With Ruth’s, it’s not — it shouldn’t be as complicated, but a lot of the learnings we have from our prior acquisitions are incorporated into — are actually taking into consideration as we plan for this.
Danilo Gargiulo: Thank you. And what set of factors would prompt you to drive higher unit growth versus the data 50%? I know you mentioned more competitive bidding is actually starting to happen. But have there been any internal discussions on potentially international expansion given your recent quarter and also the recent acquisition of Ruth?
Rick Cardenas: Hey, Danilo. If you think about our pipeline for this year, most of the pipeline, you have to have already started construction by the time the year — almost by the time the year started to get them open because it takes a little longer to open a restaurant or build a restaurant today than it did before COVID. So if it’s not started by the end of Q1, it probably doesn’t open this year. Maybe even if it doesn’t start until — by July, it’s hard to open this year. So that’s why we’ve got our kind of guide of about 50 gross openings. When we talk about international, that doesn’t incorporate — that’s not incorporated in our unit count because we are committed to staying a company-owned model only in the U.S., not that we wouldn’t have franchise in the U.S., but will be only franchise outside the U.S. and Canada.
So all of our restaurants outside the U.S., the ones that we opened last year were all franchised. And anything that we open going forward is likely to be franchised as well.
Danilo Gargiulo: Perfect. Thank you.
Rick Cardenas: Yeah.
Operator: Thank you. Our next questions come from the line of Brian Harbour with Morgan Stanley. Please proceed with your question.
Brian Harbour: Yeah. Thank you. Good morning. I had a question just about fine dining sales. Is that really just kind of about the lapping dynamic or could you provide any comments on kind of some of the different customer sets, whether it’s business type of customers versus like a more aspirational customer, if you’re seeing anything different there?
Raj Vennam: Yeah, Brian. I’d say, first of all, as we said in the prepared remarks, we actually saw a fairly consistent retention related to pre-COVID for the last three quarters at fine dining. What we’re seeing is we are seeing a little bit of pullback on the alcohol sales. And we still think that’s also a function of wrapping on a significant increase a year ago. Now as we just generally speaking, what we’re seeing with the demographics is consumers below 35 or above pre-COVID, but they’re below last year. And then whereas 55-plus is still below pre-COVID, but they’re similar to last year. So there’s a different dynamic year-over-year where you’re seeing the younger demographic pull back a little bit year-over-year. And then — and similarly, on the income side, we’re seeing that lower income is above pre-COVID but still below last — but below last year, whereas higher income flattish to last year or similar to last year, but they are still below pre covert.
So those are some of the insights I can share on fine dining.
Brian Harbour: Okay. And then maybe just on kind of the labor line. Did you comment on what labor inflation was in the most recent quarter, it sounds like it was like mid-single-digit range. And is there any kind of like slowing in that pace assumed through the course of this year or is it going to be pretty steady or how do you kind of expect that to play out?
