BurgerFi International, Inc. (NASDAQ:BFI) Q2 2023 Earnings Call Transcript

Michael Albanese: Okay. Got it. All right. That’s it from me. Thanks guys and good luck to you.

Chris Jones: Thank you very much.

Carl Bachmann: Thanks, Michael.

Operator: [Operator Instructions] Our next question will come from Eric Dusansky with InflectionPartners. Please go ahead.

Eric Dusansky: Good morning, and Carl and Chris, welcome aboard. Thank you for the overview this morning. Both of you, we’re in the early stages of a turnaround, and you both are probably still trying to find out where the men’s room is. But if I may, are you seeing — starting to see some potential green shoots of a turnaround? And if so, if you can kind of articulate that a little bit, that would be great.

Carl Bachmann: Yes, I think we are starting to see something different from both the top line and from a cost perspective. I think shoring up our operational prowess around the right leadership in the teams, connecting the leadership here, creating a culture here of winning I think has got people excited. I think we’ve kind of adopted this rally cry here in the sports center that if you’re not serving the guests, you’re serving someone who is — and that’s important because we’ve sent a message to our franchisees and to our employees across the country that we’re here to support them. And I think they’re responding really well to that. That’s important to me, and I think it drives the business. Literally, you’ve seen same-store sales improving in BurgerFi on the corporate side and the franchise side in the last month or so.

Anthony’s, I alluded to on an earlier question, the northern stores have positive comps and continuing to grow. So we see that as a really a strength for us. And really, as you get into kind of August, end of August and you get kind of out of that dog days of summer and you get kind of into the fall, I think you’re going to see, like Chris alluded to, the snowbirds coming down here, and we’re going to be launching new items to excite these people that haven’t seen it since the earlier last year. So we’re really excited about that side for the south side of Anthony’s. So I think there are quite a few green shoots there. And I also think the opportunity to increase the funnel, like I mentioned earlier, with new items that are traditional. I mean, we’ve got to have a great spaghetti and meatballs at an Italian restaurant that delivers such great products.

So I think that was a miss for us and an opportunity. So I think that will open up a new, a new guest again, increase that guest funnel and create new trial. On the BurgerFi side, we have a gap in the menu. We don’t have a grilled chicken offering. And once we have the grilled chicken offering, it opens all kinds of opportunities around what we do with that grilled chicken product. So I think it’s important to offer different proteins. We’ve done a great job having the Beyond Burger, having VegeFi, having a great beef product with a never ever and now we’re adding that grilled chicken protein, which was a huge gap. And finally, such huge amount of guest feedback around our French Fries and our process. We use a fresh-cut potato and it’s a phenomenal product but our process was flawed.

So our ability to change the process already is impacting our guests day one just in our testing. So I think there’s quite a few opportunities that we’ve identified in the first 30 days. And as we kind of go down that path, I’m sure there be other things that we’ll launch when we speak again. But absolutely, there’s a lot of big opportunity on the horizon.