Korinne Wolfmeyer: Very helpful. Thank you.
Operator: Thank you. And our next question coming from the line of Dana Telsey with Telsey Advisory Group. Your line is open.
Dana Telsey: Hi, good morning everyone. As you think about market pricing, how do you think about it this year as compared to last year? How do you think of pricing whether it’s for Wax Pass for different services and given that you set the market pricing any changes that you expect as we go through the year? And then I believe that one thing you are working on was launching a new center opening playbook in this upcoming first quarter. Where do you stand on that? What will be the differences? And is there a different cadence this year of the timing of new center openings versus last year? Thank you.
David Willis: Hey, Dana, this is David. Let me start with the NCO playbook and then I’ll hand it off to Andrea on pricing. So I think we’ve talked on prior calls that we’ve been studying new centers that have opened over the last couple of years that have performed the best. We’ve refined our playbooks. We’ve made additions. These are not wholesale new written playbooks, but in some cases we’ve dramatically modified. These modifications are informed with data to be a bit more prescriptive on the pre-opening spend requirements in the channels where our franchisees should spend, all of that is important to ensure that they open with the requisite number of new guests in their file on day 1. We also want to ensure post day 1 opening that they continue, what are the marketing activities and the digital channels they should be using to ensure they can continue to drive momentum.
And then finally, we’ve analyzed kind of the both the headcount numbers and the levels of experience for our wax specialists and our center managers and we’ve seen so we’re being more prescriptive on what does the staffing model need to look like in day 1, what does it need to look like in month three and month six. Ultimately, these centers have driven higher sales and greater predictability versus the average benchmark and their just faster revenue ramp. So we dialed out the playbook, we shared that this was coming with our franchisees at our Vegas Conference a couple of weeks ago. So we will be rolling this out across the network this year. As it relates to pricing, as you know Dana, we always evaluate this. And when we make a recommendation to our network, it’s typically informed with either guest survey work or price elasticity work as it relates to the things we’re looking at in 2024, I’ll pass it over to Andrea to address that.
Andrea Wasserman: Sure. Hi, Dana. So in thinking about what the network needs to hear from us in terms of pricing insights, we’re obviously looking at past trends for how the market has reacted, how our target audience has reacted to price changes. We’re looking at the latest transaction trends, certainly thinking about our costs as well as very, very importantly four wall margins for our franchisees and then also thinking about what the rest of the market may be doing and what elasticity as David said, we think that there is at this time. So we’re always looking at that, always pulling in a wide array of data points to determine what insights we want to provide to our franchisees. Dana, I think you also asked the question about the timing of the new centers. And so it will be back half weighted, a third roughly in the first half and two thirds in the second half. And then we also talked about Q1 that we expect to open seven net centers.
Dana Telsey: Thank you.
Operator: Thank you. One moment for next question. And our next question coming from the line of Simeon Gutman from Morgan Stanley. Your line is open.
Simeon Gutman: Hey good morning everyone. First question, Stacie, the extra weeks that we had, are you suggesting that sales and EBITDA are the right way that they were even or is there a greater EBITDA contribution? And if you could just remind us why do we have 53 weeks, two years in a row?
Stacie Shirley: So the contribution, yes, I think rough estimates is about an average, an average fourth quarter week is what we’re using for kind of top line and bottom line guidance. And the reasons we had it for two years, I was not here for that. David, this was just get on to a regular retail calendar. This first year was do you recall what that?
David Willis: I think the second year was just aligned with everyone else’s retail calendar.
Simeon Gutman: Okay. No worries. It’s a minor question. The other one, this is back to the 2.5 comp, which you’ve gotten a lot of different ways because if 75% of your business is relatively recurring, trying to think about it in different buckets, meaning is the Wax Pass customer, is it frequency or is there some ticket? I know you mentioned we’re not — we don’t explicitly think about it that way or ticket. Trying to understand what is driving the business. Is it mature versus immature stores? Any other breakdowns that you can provide?
Stacie Shirley: Well, so as is typical when we look at our comp, I mean the ramping centers are the biggest driver of that comp as we move into the 13th month. So that we would expect to be continue in just the New Year.
David Willis: No, Randy, I mean, you’re familiar enough with our model. Ramping is usually has an outsized impact on the overall comp in terms of the number and we’re expecting this year that the ramping centers will be a bigger contributor to the comp than the mature centers.
Simeon Gutman: Okay. Thank you.
David Willis: Sure.
Operator: Thank you. And our next question coming from the line of John Heinbockel with Guggenheim Securities. Your line is open.
