EAT
#Well, we think that consumers are interested in transparency and having options, and so we will continue to build out our food pipeline and innovate around that belief.
Some more ---+ we will do more with these kind of ideas.
Whether they're ---+ what the implications are and in the menu, it will depend on how aggressive we want to get with that.
And so I can't really give you a message there.
We're committed to keeping our business model intact.
I can say that.
And we're charging a premium for the grass-fed patty and having no problems with it and guest feedback has been outstanding.
So we will continue to, as we get more and more involved in this journey, to understand where the consumers' heads are at and what the appropriate level of pricing is for some of these products.
For this quarter, it was a little over 3%, just reflecting timing of some minimum wage changes.
And the guidance is slightly below 3% for fiscal 2017.
Well, first, the absolute number ---+ whenever we put a more concentrated server driven initiative out there, we pop it a little bit more, <UNK>, from an absolute standpoint.
We see those a little bit of a bump up, but the relative improvement over prior year has continued.
So we are selling ---+ doing a better job every day with what we offer and our operations teams really getting out there and getting their team excited about the innovation that we're bringing.
We really are encouraged by what we're seeing in the handfuls of restaurants that we have rolled out the craft beer initiative in.
And so as we accelerate that through this quarter and hope to have almost all of our restaurants with almost double the number of taps with craft, local craft beer offerings, again, those are the kind of things that we don't have to add labor or servers to get excited about those products.
The consumers get excited about having those products available at Chili's and that's another source we anticipate and are counting on continuing to improve our alcohol mix.
No, we have ---+ our servers have plenty of time to do that.
With the introduction of Ziosk, for example, a lot of time that the server spent getting the check and running back and bringing it back to the guest to cash them out, that all happens now by the guest pretty much and frees up that time for the server.
So we have opened up opportunities for servers to have more time with our guests.
It also has allowed us to be a little bit more efficient, but as we leverage technology and we figure out how to merchandise effectively, we feel like our guests' and our servers' interaction hasn't suffered.
And of course we track it with, again, with all the feedback that we get through our 25% of our guests that give us guest satisfaction surveys every day.
We have a pretty good sense for are they having the kind of interaction we think we need to continue to have to make people feel special and to drive that intent to return number to where it needs to be for us to be successful.
We are looking at a rent-adjusted leverage, so that would be an EBITDAR base.
And it's currently running around any given quarter 3.25, but another half a turn to 3.75.
And those are ranges, so they can vary, but that broadly is some direction.
With regard to transparency and where the supply chain is, I think it's coming along.
I think the consumer is forcing the supply chain to move itself to a point where more of the products that certain segments of the population are interested in are available, not just in grocery but also in various restaurant environments.
So, that's encouraging.
We're working with partners and with actual growers to say, hey, listen, this is the kind of thing we're hearing and seeing and we need to have those alternatives for us.
And again, I think the grass-fed patty is a great example of us and our supply chain team finding a supplier that can make that available to us.
And I think there will be this transitional period to some degree around is it a full swap out or is it an option like we're making available now within the burger category as consumers weigh the costs associated with some of this product, which can sometimes be a little higher.
And then just how important it is for them specifically.
So we think it's moving and we're excited about leading some of that with our partners.
And <UNK>, it's <UNK> here.
On your second question, we're comfortable with our current business model and the cash flow that it generates to support the leverage.
We obviously will continue to evaluate other options over time, but believe the best value creating opportunity now is to continue to drive the Chili's business and this leverage event.
We understood, <UNK> (laughter).
Hey, <UNK>, <UNK>.
Obviously, we have a number.
I'm not sure I want to share it on a call because everyone should be working on their own set of assumptions and I don't really want to give ---+ I'm more than happy to give you it, but I don't want to give anyone else that number.
We'll just leave it to we don't anticipate, like I said, that this is going to be a whole ---+ that the category is going to get a whole lot healthier in the near future.
And so our expectations is that we are going to take share, so obviously we think the category is going to be less than that, and exactly how much softer is kind of everyone's guess.
Yes, I think it's that whole idea of it's not one approach.
So the value message ---+ we are on TV today with, at any point in time, two or three different messages: a lunch message, a dinner message, a brand message.
We've got technology in the mix.
We've got food innovation in the mix.
There's a lot of things that we're bringing to the table ---+ new to-go, the rollout of Olo and leveraging, again, the fastest-growing piece of our business, which is that to-go piece with a much more we think consumer friendly and really it's an engine that we can actually market and push harder.
So, we've got a lot of things in the mix that we think we're going to have to push to stay ahead of the competition.
There's a lot of good competitors out there.
And you're right, everyone ---+ there's a lot of transparency, especially when you're on TV, so there's no real secrets.
It's about who can execute and who's got the resources.
I think that's a big part of who's going to win in the future.
And we have the resources where we've shown our willingness to invest in things and like technology and in innovation and we're going to continue to that.
And so that's how we plan to stay ahead, is to not just rely on one promotional idea like 3 For Me, although it's a great idea.
Okay.
Well thank you, Dave, and thanks to everyone for participating this morning.
I want you to note that our first-quarter fiscal 2017 earnings call is scheduled for October 25, 2016, and we look forward to all of you joining us then.
Have a great rest of the summer and good day.
Thank you.
