From a margin perspective, our payments business will be accretive to our operating margin now — close to now. So we are seeing a lot of growth, because we really — we’re selling it through our same sales team, right? And we have one sprint team that works on it from a product perspective. I think the gross margins are going to take a little more time just because we’re growing into the infrastructure cost. But it will no doubt be a big driver of our gross margin growth over time just because the revenue is coming in and we’re not adding a lot of cost here. We account unlike our competitors on a net basis. And so on an apples-to-apples basis, we can make a revenue growth look like it was twice as big or whatever 10 times as big on a payment basis, because we’re giving you the true net take.
Charles Nabhan: Right. Got it. And I want to follow-up with the earlier question around guest engagement and MENU. The 8% growth, obviously, some of that is attributable to controlled churn, just wanted to get a better sense for how long that churn is going to take place? And how we should think about the normalized growth rate of that business, if there is one, as well as if you could quantify the impact of the churn this quarter, I think that would be helpful as well.
Savneet Singh: For the year, our churn is around 5%. So it’s not been a high churn here. That’s kind of our normal churn. So for us, how do we get the growth engine going? And I think Q3, we had a really great quarter as it relates to car, signing new logos. Q4 looks really good. We’ll know in the next six, seven weeks here if that ends up, and that we’ll get the growth engine going, where I think we want to get this thing much faster growth than where we are today. But this will also be the area, I think you’ll see us be acquisitive because we need more products to pump into the front of the house, and this will be coming from that side of the place. So I think you’ll see us be acquisitive in the part of the market, but also we are winning really good deals here now. And I think that’s a testament to our leadership there. So that is starting to churn. And again, the churn has been 5% for the year. That’s kind of where we want to be, year-over-year, good numbers.
Bryan Menar: And for both of those products that are in that business area, they were both at an inflection point this year, right? As you mentioned, with MENU, making the transition strategically holding off and trying to grow international where they were originally when we acquired to getting it ready for North America, which has, obviously, you can see we’ve done here with this most recent win, and so it was getting ready for next year’s growth and going forward. Similar with Punchh where we’re hitting that kind of inflection point of where it needed to continue to set itself up for continued growth going on, and the fact that we’re seeing more usage in the product as our current customers are using it more and more and seeing the value in it.
So it’s getting that product stabilized for that. So we were not really hitting the guest on the growth engine for those. So it was kind of making sure we manage the churn during that year, knowing that we’re going to have a low growth year.
Charles Nabhan: Got it. Appreciate the color, guys. Thank you.
Operator: Thank you. One moment for our next question. Next question comes from the line of Patrick Mcilwee of William Blair. Your line is now open.
Patrick Mcilwee: Hi, guys. Thanks for squeezing me in. I just had one more question I wanted to get in here. So last quarter, I think you said you had a few sizable deals in the pipeline for MENU and safe to assume BK was one of them. So I just wanted to ask how your pipeline there looks now, are there any other sizable deals we could expect to flow through in the coming quarters? And could we reasonably expect any of those to drive divergence in the profit trajectory from where we stand now?
Savneet Singh: For Sure. So BK was one [indiscernible] what I mentioned on this call. It was another big chain, really fast cringing — press chain. We’ve got more around the corner. So — the challenge for us is actually not winning business here. We’re winning business. If you think about it, we’ve already won 1,100 stores will add more this next coming quarter. We’ll be compared to our big peer in the space, we’re not leaps and downs away from what they had in a year now. And so it’s coming. For us, the challenge is really getting the product out the door because I just said we so rapidly brought this business in the United States. We need to make that investment. That’s what we’ve been doing. So the way the business hasn’t been a problem.
It’s a superior product. And want to integrate into Punchh, it’s an incredible experience. It’s getting the product out the door. So I think you’ll see some of that happened in Q4, a bunch more in Q1. And then we hopefully have some nice flow-through of payments revenue that comes through that as well.
Patrick Mcilwee: Very clear. Thanks, Savneet.
Operator: All right. Thank you. One moment for our next question. Next question comes from the line of Andrew Hart of BTIG. Your line is now open.
Andrew Hart: Hey, Savneet. I just want to follow up on that comment you made about M&A being your number one priority. I guess, when you think about it, what boxes do you want to check? Is it just thinking about building scale? Or is there a specific capability you’d like to acquire or focus on a region? Just want to unpack that where your focus is the most.
Savneet Singh: Yes. So it’s always product based, right? Everything we’ve done so far, we’ve taken a product been able to accelerate the revenue growth and create a better customer experience. The acquisition menu allowed us to make Brink better but also Punchh better. The acquisition of Punchh made us allowed – made Brink better a lots of things like one-tap loyalty with payments. And so we focus on there. The areas that I think, like as I mentioned, you’ll see us, I think, be active on the guest engagement side, where we want to ramp up the revenue bit growth there. The other part I would say is for market share. I think PAR continues to perform and outperform our peers. And in this environment, we think it’s a really good idea for us to take advantage of that by being acquisitive, bringing those businesses in-house.
And again, given our ability to control costs to value. So I think it create value. So I think the market share is the other part we look at, which is how do we get faster market share because we know that as we add logos that we don’t have today at PAR, we can then take our logo and penetrate with additional products, creating tremendous value on the cross-sell question that someone mentioned earlier. So we’re seeing that. And then the last part, I would say, is new verticals and geographies. We are getting pulled into new verticals and geographies at the time. And oftentimes, our answer is we’re not ready for that yet. But with an acquisition, we could be there and we can move quickly. So those are the three parts that we’re looking at today.
