Rick Cardenas: Hey John, it’s Rick. We’re not necessarily going to talk about specific triggers. What I can say is we’re going to be very prudent in our marketing spend. We’ve done a lot over the last few years to simplify our business to make it easier to operate and we’ve done a lot of testing during this time on what marketing really does drive. And when things change dramatically, we may change. But right now, we’re going to continue to stick to our strategy of making our communication be much more branded, elevating brand equity, simple to execute, and we don’t expect it to be a deep discount. So, we’ve — this industry has gone through this before, buying guests, and we’re not ones that are going to go out and buy guests. We’re going to continue to do what we do and strengthen our business. And if things change, then we may react.
Operator: Our next question comes from John Ivankoe with JPMorgan.
John Ivankoe: Just a follow-up on that, I think. I know we’ve talked about most consumers not trading from full service to limited service and certainly giving up dining out, something that people don’t want to do, especially when they’re employed, but you’re guiding, and I assume a lot of guidance over the next three months or so, is assuming a negative same-store traffic. So I guess the question is the grocery in terms of total number of meals consumed is still bigger than restaurants, actually multiple, maybe 2-plus x restaurants depending on how you want to calculate it. Grocery pricing has actually been well in excess of restaurant pricing. It remains so now. When you guys think for it and this is, I guess, a forward-looking question, really a view of your industry.
Grocery pricing oftentimes follows commodities. Commodities are expected to drop just in your own language from what was 10-plus percent to very low single digits. Is there like a way to kind of be prepared for grocery kind of retaking relative value relative to restaurants? And is that something that you think about internally and maybe to Jon Tower’s question of maybe bringing back some advertising, bringing back some promotion just to make sure that you’re keeping customers maybe the bottom 5% or 10%, whatever you want to say, still coming your brand and using the brand even if year-over-year grocery start and other brands, perhaps limited service included start to emerge as a pricing opportunity for them.
Rick Cardenas: Yes John, thanks. It’s Rick. One of the things I want to let everybody make sure they hear is we’re not going to risk margin, significant margin declines because of what happens in the economy. If food costs go down, think about what we’ve said in the past, a 1% decline in commodity inflation will offset a 2% decline in traffic, all else equal, with us doing nothing. So if commodity costs come down and inflation comes down, we can weather a little bit of a traffic decline and still get to the same EBITDA. So, I think we have to think — and the industry has to think long term about how they drive traffic through discounting. And we have made that shift and we made that shift, even started it before COVID to drive traffic through better experiences, better overall value and not discounting to a very small — a small portion of our guest base. So, that’s our strategy going forward. If things change, we’ll let you know.
John Ivankoe: Well — and I think that’s very clear to lesson permanently learned, not temporarily learned, and I think that’s important certainly to hear and express. Thank you.
Operator: Our next question will come from Chris O’Cull with Stifel.
