And so yes, that’s been a change. But like we said earlier, we do expect a very strong development year. Even the midpoint of the 11 to 13 is 24% unit growth. And we do very much hope to be able to give you updates and upgrades on that…
Jeff Uttz: Our pipeline is really strong, Jon. And Jimmy talked about the seven under construction and beyond that, we’re not talking any further about that other than the guidance that we’ve given, the 11 to 13, but the pipeline is very strong. And we have no concerns about being able to meet our guidance. And like Ben said, potentially, hopefully, raise it in a future call.
Jon Tower: Got it. I appreciate it. And then just — sorry, I guess, mechanically, thinking through the rewards revamp, are you anticipating — and I’m uncertain as to how this is going to impact. But in terms of redemption, are you anticipating any bit of a comp headwind from the rewards revamp that you’ve added in mid-October?
Benjamin Porten: No. It should not be a comp headwind. If anything, it will be a comp tailwind. I mean that’s why we’ve been focused on it.
Jon Tower: Cool. And then just the last piece, I know the robotic dishwasher that’s encouraging. Glad to hear that it’s going to be making its way here at some point in ’24 and into future windows. Can you maybe give us an idea of like what sort of incremental costs that might be, at least from a CapEx standpoint? And then perhaps if you could frame any sort of labor savings you’re expecting from this over time?
Hajime Jimmy Uba: [Foreign Language] [Interpreted] So we’re still — it’s still the pilot model. And so there are probably going to be material changes and changes in the materials for the robots between the pilot model versus the mass production model. But the ROI, I mean, it’s an extremely low bar for us to clear. It’s really going to be a slam dunk and we’re really excited about it.
Jeff Uttz: Two important things to remember, though, on the robotic dishwashers is that we don’t expect any labor impact this year because it won’t be — it will be fiscal ’25 or beyond. And then the second thing to take note is it’s going to be started in the new units only because our existing units for the most part are very efficient in terms of space in the kitchen. So these dishwashers most likely not be able to be retrofitted into our existing kitchens. So we’ll start doing new construction to start.
Benjamin Porten: And to provide additional color on the labor impact. Right now, in most of our restaurants, we have two full-time employees working as dishwashers. This would reduce our labor needs to one full-time employee and the burden for that employee would be lessened as well, which helps with retention. And so all around, it’s very exciting. We’ve mentioned in the past earnings calls that we think the overall impact is going to be greater than those three initiatives that we rolled out in fiscal ’22 combined, and we still believe that.
Jon Tower: Great, thanks. I’ll pass it along.
Jeff Uttz: Thanks, Jon.
Hajime Jimmy Uba: Thank you, Jon.
Operator: Thank you. The next question comes from Jeremy Hamblin from Craig-Hallum. Please proceed with your questions, Jermey.
Jeremy Hamblin: Thank you and congrats on a strong year. I want to come back to the sales guidance for the year. And just to make sure I understood in terms of that range that you provided, what’s the implied same-store sales embedded within that? Is it kind of like in the 3% to 5% range?
Hajime Jimmy Uba: [Foreign Language] [Interpreted] So we don’t provide comp guidance. And so we can’t really get into it right now. But the revenue guidance that we provide contemplates the 11 to 13 units as well as what our internal comp expectations are. And as we mentioned before, there’s ample opportunity for the number of stores that we’re opening to go beyond that 11 to 13 that we’re saying, which would have a concurrent impact on our revenue guidance as well. And so we’ve got a lot of things to look forward for this year. Just as a closing note, though, the 9.5% full-year comps that we had for fiscal ’23, we aren’t expecting the same thing for fiscal ’24.
Jeremy Hamblin: Got it. And then I wanted to ask a question here on margins. So you had preopening costs for over $700,000 in the August quarter. And in terms of — I want to understand what kind of the average preopening cost per new location was. And then number two, do all those preopening costs fall in the other operating cost line item? Or are they sprinkled in between, let’s say, your labor, occupancy and other operating costs?
Jeff Uttz: Yes, they are sprinkled between them. So for instance, we opened 1 store on August 31, the very last day of our fiscal year. And so we’ve had employees trading for that restaurant for a month or so, maybe longer, and that’s a lot of that — that falls directly on the labor line. Otherwise, the majority of the costs would be noncash rent that we start booking upon receipt of the premises. And so that’s typically 150 days before opening. And so yes, the elevated preopening costs, that makes total sense. We opened four restaurants in Q4, we opened four restaurants in Q1, and so the preopening costs for Q1 are falling on Q4, et cetera. And we do expect to leverage those preopening costs, too, as we continue to open restaurants in areas where there’s already other restaurants.
Then our new employees can drive over to the restaurant that’s right there to be trained rather than having to travel further to be trained. And same with our — the managers as well for their training, won’t have to fly all over the country to have their training, they can do it locally.
Jeremy Hamblin: Okay. Got it. And then just I want to come back here to restaurant-level margins. In terms of what your expectations, it sounds like you feel pretty good about where your food costs are for the year. It sounds like you feel like labor is — hourly wage rates are more under control, although your menu pricing is down pretty significantly from where it was in June. Is it something where you’re expecting your restaurant-level margins? Let me ask the question in a different way. What would your — what do you think that your comp needs to be for restaurant-level margins to be flat or up slightly in FY ’24?
