Tricia Tolivar: Yes. So as we talked about on the third quarter call, we did invest in incremental labor in Q4 of 2023, about 120 basis points, I mean that will be offset with just a natural leverage and labor over time as AUVs grow. But the other thing to think about is other investments that could be related to our pillar around running great restaurants every day and every shift, so think about things like increased managerial resources at higher volume restaurants that would drive increased productivity and further pipeline depth, but at the same time, creating productivity over the long-term. So there’ll be investments that we’re making that we’ve shared, and then that will be offset by leverage overall as we continue to scale and grow the business and the restaurant.
Brian Vaccaro: And, I think, you mentioned opportunities to improve throughput in certain markets as well. Is there a thought that you’ll need to add hourly hours per store in a significant number of stores?
Brett Schulman: Hey, Brian. It’s Brett. No, we think there’s opportunity to be more efficient with our labor deployments and recalibrate how we deploy labor, along with some of the aspects I talked about in relation to the connected kitchen initiative that will drive even greater productivity through our data.
Brian Vaccaro: All right. Great. And then my real question kind of is just, can you provide some more color on how the converted Zoes’ units are performing? Perhaps, you could touch on the year-on-year comp growth for the class of the 2021 conversions or some color on where AUVs are currently running for the class of 2022 conversions. Thank you.
Tricia Tolivar: Yeah. So we’re pleased with our Zoes conversions, and we look at those like new restaurant openings. So we evaluate those with the others. And as I mentioned, our new restaurant openings are exceeding our expectations and really excited about those conversions, as well as our organic ground-up NROs.
Operator: Thank you. Our next question comes from the line of Rahul Kro at JPMorgan. Please go ahead. Your line is open.
Rahul Krotthapalli: Good morning, guys. Thanks for taking my question. Can you elaborate a little more on the 3.0 design, Brett? Are you guys like trying to lower the cost of the box? Or are you like actually scaling up and increasing the cost while you’re trying to increase the movement space in the box?
Brett Schulman: Yeah, Rahul. Thanks for the question. No expected change in the cost of what we’ve guided to. This is really about warming up using some of our refresh palette colors, some environmental aspects, softer seating. We think we have a great opportunity. You’ve seen the full-service model be challenged to the modern consumer to deliver a relevant value proposition, and we think of our value proposition as quality, relevance, experience, and convenience. We’re able to deliver that quality food, relevant food, Mediterranean diet, number one ranked diet 7 years running, really that unique cuisine where taste and health unite, convenience, certainly with our digital channels and our fast format, and then experience.
We think we can deliver great experience and an enhanced dining room aesthetic to drive even greater physical occasions as we drive greater digital occasions. So we’re just kind of reimagining how we show up in our dining rooms to make it more inviting and drive greater in-restaurant occasions and occasions across all channels.
Rahul Krotthapalli: That’s perfect. Thanks for that. Brett, I have a follow-up. Thanks for all your color on the connected kitchen initiative looks like there is a lot to look forward to here. Meanwhile, are there any low-hanging-fruit within your existing operational structure that can be addressed outside this in a shorter timeframe? Anything related to labor or in-store ops, anything that you guys can discuss here?
Brett Schulman: Yeah, I mentioned it just a bit ago. We think we have an opportunity to be more efficient with our labor hours and how we deploy our labor when we do our prep versus our peak times and how we create more consistent labor efficiency across both dayparts. And we are actually – yeah, and actually, that test was deployed this past week on the initial labor redeployments.
Rahul Krotthapalli: Understood. So does this involve any movement of like prep off-premise, more prep off-premise, or anything else related of such sorts?
Brett Schulman: No, it’s simply balancing out prep and cook and deployments to better match the revenue curves of the restaurants.
Rahul Krotthapalli: Perfect. That’s helpful.
Operator: Thank you. And there are no further questions in the queue at this time. So I’ll hand the floor back to Brett, for the closing comments.
Brett Schulman: I want to thank everyone for joining the call today. Before we sign off, I want to say once again how proud I am of our CAVA team for delivering a record year in 2023. With 72 net new restaurant openings and success in new and existing markets, we prove the portability and broad appeal of our Mediterranean concept. Our guests were resilient as evidenced by 10.4% traffic growth, and our powerful unit economic engine continued to deliver impressive results. We’ve built a solid foundation for the growth we can achieve as we create the next major cultural cuisine category, and we are making thoughtful investments to drive long-term growth, profitability, and shareholder value. Thanks again for joining us. Happy Spring on Friday, and I look forward to speaking with you next quarter.
Operator: Thank you. This now concludes the conference. Thank you all very much for attending. You may now disconnect your lines
