Charley Jemley: We didn’t in our script or comments, the comp, I did share the pricing piece as an earlier follow-up question. So, from a comparable sales buildup, we’re pleased with the 4%. We had high single-digit positive pricing, about 100 bps of positive from discount mix net. The estimated sales transfer drag is right inside our range of 200 to 300 basis points. And then the balance of that is going to be our traffic results, building up to the full.
Jeffrey Farmer: Okay. That’s helpful. And then as a follow-up to the broader margin question, which was more of a level margin or shop level margin. Just sort of drilling down on the labor line, it’s — you guys touched on this, but it’s been impressive. I think it looks like at least five quarters that you’ve seen 200-plus basis points of year-over-year capability. How should we be thinking about labor costs heading into 2024?
Charley Jemley: Well, I think a couple of things on that. First of all, what we noted was our investment in shop manager labor that we’re going to make as of November 1. And then certainly, we have the California wage and coming at us as of April 1 of next year and we’ll continue to thoughtfully examine our wage and incentive structure at the shop level and make appropriate investments there. And again, that’s why the 31% margin that we’re showing today is so powerful because it does allow us the flexibility to deal with navigating those things.
Christine Barone: I would also share, we’re really proud of our teams and how they’ve navigated labor. Our broistas are also our sales force. And so, we are really thoughtfully navigating through labor being careful where we spend, but also making sure we’re making the right investments in labor to grow our sales to make sure that we keep our lines at the length that our customers enjoy. And so, I think that it’s a really good partnership with very thoughtful tracking and super proud of just our operations teams for all of the work they’re doing in this area.
Operator: Our next question is from Brian Mullan with Piper Sandler.
Brian Mullan: Just a follow-up question on the stores in Texas. On the last call, I think you indicated those stores were still following the same profitability curve as the rest of the system despite the AUVs a little lower than the system average. I’m just wondering if that still holds true today, whether you think that would continue to hold true as you look out over the next, I don’t know, 12 months? And then just related to that, can you just talk about how you plan to approach development there next year? Will you still be opening more stores in Texas next year?
Charley Jemley: I’ll go reverse first. We will open more shops obviously, in Texas next year. The pace at which we open in Texas won’t change dramatically. The question about productivity of new shops. So, on a like-for-like AUV adjusted basis, our newer shops, like volume, new shops are more productive than existing shops. And that’s — as we’ve moved east, we benefited from lower operating costs on average than our existing West Coast markets.
Brian Mullan: Okay. And just to follow-up, last call, I think, again today in the prepared remarks, you mentioned potentially value engineering the cost of the prototypes, which is exciting or interesting to hear. But I’m just wondering if you could discuss any progress has been made on that front. How far along are you on that work? And why you expect to see some benefits to the system from un-development?
Charley Jemley: So, there’s really three ways to get our investment down. One is the mix of molded suits and ground leases, more build-to-suits takes down your upfront investment. There are prototype changes. There are freestanding units or looking at in-line end caps to bring your total capital cost down. And then there’s just like-for-like on the natural prototype itself, taking costs out. We have made some progress taking part of that cost escalation out, but we’re realistic to know that we won’t get any significant measure of that cost back. Thirty percent to 40% escalation would be hard to get back. But we are working diligently to cut around the corners we can to take a portion of that out. And we have some good ideation on that and things in motion in our prototypes.
