Eric Gonzalez: I think it’s KeyBanc, but, hi, good morning. My question about labor during the quarter, the labor cost was pretty low at about 30 — low 33%, which is a big step down and I believe the lowest in several years that period. I’m just wondering about that reclassification revenue. Maybe you can quantify if that was a driver there, but also talk about some of the drivers that margin from an operational perspective. Did you maybe underspend due to staffing environment? And then just related to that on the investments, is there any way you can quantify that? I know you said it’d be less than you previously expected, but what sort of impact should we see in the current quarter and what type of runway should we expect before those investments pay off?
Joe Taylor: Yes. And good to see you’re still where you’re at, Eric, but, no, I think yes, labor did — labor really benefited from the sales leverage side of the equation and as we indicated some of the “investment back”, the incremental hours that we will be putting back into the system didn’t have as much of an impact in the second quarter because they were late dated when we really started that piece of the equation. So you’ll see more of that as we kind of move through the rest of the fiscal year. We also were able to pay a very hefty manager bonus, so it’s good to see the ability to make those team member related payments for the performance that they delivered and still deliver as a percentage of sales a nice labor positioning.
There’s all kinds of puts and takes as you go through the labor model. We had some benefit in there year-over-year on things like team member related insurance was a good guy and you do have a labor model that remember drives off of traffic. So there was a little benefit from the lower traffic generating less labor hour necessary relative to those volumes. But as you kind of move forward, I expect as we move through the next couple of quarters, you’ll see labor as a percentage of sales tick up something — somewhat. I think you’ll probably see something in the let’s say 40 to 60 basis points increase from where we were in the second quarter. Obviously a lot of that’s predicated on what you do on the top-line. There is a nice leverage ability piece of the labor stories.
So our ability to top — drive top-line again can create some sales leverage as you think about labor. But again, so I don’t think the delta, when you think about labor as a percentage of company’s sales is going to be very out of line. I think you’ll see it kind of in that 40 to 60 basis points range.
Eric Gonzalez: All right. Did you mean sequentially 40 to 60 basis points from the first quarter?
Joe Taylor: That’s sequentially from the second quarter.
Eric Gonzalez: Yes. Second quarter. Okay. And then on the — just on the to-go mix, maybe you could talk about what that was in the quarter. I apologize if I missed that, but also I know you took some price on the delivery channel, so maybe you can quantify that, but I was wondering if you’re seeing any pushback on that channel particularly is it — it’s very expensive relative to carry out to the extent that the delivery mix is held up. Why do you think that’s the case given the huge price differential and what seemingly deteriorating macro environment? And I’m wondering how much of that is just the aggregators being aggressive in customer acquisition or if there’s any sustainability to that channel.
