Kelli Valade: Yeah. So great question, Todd. We are absolutely excited. The opening has done well, as you said, already mentioned, so above expectations. And, you know, I think we mentioned on the last call, didn’t get into it in as much detail this time, but we didn’t open wood patio or our liquor license yet. We’ve got those things to add. They’ve been fully vetted and tested now in the rest of the system. So those other levers to pull that haven’t yet even begun to be in, in the mix in Hendersonville and in the Tennessee market. Next one coming up in Tennessee. So we’re really bullish about that market and the response we’ve gotten so far. Beautiful design, food, the net sediment scores I mentioned in my comments, but they are absolutely phenomenal.
And the team is working through a lot of different things in terms of ways to look at the existing fleet in the way of a remodel package where we can take the learnings and the things that we’ve seen that have been really positive from the guests, really new positive aspects in the design and pull those into the Florida market. Those franchisees are incredibly excited. It would be the first time there would ever be a remodel program for the small but mighty brand at Keke. So there’s a lot of excitement about that, as well as excitement for the work that is being done around alcohol that has been testing patios. Gallatin will open with a full patio and it’s just a beautiful, absolutely beautiful building. So the learnings are absolutely there.
We’ve got lots of people talking to us about it now that we’ve got these kind of learnings from Tennessee. So the interest is still there, the conversations are there, and we expect to be continued talking about the pipeline strengthening.
Todd Brooks: Okay, great. And then just a follow up about the potential to remodel the fleet in Florida. Do you have a rough idea on what the remodel cost might run to get those units to have at least the elements that you could work into those older boxes from the newer design?
Kelli Valade: Yeah, great question. We’re pretty early at this point, and again, pulling the most, you know, the most appropriate elements to bring into a lot of inline locations as well. So we’re kind of wrestling with what does it look like inside? How do you. It’s really going to be paint and new colors and brightening it up and then still having some of those same things that are signature for Keke. We’re still early in designing that, and we’ll test that at our Dr. Phillips [ph] location pretty soon, but not quite there. I’m just having that full package figured out.
Todd Brooks: Okay, great. And then my second question, I’ll hop back in queue. Menu innovation pipeline. And you talked about levering the new kitchen equipment more and more going forward. What does that look like? Does it go item by item, or do you see new platforms that you’re experimenting with that lever, the new kitchen equipment. Is there anything we should be watching for? I guess from the menu standpoint, that could be another incremental driver to that list of same store sales drivers that you laid out earlier. Thanks.
Kelli Valade: Sure. I mean, what I can tell you is that what we are doing is looking at the menu holistically, looking at the obviously always being mindful of the equipment, the simplicity and the consistency that that equipment offers. But there are a couple things that you will see us do that kind of look at the menu and our strengths and things that are signature for us while balancing that with things that we can use our menu, our kitchen modernization equipment, for. Nothing that I probably would want to add just yet in terms of what the pipeline looks. But there’s some pretty exciting things that we’ve got for the back half of the year.
Todd Brooks: Okay, thanks, Kelli.
Operator: [Operator Instructions] Our next question comes from Nick Setyan with Wedbush Securities. Please proceed with your question.
Nick Setyan: Thank you. Just a follow up on the co op. Just to understand correctly, is it an actual increase in marketing spend overall, or do we just shift 50 bps osfrom national marketing to local marketing?
Robert Verostek: Yeah. For clarity, Nick, it is an actual increase of 50 basis points. Again, we are shifting a half point out of national to get to boost the total local spend to a point, but it is an actual increase in total spend from 3% to 3.5%.
Nick Setyan: Okay. Okay. I guess we’ll just take it offline to understand where that half a point comes from exactly. And then just around sort of some of the, you know, add back from the company online. Or maybe just kind of, if we step back and just think about EBITDA, if we were to keep it apples to apples to how we talk about how we used to talk about it, what would the new EBITDA guide equate to?
Robert Verostek: Yeah, so, Nick, we tried to take that into account, into the new range there. So it is now for ’23 This new definition would have led to approximately $89 million. The current definition now is 87 to 91. So that new midpoint is about $89 million. And we adjusted our guidance range upwards to account for these changes that I described in our prepared remarks. And just taking somewhat of a step back, the reason for this is many conversations, particularly post our earnings releases. We were running into too many conversations in which analysts and investors were going, you’re not as comparable as we would like to see to others of your peers, and it’s somewhat difficult for us to understand your definition in comparison to your peers.
So we were really trying to take into account both of those, making this easier and more comparable to our peers within our investor presentation, Nick, we do have a reconciliation dating before this new definition all the way back to 2018.
Nick Setyan: Okay. And then just last question. You know, it does sound like you’re already seeing an acceleration in comp trends, you know, versus the Q1 comp. Any way to, you know, maybe bracket what you’re seeing in April quarter date?
