Those won’t show up until our pipeline kind of exhaust itself out 18 to 24 months. So, I just want to be practical and realistic with the listener that even if we took all those costs out today, we wouldn’t get those into our pipeline.
Christine Barone: Yes. And I think the place where we’ve seen a little bit of shorter-term progress is in rally thoughtfully thinking about the equipment that goes into each of our shops. As we have more shops in an area we don’t need extra equipment in a shop and so really being thoughtful about that. I think we’ve also shared our preopen numbers. And as you look at preopening as we have an existing shop in the market, we’re really taking advantage of that to train our employees up and so we’ve seen a drop in those numbers as well.
Operator: Thank you. Our next question is from Sharon Zackfia with William Blair. Operator
Unidentified Analyst: This is [indiscernible] on for Sharon Zackfia. I just wanted to follow up on California wage increase. What is your average wage? And how do you plan to offset it? If it’s price, how much do you think would be necessary? And would you look to protect penny profit or percent margins?
Charley Jemley: So, as you know, the wage is going to $20, we’re in the $16 an hour at present. We have not yet determined what moves we will made from a pricing perspective. But we are actively looking at productivity and other options such that pricing becomes the default that we have to make. And we’re also really looking wisely at whether it is a margin percentage protection strategy or a penny profit protection strategy. And as we get to our guidance for 2024 and we really articulate the full context of that, when we’re finished with our evaluation, we’ll share what our thinking is on that.
Unidentified Analyst: Okay. And then just anything that’s driving the greater — the strength in the franchise versus company [indiscernible].
Charley Jemley: Nothing, I would say, executionally, operationally, that’s different, which would be really the spirit of wanting to understand that question. It’s really just the mix of geographies, etc., where they are versus where we are. But nothing really we can point to that would tell you anything is different operationally between the two groups.
Christine Barone: Yes. And I think the other piece, the sales transfer piece that Charley spoke about earlier is we obviously with the infill that we have in Texas that those are all company-owned shops. So, we do have a greater impact of sales transfer in the company-owned shops.
Operator: Our next question is from Gregory Francfort with Guggenheim Securities.
Gregory Francfort: I have two quick ones. The first is just the investment in the shop manager wages. I’m curious what drove that. Was that just maybe compression versus crew wages over the last 12 to 24 months? Or any other reason for that investment today?
Christine Barone: Yes. I think a number of things. I think for us, it’s really important to stay ahead of the market and where we think investments are needed. And one of the big things we’re doing is in order to continue to get great folks ready for that next level, we’ve looked at responsibilities in that role, and we’re thoughtful about making some changes to responsibilities in those roles and wanted to reflect that in some of the added pay. We also thought we had an opportunity to align incentives with the revenue growth and with thinking through the profitability of the shops. So, we made those changes for those reasons. And I think as we look at kind of the strength of our performance and where our shop managers were, this felt like a great time to make those investments.
Gregory Francfort: Got it. And then maybe just a follow-up there. What were the changes in metrics in terms of the incentive? Is it you’re incentivizing more on the bottom line or the top line than you were before?
