RRGB
#Thanks, <UNK>.
Well, first, Texas is almost exclusively a franchise market for us, and they are doing very well.
Secondly, each one of our major largest franchisees has a transformation complete or in the process.
They are seeing obviously future opportunity there going forward.
I think that some acquisitions we made may have taken some lower volume restaurants out of the franchise base, which again helps on a year-over-year basis.
Yes, if you look at overall what we're cycling over, is really I think where I'll start with.
The benefit of mix last year that we had from ---+ particularly from Finest ---+ was over 2% of our comp increase related to mix.
The mix benefit that we had in the first quarter was a little bit Finest and Crab Cake, but also continuing some more appetizers and alcoholic beverages.
Our alcoholic beverage mix continues to grow, as well.
If you look forward, we're cycling over pretty strong growth.
As <UNK> said, we're trying to put menu items out there for our guests that they can enjoy and add on themselves, and not trying to force mix all to itself.
If we put great menu items on there, our guests will come into the restaurant.
They may see the $6.99 everyday value menu item, come in, trade up to Finest or other entrees on our menu.
That will continue to drive mix for us.
Driving mix this year's not going to be a big driver of sales.
It's going to be really primarily comp growth associated with the brand transformation remodels.
<UNK>, as you know, we began screening our movie titles this year.
We have a high level of confidence that the product that we've picked this summer is going to do very well.
We'll give you some more details about that at the Q2 call.
But we do think the box office does have momentum, which is also good.
We think we've got a good program for Q2 as it relates to this burger and a movie promotion.
Thank you.
Menu price, and I didn't, in the first quarter was about 1.4%.
Hold on just a second.
Total CapEx was about $31 million, $32 million.
We continue to see a lift.
If you look at our guidance this year, we've assumed we're going to get a gift card lift continuing of about 10% to 15%.
As <UNK> mentioned, Mall Cop 2 performed from a sales standpoint as well as Godzilla, which from a profitability standpoint, does really well for us.
We're continuing to bring new news into our gift card program, and that just continues to grow.
Yes, I think the piece you're missing is ---+ and I touched on it in my remarks ---+ is you've got about $5 million of new restaurant CapEx related to 2016 openings.
That's probably the other piece of it.
Yes, and then the cost per re-model, if you look at overall construction inflation, and you saw the housing numbers this morning.
Construction inflation I think is going to continue to pick up.
As we move more towards the east coast and northeast, we may get more impacted by more union labor areas, so I would expect there to be probably 4% to 5% inflation on that.
Yes, it's more the Red Robins.
The Burger Works, we opened up three of those in the first quarter.
The other two of those will probably be in the fourth quarter.
It's just ---+ it's amazing, the things we had.
We had two restaurants delayed this year where our landlord had to get approval from another tenant for us to go in there, and the tenant's general counsel quit, and that added four weeks to getting approvals.
Those are the types of things we're facing this year that are a head scratcher, but yes, that's the cause of it.
Thanks.
I think overall if you look at the unit economics, <UNK>, AUV ranges will be dependent upon the location ---+ call it $1.1 million to $1.5 million.
The restaurant level margins overall, sort of what we're targeting, will be upper teens.
If you put that together with a build cost of $600,000 to $800,000 depending upon the location, you'll get a cash-on-cash target of somewhere around 30% or mid-teens IRR.
Sure, Bob.
We've been testing Ziosk for several years, if you look at our franchisees' experience in Lehigh Valley.
It's consistent with what you've heard from other folks there.
The single biggest paying point it brings for the guest, which is significant, is the ability to pay at the table.
The guest is not held hostage by their check, which all of us know as consumers is irritating at best, and very frustrating at worst.
Secondarily, we get some ---+ literally some labor savings as you look at the server not having to go over to a remote POS station with a card and then come back.
It seems trivial, but when you look at all the times that happens in our system, it adds up.
We think that one of the things Red Robin has and we're very proud of, and we know we have opportunities to reinforce, is our bottomless proposition.
We know our bottomless proposition is really important to guests, whether it's fries, root beer floats, or broccoli.
Ziosk gives the guest the ability to order their bottomless refills on demand.
We think that's great, because we want our guests to take advantage of that, because we know what a powerful value and brand enforcer that is.
Then I think last, but not least, there is an opportunity for us to completely engage our servers with it, and make it part of the Red Robin experience.
We've got some basic back-of-the-house work to do from a technology standpoint, as a contingency before we can roll Ziosk out, which really drives the Ziosk roll-out into Q3 and through the balance of this year.
Yes.
Well, you remember the old pre-remodel Red Robins had a bunch of arcade games in the lobby, which is not exactly what you wanted to see in your Match.com first date.
We think that the ability for parents to engage with their kids in the family dining experience is a positive.
We need to make it clear that there's a charge for that, and we think that some parents love the fact that they can connect with their kids during the dining experience.
Other parents love the fact that they can disconnect from their kids and put them onto a game.
That choice is important, too.
If you look at it, it's some former employees of one of our franchisees, our franchisee in Pennsylvania suing the franchise group.
It's litigation that they are involved in.
It's not something that we're involved in.
Completely inappropriate for us to comment.
Thanks, Eric.
We appreciate everybody's time and attention this morning.
Remember, we'll be back in Q2.
Thank you.
