Sara Senatore: Just a follow-up on the capacity comments. I appreciate the detail on sort of net growth I guess my sense is though that there’s growth coming from chains and shrinkage coming from independents. So maybe capacity, if you will, hasn’t come down quite as much as unit count would suggest, given the chains tend to, I think, have bigger boxes and higher volumes. So I guess I’m just wondering if you have any kind of thoughts on that, this idea, there’s this notion that maybe it’s been more of the chains that have gotten hurt and therefore, there’s still a fair amount of capacity out there being added. And then I just have a quick follow-up question on labor, that was, I guess, in line with expectations of the wage inflation, but we’ve been seeing such a moderation in wages, I guess, I’m trying to understand for some concepts, perhaps.
So I’m trying to understand if there’s maybe a difference across markets or geographical or segments, full service versus maybe limited service where statutory minimum wage increases have more of an impact. Just any color you can give on that because I would have expected, I guess, a bit more moderation there.
Ricardo Cardenas: Sarah, this is Rick. I’ll take the capacity question and I’ll give Raj to get the labor question. So on the capacity, you’re absolutely right. We’ve seen more independents, which some — in some places are a little bit smaller in total seats than the chains. But I don’t know if you can get 11% of the restaurants to come out and have capacity in seats grow. We have seen the chains that still are — still opening restaurants, but not at the level they were before, and it’s not helping offset all of the other capacities coming out of the system. And with the inflation on construction costs and the margins that a lot of folks have, it’s a little bit harder to open restaurants as Raj said earlier, we’ve actually walked away from deals even though they were above our cost of capital because we thought we had some better deals.
We’re not quite sure that everybody can do all of that and still get — open their restaurants and still get the same kind of returns they were getting before. So long answer to your question, but capacity is impacted by what kind of restaurant is opening or closing. And you’re absolutely right. The independence is generally a little smaller. And so capacity seats are probably not down as much as units are down.
Rajesh Vennam: Yes. And on the labor side, as you look at where we started the year, the hourly wage rate in our first quarter was mid-9. So I think we said 9.5%. Second quarter was 8.5%. So you saw like a full point change in the rate of inflation. We expect that to continue to go down maybe 50 basis points a quarter for the next 2 quarters. So we are seeing moderation Obviously, this takes time in terms of once you give somebody an increase, that’s there, that impact for the full year. And then as we bring on new people, we are seeing that the — there’s not as much pressure on the starting wage as it used to be. It’s still high. It’s still way higher than pre cover, but it’s not — it doesn’t continue to go — it’s not continuing to go up. And so hopefully, that answers your question.
Operator: We’ll take our next question from Andrew Strelzik with BMO.
Andrew Strelzik: I just had 2 questions going back to kind of the food cost outlook. The first one as you move towards flattish commodity inflation or what have you in the fourth quarter, is there an opportunity to be a little more aggressive locking in where you can to improve that visibility on the cost side? Or are there still challenges doing that or maybe you think prices are going even lower. And so that’s at play. So curious how you’re thinking about that, number one. And number two, it seems like you’re maybe a bit more optimistic on where food inflation is headed than some of the commentary from your peers recently. I know there’s the food basket, there’s timing differences. But I’m curious if there’s anything else maybe that’s driving that divergence in particular, I’m wondering if maybe this is the scale benefits playing out. So curious how you think about that as well.
Ricardo Cardenas: Andrew, there’s a lot in there. So I’m more to try to just address all the pieces. Let’s start with the ability to lock in I think for some products, we have that for some, we don’t. Like if you think about beef, for instance, I don’t think — I think a lot of suppliers are innovating more. They want to see what’s going to happen with supply and really understand the price. So at this point, very few suppliers are willing to last beyond 90 days. So that’s truly a structural issue in terms of really the ability, I guess, on that. But there are other products where we can lock in, and we are locking in. So we are continuing to kind of look at wherever there’s opportunity to lock in at a good price, we’re doing that.
That’s why you saw that for chicken, for example, we’re 90% coverage for the back half. So we did find a price that we thought was good and we — and closer to flat to last year as we get into the Q4 of this year. So we lock some of that in. And so we are playing it by the year. Our supply team chain team does a great job kind of really thinking through the best strategy to minimize inflation for us while leveraging the relationships. Obviously, as you mentioned, scale helps. Our contracts are bigger, and that gives us the ability to have a little bit more leverage. And again, this is Big part of this is long-standing relationships our teams have built teams have built with the suppliers that help us get to a better number overall rate that we pay.
Operator: Our next question comes from Christopher O’Cull with Stifel.
