized this year, if you could share some examples?

So as you mentioned, we did a distribution consolidation last year where we consolidated our -- really no changes to our supply network, more in terms of how we actually distribute and move our product. So we consolidated it from separate distributors from a grocery and produce into a single distributor. It simplifies the workflow inside of the restaurant, so only a single delivery. It also helps us save a lot of money as we scale and will help us bring down our logistics costs over time. So that's been a huge focus. There is a lot we're doing also as it relates to the supply side and making sure we're finding partners that can continue to grow and scale with us and where we can continue to elevate the quality of our food while bringing down the cost, especially as we build out regions. As you all know, much of our supply network is built out regionally. So we do see economies of scale, both nationally but also regionally. So as we continue to build smaller markets that go from 1 or 2 stores to 5 or 6, we see a lot of efficiencies there in bringing down cost of goods.

Perfect. Last week when we discussed, there was a number like around 800 to 1,000 bps of store prep in the labor line. And is that still the case today? Or has it already come down with some of the upstreaming and other efficiencies you have been looking at over time? And what are the top focus areas on this for this year?

Yes. So we've been on a multiyear process really to simplify the experience for our team members in the restaurant, kind of make it so that their work is focused on the most value-add components in the restaurant, things that really matter as it relates to food quality or hospitality. Given what our brand stands for in the quality and freshness, we have to be very, very careful not to take away any of the things that could impact food quality. So we're very disciplined on not all of a sudden having everything come in from a commissary. We do not -- we actually don't have commissaries. However, to your point, there's a lot of opportunity for us to work with value-added partners and bring -- and commercialize more things where we can actually maintain or elevate the quality and create more consistency while removing some of the complexity in the restaurant. So there's a number of things we've done over the past few years, whether that be things like de-stemmed kale or commercialized dressings. There's a lot more to do. So we have a multiyear road map in front of us, whether it be more commercialized dressings, premarinated proteins -- chicken and proteins and a few other things that we're considering. I'll give you just like a little example. Sweet potatoes come in whole, right? So come in whole have to be peeled, chopped and then roasted. There's no quality degradation by actually having them come in peeled and cubed and then roasted in the kitchen. So we will never have them roasted offsite, but we'll have them -- have parts of the prep be simplified. So when it comes in the store, they only focus on the parts that actually really matter from a quality perspective. So again, very, very disciplined, careful. We will test these things carefully. We are currently in the middle of a very intensive labor study to identify where the biggest opportunities are. So we can elevate the quality of our food, move more of our labor towards productive labor and serving the guests and hopefully end up with a better unit economic model with less labor on things that aren't value add while elevating the quality that we do and making it so that it is totally scalable.

Perfect. One of the big challenges during the turnaround is trying to focus on more things, but I think you guys have pretty much streamlined on where the areas will be in this year. When it comes to the menu side of things, there is at the core and then the excitement creating like the LTOs like whatnot. We have heard that the secret is apparently not a secret, like Brinker has just done like a fantastic job in the past 3 years and the focus on the fundamentals and then the core has been like overemphasized and for the right reasons. How are you balancing while going through this exercise that your core is elevated, but at the same time, you're also creating that excitement for the brand and everything else?

Absolutely. We believe that great companies are end companies. We need to continue to invest and elevate the core, the core quality and execution as well as just the core menu and how we can continue to innovate that, but also want to reach more customers and create new occasions. So we built the structure and system to really kind of dual process, parallel path those things. And you'll see this year probably an equal balance of investments in our core as well as attacking some of these new opportunities. I'd say, as it relates to innovation on our menu, this year and next year, you will see a lot of innovation as we, what I call, complete the concept. It's almost a revolution than an evolution around the menu. So a lot of newness coming. We've never had a more robust menu innovation pipeline, but doing so in a very disciplined way with a very robust stage-gating process, making sure that it does not detract from us delivering on our core from an execution perspective and have a very clear idea of what our -- what we call our op sandboxes to make sure anything that we are doing, again, does not deteriorate our overall operation. The other thing we've learned from our guests is they love newness from us. They love our seasonal menu. It drives retention. They love just -- in this noisy media environment, newness really works. So we've actually picked up our pace of newness, but we figured out ways to do it without a lot of complexity. And I'll just give you one example. This year, we started the year with our collaboration with Function Health and Mark Hyman, created a menu, kind of a new year menu around Function Health. But all that menu was all done with existing ingredients. So from a store perspective, there was no new -- there was nothing really new the team had to do, but all of a sudden, you had this new menu and this big media marketing campaign around this new menu. So there's a lot we can do around creating newness without a lot of complexity. And you'll expect to see a lot more moments of newness, which we've seen help us drive transactions and acquire new customers.

Perfect. It's been almost a year with the new loyalty program, a lot of evolution expected there as well as you continue to redefine the brand value proposition. How are you thinking about like using the new food formats like the wraps, for example, to revisit the menu architecture in conjunction with some of the innovation you have coming in?

Yes. So as you mentioned, we're about a year into loyalty, have learned a ton. Overall, we're pleased with the program, but see a lot of opportunities to continue to optimize it. A few of the areas that we're looking at, one is lower redemption tiers. So right now, it takes quite a lot of points to get a free item. So we're looking at how we can engage guests earlier in their journey. So that's one. Two is we've seen a lot of excitement around what we call our GOAT status, greatest of all time, kind of like our higher tier loyalty today. It's a secret tier. There's no clear way to earn into it. It's something we're evaluating where tiers make sense. Third is actually how we leverage -- how we bring more sophistication to our CRM and the gamification within loyalty. So with the advances in AI, you'll see our CRM move into more of a truly personalized agentic AI-driven CRM. So instead of having kind of cohorts, it really truly becomes one-to-one marketing, not waiting until a customer churns until you're doing something, but being able to predict right before churn and how we can find what the next best action is to prevent that churn, understanding kind of the LTV of our guests. You talked about how menu can help us. For example, wraps is the type of item given the price that can be a lower redemption tier. The last thing, and it speaks to kind of the brand, Sweetgreen, we see ourselves as a lifestyle brand. And there's more we can do to leverage loyalty from a lifestyle and community perspective. So that's things like in real-life events. Last week, we hosted run clubs all over the country for our loyalty members as an example. There's a lot of other ways we can kind of do more storytelling and community-driven things within our loyalty program. And just one more thing that I forgot, there is more around the experience around loyalty from a product perspective. So one thing we've been piloting is what we call the craving of the month, which is a gated menu for loyalty members. So we now have -- we're on our second month or the third iteration of it, where it's a lower-priced menu item, so something between $10 and $12 only for loyalty members, which are bringing -- which are really helping us both on acquisition and from our lapsed customers coming back. Expect us to do more there, not just price and value driven, but also just exclusive products that only are available to loyalty members. The other thing that is helping us on loyalty is in-store, we've enabled scan-to-pay. And so we've seen scan-to-pay double in terms of incidence. So we went from about 10% to 20% of our in-store transactions now being scan to pay. Our loyalty members are 2x more valuable than our non-loyalty members. So being able to convert our in-store guests to loyalty and allowing them to scan and pay in store is a huge lever for us as well.

Perfect. Just going back to the operations and then the stage-gating process, which you have perfected like for the past few quarters, discuss the learnings on what -- how the wrap test like initially started off in L.A.? What were the bottlenecks and what were the pleasant surprises like surprise on both the sides, better and worse? And then like how was the rollout planned for the current like 68 store test? And how do you plan to go from there?

Sure. So we started this exploration really understanding what the customer wants, both from a product perspective and then all the details around it. So a couple of examples within that. When we were testing the product with customers, we learned that the product was much better if you mixed before you wrapped. It was also much better if you cut the wrap before you serve it. So it sounds like small things, but they really impact the overall experience. So those are things that we had to really try to figure out, can we do those things that the customer really valued without impacting the operation or throughput. So we ran a few week test in a couple of stores we call wrap-a-palooza, where it was rapid iteration and testing, learning about where we should put the tortilla press, where the mise en place for everything goes. Do you steam the tortilla before you wrap -- before, after all the little details that perfected. The good news is the wraps work perfectly in our workflow and a lot of people ask, do they work in Infinite Kitchens, they do. So the Infinite Kitchen is also -- wraps are enabled by the Infinite Kitchen. Step 2 was moving it to a rapid ops test where we took 8 stores in our home market in Los Angeles, and we ran it for a few months, really to work out all the kinks. And again, it passed that stage. We've now moved into the next stage where we're in a handful of markets and almost 70 restaurants. Now we're really seeing what happens when you go from a really closely watched test in 8 stores to about 1/4 of the fleet. And now we're looking at what does incidents look like, what does incrementality look like? And what does it actually do when you -- to our operation as we expand the test? So far, we've been very pleased. We're getting a lot of positive reaction from consumers. We're seeing the return rate of wraps -- encouraging. The incidence has grown significantly from launch. So just like almost every day, we're seeing incidents improve, and we're seeing a lot of organic social on it, which is an encouraging sign. So still very early, but encouraging that the stage-gate process is working and this innovation muscle that we're building, really learning from both past success and failures has made the company much stronger. And again, got us to a place where we feel very confident in that menu innovation muscle, and we'll be continuing to innovate our menu to broaden what Sweetgreen is over the next 2 years.

Perfect. On the real estate strategy, the slowdown is intentional, helps you get a lot of things right before you reaccelerate back. currently, 20-ish gross stores, 15 to 16 net with closures. Next year, probably start like rebuilding the pipeline depending on how the progress on the Sweet Growth Transformation comes across. How important is it for the company to focus on free cash flow inflecting closer to positive before you reaccelerate like back to the algo?

Yes. So very important. We have to obviously earn the right to grow. So there's so much going on behind the scenes to make sure that our economic model is working. So Jonathan talked about this suite growth transformation plan. So we have ops. So we have to make sure you have best-in-class ops, best-in-class experience every single time you go into the restaurant. And then that price value, so that barbell strategy, having that entry price in and that more premium price, right, and then wraps the new occasion in the menu. So all of this should be growing the top line. And so keep in mind, we're 1 quarter into the transformation plan. So all the foundation is getting built. So I'm excited to see what happens there. But then also on the cost side, we need to make sure that every dollar is working hard for us. So we have the sales leverage piece, but then we're also looking at the cost of goods sold. So we're looking at every single category and making sure we have the best prices, but also within the restaurant, how do we make sure the ordering tool is optimized. So they're ordering the right amount. So they're ordering not too little or not too much, right? So we're optimizing those tools. And then as Jonathan said, we have that labor study going on. So all of these things as they come after -- come together will help us earn that right to grow.

Perfect. On the G&A side, a lot of areas, marketing, and we'll talk about that separately and then excluding marketing, you have given some guidance post the Spyce sale. How do we think about this on the longer term areas to focus on investing outside of marketing versus where you can get leverage faster?

Yes. So that was one of the first things I did when I came on is really looking at our G&A structure. And so this year, our underlying G&A is going down about 2%, and that's not from the Spyce transaction because once you add on bonus. So it's really looking across the model and seeing if there's any redundancies and making sure that over time, we obviously want to invest in growth, but we need to make sure we're leveraging our G&A. So that's a big focus of ours.

Yes. We've been able to reduce G&A almost every year over the past 5 years. And so it shows that the discipline is there. The goal going forward is to continue to leverage it. And as Jamie said, move more dollars to things that will be driving transactions, things that consumer can feel or telling our story more from a brand and marketing and really leveraging the rest. And I think given the foundation infrastructure we built, both from a systems, technology and talent perspective, we're -- the G&A is highly leverageable.

You have mentioned marketing and branding as one of the priorities at the beginning. I mean, as a percentage of sales, it continues to grow. But as we look at like the Sweet Growth Transformation Plan, how are you measuring the entire marketing dollar spend, especially when you look at '25, like what has worked, what has not worked? And talk about like revisiting even the social media strategy, for example, how should we think about this?

When I think about marketing, I think about the art and science framework. And if you go back to the Sweetgreen's history, we were very good at the art. It was all brand marketing. It was community. It was music festival and events and really a lot of storytelling partnerships and collaboration. As the company scaled, we moved more towards the science, right, more bottom funnel, growth marketing, conversion, things that were actually really measurable. And I think the answer is actually more of a balanced approach of both. As a lifestyle brand and one that's trying to create this new category, we need to invest more top of funnel, tell stories, partnerships, collaborations, events that does a lot to create this brand awareness and brand affinity in the hearts and minds of our consumers while still maintaining the bottom funnel tactics. We have changed -- we brought in a new media agency, changed a lot of our media approach, and we're seeing some really good success. So we have a new Chief Commercial Officer, Zip, that is just awesome, gets the art and science. And so you'll see us do some wild stuff that's hard to measure that just is great from a brand perspective and is, call it, brand over time as well as the marketing stuff that is sales overnight. So just a really balanced approach around that, but expect this year to see more of a shift towards the brand marketing. And to that point, more on social, more on influencers, more on content, really meeting the consumer where they are.

Perfect. On delivery is like a very important channel for you guys, like 20% to 25% of sales, maybe more in some of the markets like New York, for example. How important is it for the brand to communicate and importantly improve the value proposition on this channel? And what is being done to address? There has been a lot of discussion across the industry and how you want to balance the pricing architecture on the third-party channels and the fees and then also the promotions. Can you discuss like what is happening behind the scenes or anything that you could like to share?

We're in the middle of a strategic review of our marketplace -- all of our marketplace experiences and looking at all of those things, whether it be our price markup on the marketplaces, which the original approach was more around protect margin, but there are certain tests around less of a price premium to drive transactions, but we really want to understand the elasticity there. There's also a lot of work being done in terms of the spend on marketplaces and how we can get a lot smarter about our spend, whether it be sponsored listings or promo spend on that. And so we've actually seen some encouraging results in the past couple of weeks around some of the work we've done around the marketplaces. Each one operates a little bit differently. There's also a lot around the organic algorithm, whether it be things like our operational metrics of order times, order readiness, order accuracy that helps in terms of the -- naturally showing up higher in the algorithm. But we're very strong on delivery. The brand very well suited for that off-premise channel, and we're going to continue to optimize it. Do see that as a growth channel for us as we continue to grow. I mean you see all the data that's come out actually some today, like our consumer is definitely there. And so we've always believed meet the consumer where they are and make sure we have a product, price offering that makes sense for that channel. And the only thing that is that outside of the core delivery marketplace, we have also been investing a lot in our catering. We've seen amazing growth in catering. It's not only a great sales and margin driver, but can be a great customer acquisition tool. This year, we launched large-format catering, which is about 75% of the catering market is large format versus single bowl. So we've seen some awesome growth and early green shoots on that channel, and we will expect that to continue to be a growth driver for us.

Perfect. Now to our favorite topic, Jonathan, on technology side. You have always been forefront in terms of digital, in terms of automating like many clients and things like that. World has been changing pretty rapidly in the past couple of years. And can we talk about like -- let's like -- I want to break this down into 2 sections. The first, the software side and then the agentic AI side where how the search is evolving and how to stay relevant in a post-LLM search world? And then also how you are leveraging internally through your office functions and IT teams, like how is the adoption curve has been -- have been seeing like where it has to start from the top not from the bottom? So let's talk about that. And then separately, autonomous delivery has been getting a little more traction. We have been seeing more pilots by some of your peers outside. There's also like the whole drone delivery thing like which we have been like talking about. You can answer like -- that after this.

Sure. So I'll start with the first part, which is around agentic ordering and what we call GEO search, so generative engine optimization. So we've done a lot of work in terms of GEO already to make sure that we are well positioned around how we show up in an LLM. And our -- while we haven't launched ordering through LLM are very well positioned to do so given the tech and data infrastructure that we have in place. So that's one. We do also have certain tests coming around agentic AI, one, which I mentioned earlier around CRM. Another is we've been using AI for CX for quite a while now, one of the earliest customers with Sierra and have seen some great success. Where that is probably going is not just a CX agent, but potentially an ordering agent. So again, really well positioned for when the consumer is ready for that. We will be very well positioned to take advantage of that. Secondly, you talked about efficiencies within the organization. We've been very early first movers around leveraging AI inside of the organization. I'm a big user myself, so is our whole leadership team. And we have AI champions across the organization, really going through all of our different processes and workflows and where we can have agents and AI help us move faster, save costs and really do things better. Even just the past 2 months, everyone watching the news, it's been transformational, watching a lot of the improvements that we've seen. First thing I do in the morning, I wake up and I kind of have 5 agents go do some stuff for me and come back. So I'm just really, really excited. I think it's really -- it's still very early, but the company, given our innovation mindset and our technical infrastructure, are really well positioned to take advantage of this. Last piece, you talked about...

Autonomous delivery.

Autonomous delivery. So it's something that we've talked to all the players. We think there's -- over time, that could be very interesting. It's not a huge focus area for us right now. It's something very easy to turn on through our marketplaces. If the consumer wants it or there's economic benefits to doing it, we're there. We do -- we are planning eventually a pilot with Zipline, which we announced a long time ago. When the time is right, we think that could be really interesting around drone delivery. But overall, I'd say autonomous delivery is not a major focus for us, at least this year.

And then one thing to add on the tone at the top. We have an AI club and Jonathan is the most active in that AI club, but it's really cool because it gamifies it and you can see everybody and like what did they do and they're sharing it. So I would say high buy-in on the AI side.

Yes. We built skills. We built a whole skill category. I mean the most important thing just to leverage it properly is having the data infrastructure in a really good place. So you want -- we -- given how technology forward we've been, we have data all the way from our oven data of how often we cook things, to our [indiscernible] of how often we prep things, to all of our people data, all of our customer level data, all of our sales data, all of it built in. So I can kind of go on and ask for correlations between fresh -- store performance and how many times they cook -- how often they're cooking chicken and start to understand. So it's uncovering a ton of really -- a lot of great insights. And I think the -- for right now, the biggest thing that's unlocked is a lot -- this data insight action loop moving much faster, things that would have taken weeks or months to go from like, hey, I have this hypothesis, where is the data? What's the insight, like what do I do about it? That loop has turned into like a 24-hour loop. Like it's like now you can literally do it in like in the same day and put out tests.

That's awesome. Just one last topic before we close off here. New York market, it's been pretty challenging for a lot of brands, a lot of competition. What is the big like solution in your mind, like if not like we'll expect to see it soon on how to revive that market and get back to performance levels where you can? Is it like the pricing? Or is it like some of the older stores that can like use some elevation in wipes? Like any thoughts you could share there?

Sure. New York is a critical market for us. It's still a very strong market. It definitely has been under pressure. But there's a lot we're doing there. One, first and most importantly, it's the actual experience in the restaurants. And we've elevated -- we brought in a new RVP to run the region. She's done an amazing job elevating that team, putting the right leaders in place, both at the area manager and the head coach level. And we've been investing a lot in that leadership development and hospitality training that I've talked about. So that's part one is just the overall experience. There is some work being done in terms of the actual fleet itself. So whether it be stores that are up for lease that we will relocate, renovate or close, we are looking at -- there's a lot of portfolio work being done across the region. And then the rest is really work that's happening across the enterprise that will definitely help New York. Things like wraps and broadening the menu -- so the menu innovation work, things like the price value work and the brand work, those all obviously have an outsized impact on New York.

Perfect. Thank you. Thanks a lot for joining us here, Jonathan and Jamie. Wishing you the very best throughout the transformation. Thank you, everyone, for joining us this year on the conference. Looking forward to seeing you guys next year at the same venue. Thank you.

Thank you.