Andrew Wiederhorn: Absolutely. We tend to see higher average unit volumes when there is co-branding. You can see 10% to 20% increases in your overall sales when you have the brands together because it gives you menu diversity. Today, we have about 280 co-branded locations. It’s a combination of about 180 to 190 cookies, ice cream and pretzels, some combination of the two out of three of those. And then there’s almost 100 Fatburger and Buffalo’s Express locations that are co-branded. And that’s been very successful. It was our first co-branding back in 2012. And here we are 11 years later, and we’ve got over 100 of those. And there’s — of the franchise pipeline of 1,100, a significant portion of that pipeline, somewhere between 1 and 200 stores have co-branding attached to them as well, certainly in the burger space, doing burgers and chicken wings together works really well. Cookies and ice cream together works and pretzels works really well.
Roger Lipton: Right. Presumably, the franchisees weren’t born yesterday in terms of their inclination to do this. Nobody is forcing them. So the fact that they’re stepping up speaks pretty well, I guess, on the prospects.
Andrew Wiederhorn: It’s a very modest incremental equipment investment for a pretty decent increase total sales average unit volume number. So it’s a smart investment by a franchisee.
Roger Lipton: Right. And relatively, the productivity of the built [ph] facility in Georgia. You’ve made some good progress there, now supposedly 40%, 45% run rate. What would you guess you can do there in terms of a percentage of capacity in ’24?
Andrew Wiederhorn: Well, there’s two things which I want to be careful not to confuse you on that I think you’re going to find very positive. If we find another dough making business or cookie business that we can add into the portfolio there that will take utilization from 40-something to probably 60%. And when we’ve talked about long term selling that business to another food manufacturer and then getting a long-term contract for our franchise partners, and using the proceeds to reduce debt. We think that, that makes sense and a lot of the potential buyers in the market want excess capacity for their own products or to move other cookie dough business into our plant and then that frees up another plant for them. So that’s one point.
The other point is for a very modest amount of money, somewhere between $1 million and $1.5 million, we found that we can basically double the capacity of our existing facility before we even knock down the wall and take advantage of the extra 3.5 acres that we have. So basically buying bigger mixing machines will take that 40% to 60% capacity or utilization start to cut in half and just give us that much more. So we just have a tremendous amount of available utilization available capacity at that factory. And that’s what people in the marketplace are looking for, and so it will spur us to have some discussions about that in the coming year or two.
Roger Lipton: Okay. Lastly, for the moment, can you give us any rough guidance in terms of the timing of the IPO for Twin Peaks?
Andrew Wiederhorn: Well, given market conditions, I think it’s hard to say whether this will be 2024 Q2 or Q3 deal or whether we’re better off waiting and letting the market window really open where we see a little bit more of a return to normal. The good news is that the Twin Peaks brand is killing it in terms of growth and new store openings. And while they’ll have opened it to somewhere around 111 units this year, there’s another 20-something stores for next year and the year after and so on. And we have the locations. This isn’t like we’re saying we’re going to open them, but we’re not sure if we can find a spot, if we can find a franchisee. We have 125 committed franchise units in our system with franchisees obligated to build stores next year and the year after.
