Bloomin’ Brands, Inc. (NASDAQ:BLMN) Q3 2023 Earnings Call Transcript

Page 5 of 5

David Deno: Yes, I’ll talk about some of the service elements and then I’ll come to Chris, if you want to follow up anything on the financial side. We’re excited about the financial benefits of the equipment. But for me and for our company, it’s the service and food that’s really going to help. And so like steak accuracy, right, that’s the number one thing in the restaurant in the steak category, improving steak accuracy for our customers and the grills certainly help with that. And that’s been embedded, rolled out, and we’re seeing improvements there. Certainly, service attentiveness because we have the servers on the floor at all time because they don’t have to toggle back and forth to enter the information. That’s also extremely important and another measure that we’re looking at very carefully.

So those are just two examples, Brian, from an operating standpoint that we’re looking at. Obviously, table turns will help, too, but we don’t want to push the customer too fast. But the service, the measure and the steak accuracy measure is extremely important for us. And I’ll turn over to Chris for any other financial comments.

Chris Meyer: Well, yes, the only thing I would say is when we started this year, we targeted like $50 million of productivity benefits for the year. We’ve actually had to increase that number. We’re up closer to $55 million for the full year, and a lot of that increase is due to the fact that we’re seeing very strong effectiveness of the technology that we’re putting into the restaurants. In terms of benefits, again, a lot of the $50 million is incorporated in that. You certainly are seeing improved ratios of servers to tables. In terms of the front-of-house technology that’s driving benefit financially. In the back of the house, we effectively reduced the amount of recooks, that it’s a very, very record low number. Our food waste is now at a record low number.

So look, this whole package really works. It really helps benefit the entire P&L. But importantly, looking just beyond just the productivity aspect of this, Brian, I do believe that, again, when we talk about building a business that is maximizing the price value equation with exceptional food, service, ambiance, et cetera, all of these investments are not just layers to drive productivity, but they are also layers to drive future guest frequency when you have a great — it’s not this business as we learn time and time again, it’s not that terribly complicated. When you provide excellent service at a great value to a guest, they want to come back. And that’s what this technology really at its core is designed to do. It does take time to see given the kind of the amount of frequency that our guests come into the restaurant, that takes time to show up in traffic.

But boy, I’ll tell you, it certainly is something that we’re confident that we’ll build traffic over the long term.

Brian Vaccaro: All right, thank you very much. I’ll turn it back over.

Operator: Those are all the questions we have for today. I would like to turn the conference back over to David Deno for any closing remarks.

David Deno: Thank you, everyone. Thank you for attending the call today, and we look forward to talking to you on our Q4 call. Have a great day.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

Follow Bloomin' Brands Inc. (NASDAQ:BLMN)

Page 5 of 5