BurgerFi International, Inc. (NASDAQ:BFI) Q3 2022 Earnings Call Transcript

And what we saw was we had good outcomes from a number of attachments and therefore a number of transactions. We then — and so from a from a dollar profit perspective, it was not in that one test, which was not commercially advertised. It was in a restaurant and in market opportunity. We saw attachment rate lift of sights and beverages of between 10% and 20%. And that that in the totality will be able to drive transaction values in stores. Now, once we bundle that, that transactional behavior in the store and in delivery, where we saw really good outcomes in delivery. Because now delivery, there’s a value opportunity to as a beverage. Now that we’ve backed it up with commercial, it gives the customer a reason to come back in and frequent BurgerFi, because now there’s a value proposition for them.

So the thesis was both attachment and average check totals with having a value proposition to drive consumer behavior into our restaurants. And so that’s launching now and we’re very hopeful.

Peter Saleh : Okay, maybe just one more on my end, and then I’ll pass it along. Do you anticipate that this will be a permanent fixture on the menu, or is this an LTO at this point?

Ian Baines : Well, we did, we did the test in the one market, and we were pleased with the outcome. And I think we’re going to learn here between November — and the end of November and December, what this is doing with our business. We certainly want to make sure that it’s a good, a good initiative. And if it is, then we would look at something more permanent. But we’re in that evaluation page — evaluation stage.

Peter Saleh : Great, thank you very much.

Operator: Our next question comes from from Drexel Hamilton. Please go ahead.

Lynn Orenstein: Hi, it’s Lynn Orenstein from Drexel Hamilton. Thanks for taking my question. And congratulations on the strong pipeline of franchisees. And I do have a question regarding the pipeline, can you tell me approximately how long it takes for a target in the pipeline, to sign a development deal and open basically, like from beginning to end? Do you have a general timeframe? Thank you.

Mike Rabinovitch : Good morning. It’s nice to hear from you. I’m going to start with from the middle to the end. Once a franchisee has executed their development agreement, if they have a site pre-selected, if they have a lease pre-negotiated, you could be looking at a 12 to 16-week cycle to procure and build an open a restaurant. Every situation is different if it’s a second generation spot that’s ready, versus one that needs to be constructed by the landlord. So we see from development agreement, signing to opening, we could see anything from three and a half months to six months depending on where the individual location stands with its construction and readiness from a landlord perspective. Now the timeline from meeting a franchisee, to signing a development agreement, it could be under 30 days, it could be six months.

And a lot of it really depends on that franchise’s enthusiasm, readiness from a financial perspective, operating experience, their own decision on where to be investing a lot of our franchisees or potential franchisees has many choices in the market. So, I hope that’s not too broad of a statement. I’d say six months to one year.

Ian Baines : And then there are time that can depending on the market that can be permitting issues, not anything wrong, but it takes time, depending on the municipality. And then and hopefully, we’re starting to move off these issues in terms of construction, materials, equipment, which seems to be gradually getting better.

Ian Baines : And let me clarify if the question was framed off of how we view our pipeline for next year, those are not potential franchisees. Those are signed agreements, with locations identified with some level of progress being made on their execution towards opening.