And that’s why having an amazing, I would say second to none operation team is important. We do have pretty dedicated and a good balance of how many items we sell in a store and what’s the impact on the COL. And most important, what’s the quality of food that we can protect in order to deliver in the short term and long term. Thank you, Ethan.
Ethan Wang: Got it, that’s great. Thank you, Andy. Thank you, Joey.
Joey Wat : Thank you.
Andy Yeung : Thank you.
Operator: Your next question comes from Xiaopo Wei from Citi. Please go ahead.
Xiaopo Wei : Morning, Joey and Andy. I have a quick follow-up question on restaurant margin. In the third quarter, did you see any widened divergence of the restaurant margin of high tier city versus low tier city? And also Andy, in the prepared remarks, he’s playing a lot about – we are having concession rent for new store, etcetera. Looking forward, shall we expect our occupancy and other expenses to sales ratio to keep low, because in the past two years, this has been very good factor to mitigating other inflation component in the restaurant margin? Thank you.
Andy Yeung : Thanks, Xiaopo. So in terms of the difference, I think there’s not material changes to the way margin actually pan out as we have mentioned before. Obviously in tier one cities, tier two cities, the high tier cities, generally those stores have higher throughput at the store. And but generally you have a slightly lower margin, because high cost, labor and rent. And then in low tier cities, although you have a smaller throughput through the store, generally cost of lower labor and all that, so the margin is slightly higher in the lower tier cities. But on all, because also their investment, I think investment is different in different tiers. So we end up having a pretty good payback period for both top tier and the lower tier cities.
And so that’s in terms of the variance between margins in different tiered cities. Now in terms of O&O, I think as we have mentioned, obviously last year we have some temporary relief, but all-in-all, like O&O, even including those, you see continuing improvement there. Those contract are longer term contract, and when you get favorable long term lease, you’re going to have favorable long term impact. And then we also have other cost structure initiative and portfolio optimization. So I think O&O improvement would stay, but obviously that’s also in terms of how low it can get right, no one’s going to give you free rent. But I think in the long run, I think we’ll continue to see pretty healthy O&O as a percentage of sale.
Xiaopo Wei : Thank you.
Andy Yeung : Thanks Xiaopo.
Operator: There are no further questions at this time.
Michelle Shen: Thank you for joining the call today. For further questions, please reach out through the contact information in our earnings release and our website. Goodbye.
Andy Yeung : Thank you.
Joey Wat : Thank you.
Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.
