Brian Niccol: Yes, sure. So obviously Canada its full steam ahead, right? We’re opening; I think the most restaurants we’ve ever opened from a percentage standpoint and probably absolute standpoint ever in Canada which is really exciting. And those economics continue to perform really well. When you look at Europe, look, the top line is really performing. And frankly, we’ve been much more patient on pricing there because we want to make sure that people have the experiences with Chipotle. So, there’s a lot of inflation that we’re still dealing with in Europe. But look, we like what we’re seeing; the good news is feedback on the experience is really very positive. Feedback on the culinary is very positive, and the most recent restaurants that we’ve opened are performing really well.
So, we’re just taking our time with it because unfortunately, the last three years have not been normal in any way. So we just make sure we aren’t getting any false positives or false negatives on any part of the business. So the good news is we’ve got a tremendous growth runway in the United States that we can be, very patient with how we approach our international expansion. But look, the early signs are people like burritos and bowls and they like our culinary and they like the convenience and they like the speed. So that’s a recipe for a lot of opportunity down the road.
Operator: Thank you. And the next question is from Danilo Gargiulo with Bernstein. Please go ahead.
Danilo Gargiulo: Great, thank you. So if I understand correctly, the traffic improvement you’re seeing seems to be standing primarily from productivity and operational improvement also as you are moving along in 2023. But I’m wondering your expectations on the demand side from consumers and in particular, whether you are seeing or expecting any trends that could be possibly offsetting the productivity and operational improvements as we are moving along in 2023?
Brian Niccol: No, look, the consumer demand, especially if we use kind of our in-store experience right now looks to be there. Especially as you look at the higher income consumer, their purchase frequency has actually gone up. So, we fundamentally believe that better we operate, the better our performance will be. And that’s why we’ve got, Scott and the team have a full court press, frankly on, great people, great culinary. If we do those two things against our operating standards, we believe we’ll continue to make progress on throughput and we’ll continue to see the gains that hopefully, we’ve experienced in the first part of this quarter.
Danilo Gargiulo: Thank you. And I think you also mentioned there are some positive signs that are emerging from Project Square One. I was wondering if you can elaborate on that one and maybe like share a couple of metrics, where you’re particularly proud of.
Brian Niccol: Yes, look I mentioned this earlier obviously one of the things that we’ve seen is a lot less incidents of many deactivations. So when you go to order online, all the products are available chips, guac, chicken, steak. That is dramatically decreased. And we know that’s a big deal because when you order online, if you don’t have what you want available your conversion rate goes down. And so we’ve seen when we have the products in stock, our conversion rate gets back to where it should be. We’ve also seen a huge step up in our on-time percentage, on-time in a meaningful way. And then we’ve also already seen some progress on throughput, albeit small movement, but I think that has more to do with the time of year than a testament to the impact of Project Square one.
What I also think is also really great news is we have more stability in our teams than we’ve had in over two years, and we’ve got more teams at model with less turnover, and I think Scott’s got these teams focused on deploying correctly and getting trained shoulder-to-shoulder, so that they’re ready to go when the rush shows up.
Operator: Thank you. And our final question today will be from Brian Harbour from Morgan Stanley. Please go ahead.
Brian Harbour: Yes, thank you. Maybe first just a question on delivery, are you able to see in your data that those customers have shifted to coming into the stores or mobile order-ahead, or do you think those customers have basically fallen off as you’ve seen that business decline a little bit?
Brian Niccol: What it looks like to us is we’ve definitely seen people make a shift in restaurant and then some shift to order ahead. That’s probably been the biggest trends that we’ve seen. Obviously the premium especially when you operate in our white label execution is one of those places where you can quickly compare, like what’s the difference between ordering delivery versus ordering pickup. And that’s an obvious one where I think we’ve seen as a result, people they toggle between the two and then they choose order ahead. So yes, we’ve seen people stay committed to the idea of getting Chipotle. I’m sure there are those customers where if something’s, free somewhere else for delivery, they might take advantage of a freebie.
But look, we’re not interested in renting or borrowing customers. We want people to be a part of the Chipotle business because the value proposition is right for them, they buy into, the food that we provide, the culinary that we provide at the convenience and speed at which we provided. So that’s been a conscious choice, and I think it’s going to serve us well in the long run.
Brian Harbour: Okay. And maybe just a related question on kind of some of the new perks that you rolled out, the Freepotle that you launched in January. I mean, is it your view that, that drives kind of a step up in frequency or how else do you think it’ll affect customer behavior? Is there any margin impact of that? And then I guess, also you, it sounds like you’ve seen kind of mobile ordering stabilize, but do you want that to grow as you go into the next couple of years and do you think this can kind of be a catalyst for that?
Brian Niccol: Yes, look it’s doing two things. One, it’s hopefully keeping more people engaged in the loyalty program. We’re only what, one month in on it. And then also acquiring more people into the rewards program. And so it looks really promising that it’s doing exactly what we’ve want it to do. But again, it’s only one month in. And what was your second part of your question?
