BJRI - Earnings call transcript Q4 2020

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Operator

Good day, and welcome to the BJ’s Restaurants, Inc. Corporated Fourth Quarter 2020 Earnings Release and Conference Call. Today’s conference is being recorded. At this time, I’d like to turn the conference over to Greg Trojan, Chief Executive Officer. Please go ahead, sir.

Greg Trojan

good fourth and and quarter and Restaurants to webcast. operator, XXXX fiscal investor you, afternoon, welcome everybody, BJ’s Thank conference call I’m Chief BJ’s Greg Executive Trojan, Officer. President today me Greg the joining Financial call And Levin, on our and Chief Officer. is

December Chief we Lynds, our Officer results XXXX. quarter the released XX, for our We hand and the After of Marketing Officer which fourth our financial have Kevin Development fiscal ended also market on Q&A. Greg Mayer, Chief closed Tuesday, XXXX, today, for

You www.bjsrestaurants.com. our website can text release earnings of view the full on our at

Schirmer, Our environment. standard agenda will provide today up and After our to then will current Director on with our commentary it to disclosure questions. some update SEC start forward-looking our initiatives, quarter with business providing an Greg I and current the will Rana that, provide then Reporting, Levin respect the open statements. of we’ll cautionary on and

ahead. go Rana, So

Rana Schirmer

Thanks Greg.

today comments within call Our forward-looking of XXXX. of Reform the meaning Private statements the on Securities Act Litigation conference will contain the

or by involve results, are are Forward-looking actual not other expressed that that any and reliance factors placed unknown different company guarantees results, uncertainties not implied Investors future forward-looking be should risks, be cause from future performance and that of such of or undue materially or may to forward-looking achievements performance and statements. known the statements achievements statements. cautioned statements performance on

a and statements referred February Investors to result in today’s risks discussion as future associated of as or forward-looking only and date, the filings Our We forward-looking Securities so events forward-looking of Exchange speak contained by or do full publicly XXXX. Commission. required otherwise, the to information, company’s other new statements, the make statements securities obligation with or forward-looking update undertake statements XX, with uncertainties laws. revise the unless are of to any any whether no to

Greg Trojan

again. Thanks, good everyone afternoon And Rana.

November in accomplishments and occurred increase quarter. with dining December, I’m restrictions the the pleased in our team’s that very during the Given broad

strongly limitations As we $XX,XXX with reported XX in weekly sales month rolled system. last know, our state sales dining California for month’s significant you in reopening despite began capacity being November, limited restaurant of in our December the over room takeout restaurants business for dining outdoor which full rooms and Beginning in the across only delivery numerous dining patio our the to in October quarter California XX only. open update, back as early averaging and closed all states seating, in and

more our December per average from As November team to December. and challenges, weekly our face In in to ability growing maximize have control XXXX, quarter. returned of demonstrated increase and in our our positive to this dropped to EBITDA allowing such, October's continued the expenses, government and weekly line, these momentum of generate to again our sales January XX,XXX and operating January, once build average November the XX,XXX and in to outdoor stimulus the first each easing implementation by again at week. helped continued Gradually us along with restrictions has end than of opening California, of and followed dining week. sales the California of to XX,XXX we their sales week in the payments, the in $XX,XXX tightly sales In initiatives past us for of outside top $XX,XXX

optimistic continue to on prepared will protocols vaccination to continue and sales. we improve Although on ongoing we have a are recovery that are be efforts for even, positive the pandemic to impact treatment

seating. dining addition, our our double indoor the maintain of to the advantage take And sales to down and capacity both year we environment running grow in plays will Our improvements benefit the outdoor ability and from past over we maximize efforts have in to learned off-premise to for business. continue

while term neglecting near will to opportunities not years pay the longer ability ahead. our prioritize term dividends the the concept in for Our

term. of harder to challenges, conscious daily the chain with throughout than for the pace ever. all navigated them related also great restaurants this, to to our the these truly stronger of restrictions, in we've operating serve relationships change to we been environment. And of PPE but more priority first operating has has for we've take confront though, advantage the of the Our in opportunity disruptions, regulations, our supply has our great, as improve and number very business etcetera as circumstances this us obstacles than been of to ever build to unprecedented. work challenges a ways long guests, been The been There's

quarters invest our previous we're equity and raise right an growth as that on additional Our We the operations been ramping to building recently chosen investments of Key however, million. months organization agreement, every with add and safely offering outset while brand. make ensuring the this our our our and in a case the up restaurant We ahead. continues is have like last to the through to to raised our extension new mind position will initiatives, execute steadfast the of XX pandemic we opportunistic us to or offering has operators sheet balance bending new in which strong equity not a and market commitment when as the at to us further rules, an do, an muscles to trust at believe and our functional have led adopted of improvements, in right. recent in an and to $XX aspect many flexible negotiation set is credit confidence in the to time enable we operationalizing these prudent is Building the that opening be possible strong along mindset. as million be May virtually operating breaking our

headstart, and approaching. which we investments As a design excuse weather visual in as important tents, made restrictions audio within partitions restaurants are experiencing outdoor easing result, me, quality high and our we've already see experiential heaters upgrades, spring

We're restaurant both to important as made such and restaurants to our in restaurant physical order our better We visibility to enabling off-premise demand, through per off-premise increasingly committed mobile the sales than pacing, its XX% are over pay, to engaging channels. brand technology of levels. digitally friction pleased system recent XX% accuracy more via capacity. execute our averaging and now And this Front $XX,XXX of than better in is have our experience digital sink paid More with We've from week a demand to our order also approximately and see we and and order kitchen for end to been which off-premise in digitally. improve off-premise orders pickup placed our technology pre-COVID drive reducing are is our maintaining dine-in kitchens guests base. weeks, checks to helping improvements also remain convenience double also provide with our our growing guests.

digital alert more curbside now functionality using Additionally, guest easy that our check XX% to in are orders has the arrived. us of than

Our convenience of building our and surely fourth sales the with guests In quarter, innovations after pandemic our that increase initiatives. passed. strides we reduce has the remain longer also well friction epidemic on several will term good popular made

they with Members We're guests our promote their and taking continued our First, enjoying award our membership the both creativity. and excited increase BJs. releases program that to class advantage beer, our the visits love program's with and brewing benefits program winning beer to to and beer were world show to closer promise. engaged connections further skills very the special of club build

of bronze brewing California American Our at into was Coffee best other the which plan and next to Beer from beer includes couple our Chocolate restaurants R&D the are Blonde, beer our Stout, medal the club pipeline our year. Bourbon a awarded of in some states our this recent team, evaluating Barrel most Great including the most Festival. and We launch of in later months, our expansion

last the over X.X Next, the of quarter XX called build concept testing centric ratings month. continued a began to and our averaging slow-roast products. out featuring week only stars. other delivery we week Slow-Roast brand X with were our our virtual a This menu to is expanded fourth Sales protein test and focus and guest restaurants in

results test ensure and to while monitor we're continue incremental will early building this promising. our maintaining closely But are We profit kitchen efficiency. to sales

potential Finally, the We're have extraordinarily to impressive catering very for the significant in and seen large our against our this menu catering we September battle growth boxed orders COVID. individually proud We some added including continue to business fight meals demand, believe helping pandemic. in business. the in from their of role frontline leading companies small workers

remain Merrillville, at Indiana pandemic. Our new growth. the committed in to located under restaurants us to strong were outset already restaurant the in Lansing, to XXXX We two Michigan, limiting our opening which growth construction the also balance sheet of enables accelerate

meaningful real confident open when way. new our take will we more continue locations to we While does, believe reset attractive any time estate it the landscape to in it concepts. are for up will for it But

a work making we opening the In more in regard our While XXXX commencement the look new related environment to about improve do until investments new When only. is new standing spending and real assembling ranked leases regard we and cadence in addressing our we're beyond, there's potential differentiation robust committing from concept. realizing pandemic. toward time flexibility regarding to we resuming cautious build expect restaurant commence at and in emerge we a are defense to not an team of opening summary, this as to That committing leases, being said, forward predictable competitive and our etcetera. day commitments We're we clarity dining point pipeline delays estate to is to clear, more accelerated geographic concept pandemic hard for still playing advantages and to

the to a our standard pandemic us, team navigated to of efforts, their them. new presented with serving Before our be all prouder of ongoing I guests moment not for could challenges wanted of gold to successfully our I and all to their the call commitment I turn take has to have teams service. thank members Greg, over

dedicated and business supporting and performance members a team not would great our while strive future guest every without be goals. to deliver that to recent growth our experience principles Our possible

our some to So it now turn financial I'll over commentary to results. Greg provide on

Greg Levin

Greg. thanks, Hi,

update associated our continue the As state restrictions. discussed is risks are Securities the restrictions largely QX where January in and both commentary with to uncertainties room the XX, date and Commission. reflects capacity limitations. we changing national, to Please be on our with subject forward commentary business statements, my ever local to and sales the dictated and by Therefore, detailed on with looking in filings QX regulations remember, Exchange as regarding and this dining

fall and restaurant Greg delivery As October to for Then rooms comparable limiting closed only of in XX% dinings down located our started and patio November, ourselves to in rebounding are however, states in takeout. numerous open, XXX sales, just restaurants the dining beginning offering. XX.X% our strong XX back mentioned, Trojan seating, with all of outdoor December state dine-in and California, where and to BJ's

As November the comp such and negative in XX% quarter XX.X% XX.X%. down comparable sales decreased sales to with finished and and restaurant respectively, negative December

for QX Our loss basis. were million in total of on $X.XX $XXX we million, per revenues GAAP net recorded and share of $XX.X diluted a net loss a

results quarter charge Ohio, of a for as area. again Seattle the include is charge about which fourth in and an sale impairment that restaurants to leaseback was Our in net XXX,XXX from related other leverage, the about it by offset

capacity, in the quarter. While members adjusted to us X.X negative December reverses dining EBITDA guests leverage of November million the allowing protected reflect while our positive our managing business, and results serve and dedicated QX generate team for the the our in

Management down, of and rooms is and is to a sequential is point primarily several a higher basis significantly due cost at to can those capacity adjustments Operations seasonal process and regulations. dining In in basis This patios dining results, related higher were meat operating the inflation that the ongoing our rules to a of points to prior increase changing move and number lead meaningful the what premise increases quarter quarter, Team. the for constant labor Field promote to QX, to shut metrics. and XXX to restrictions and On in The late because a resulted accomplishment as a period have on result discount down was address prime discard were made California to and we decision Cost minute inventory deciding sales in significant the restaurant the primary dining throughout conscious higher quarterly basis which cost. Pizza best reduced, higher than the rib XX.X% food by shut came of over year room impacted the of primarily excess regards and the or resumption industry's specials during in XX our patio November. sales our driven could cheese fresh of the costs. by holiday Given

bundles with up came team us the culinary of in family December two other help Our the out weeks primary approximately that of see rib products rib million holidays, promotion take our X prime with last along for prime creative alone.

Including our the For the over operating and per smaller not to X.X personal rib benefitting XXX marketing. channel inventory. XX,XXX team Operating Labor costs for in menu. restaurant for the and such, lower cleaning by in labor all came to expense are and guests of have costs basis rebalanced week, were prime occupancy year-over-year XX.X% of inclusive any supplies of a XX.X%, decrease perspective, the describe and the and sales And safety of X.X% for to higher From activity average our our represents from of continue that labor at million compared the operating leverage temporary cost XX% of benefits, driving off-premise as prior nice volumes approximately with points we and about protective guests. restaurant to from Operating last These we of patios, offset about year. by sales answer our than and deleveraging a inventory. members the sales into equity fixed manager the was XXX,XXX which quarter, ensure items operating excess savings level occupancy equipment, are compensation. year. do

a the for to patios in quarter. basis, million fourth $XX.X temporary due reversal G&A incremental that’s G&A at generate million compared quarter, million $XX approximately quarter expense, Our and prior very primarily compensation million. was $X came On $X.X a trend down of high making incentive ROI. the to quarter in over for a revenues the in the the

the balance we of down quarter, the million during through additional debt. Turning paid sheet, $XX

we can capital and have $XXX As million cash raise last approximately sheet approximately year million. thought a equity been a flow, debt solid paying balance position, of financial cash the in though generating to $XX of $XX prudent it result, we debt have month. positive million our additional with finished we funded Even an of down

invest initiatives. Greg As pursue and And to BJ is we to new capital said, expansion has as further the in restaurant that not the look the our necessary driving vaccination underway. aggressively future, sales

capacity and with Now said started my the imposed shifting continue I or shut restaurants states and down regulators. be by California limitations We our remarks, to prepared of of the all out and our as to locations. restaurants in today, local sales and at beginning our by state varying only, also limited January the rooms had to Northwest dining and take delivery governed Pacific Michigan other a few

for As such, Week. California’s Maryland. today, average finished while January also open our approximately with January XX,XXX patios reopened. we used rooms have had weekly in and approximately have sales remain in XX% dining Restaurant February dining of and our Washington Restrictions closed, In Michigan, of

approximately which we sales of expect a maintenance to February drive As such, our and bonuses around our manager a some level inclusive our first weekly for business two than address At interest of expense, current weekly the CapEx, weeks for week. investments be also to per XX,XXX per modest grants XX,XXX has sales of average increased other XXX,XXX cash for of is and in week, sales. use less to week, another

given and fully measures commodity as safety to value, the to At of to As are present, middle back the allow X% due we everyone, X% hopeful curfews sometime our face. see should our near XX% are and the the this between the us across second we year, this the the is wages we've capacity right range. for in regard as and platform. in changing lead get capacity the to ever With differentiation anticipate difficult other about sales higher that regulations to will Like provide health loosening, inflation XXX% increasing very cost think we capacity sales of we half broad to more now implemented of which recovering restrictions, it P&L vaccinations sales well opportunity year. And and restrictions sales. we

of level result drive promotions menu lower. somewhat However and open of or the in higher could cost level in the of the sales mix that value different or

to We less million less are impact XXXX than million XX X to includes of than compensation related of G&A targeting million equity more compensation, XXXX. G&A X XXXX. look XXX,XXX COVID. also budget what in million due excluding compared to XXXX, The we X G&A, approximately million if at in controllable increase to in approximately for call or would equity includes G&A Therefore, G&A the to expect and compensation, which you I concepts of by compared X.X incentive

compare this right operations. it at which to However, the would consideration to takes look normalized I think be the to way XXXX, into

to increased in in As in Greg time, other G&A, has anticipate expect less. May, XXXX, by compared Merrillville, restaurants approximately two Lansing, of Richmond current down we've fiscal At as noted in XXXX Indiana restaurant in our temporarily which such and Virginia open sometime We early in the June. closed. or controllable been reopening to XXXX, $XXX,XXX we early Michigan the

It will between discretionary, many the as on the off-premise, for goal will the and open our back on will XXXX for to However, cash some in CapEx open past, initiatives, in to these are pull because Capital the we flexibility on advantage variable. that as based is real start Overall, of in opportunities open these to I estate our support to also CapEx our XXXX including environment, of our fiscal have and XXXX the we beer to drive catering when expansion. ROI important fiscal home restaurants efforts XXXX Therefore, club, restaurants XX CapEx would by be XXXX XX construction and operating high expenditures is X a taking to plan fiscal XXXX. to come you million in of note million depending for expect dollars driving restaurants XXXX. film include that XX to

more and on all XXXX, Though of guests. our We we guests. determination our As be engaged business, leverage they loyalty best and the loyal of we protocols safety couldn't our menus, to BJs resiliency endured and successfully in offerings, the investments experience build and guests implemented reflect proud are team for and team created imagined with technology enhanced modified functions, marketing delivery takeout and members. challenges unprecedented we to our to unique restaurant our possible patio members our

Our always growth. and just success pandemic, times of co-workers term and family, Throughout the hospitality service, core the have delivers. expanding BJ teams and teenage long been battle customers the our capacity check. are responded of strong to loyal we remained volumes food, reopening, friends our attracted fun and has Whenever enthusiastically drinks, proven have with others very and and traffic that or great

encouraging the by So by to operational execute despite on the continue we investments on our and offerings, our significant company for and the lead our building our and coming quarter. long loosen the challenges, Trends restaurants we to term protocols strategy to vaccinations menu growth next and the to phase. position restrictions more in capacity technology encourage over will rollout return to guests February are even reimagining believe re-evaluating of

volumes enhancements levels. implemented, operational service approach previous we achieve growth as our stand and to have continue the Given meaningful we to changes,

range phase up With for open sales once COVID aggressive normalization it will As complemented such, operator. the confident ahead questions, I we realize driven sustained highly and initiatives. margin materializes, expansion Zealand of that, go uplift a we where New in are will by post that

Operator

Thank you.

Tarantino will to begin We David Baird. question-and-answer session. We'll now the go of

David Tarantino

afternoon. good questions. I had two Hi,

you little progress occurred to Where sales level the about specifically, might I'm give wondering expect back Levin. given you'd and that get changes margin start And the could level. the since and thinking of pandemic? to and have that rebuild. Greg XXX% in at margin you volumes of a be expect capacity scenario, all the as that in restaurant would that for the us First restaurant as bit you if help Greg, how

Greg Levin

gets an David, really back us In to standpoint, saw margins. opportunity into XXXX, plus so that start back we've more get We as that and sales I in got recover, XX think percent. much to to forth.

us good for of a have put having shown opportunity the to profitable regards purchase in not bit. pricing and your better, sales the get then to be But they to I little you less cost a as guests. the a less items. less our opportunity kitchen, continue drive continue very save more proven we've menu that. fact against the we'll think digital to about around sales, of the server will to kitchen, because materials. we expenses And bounce see that to that'll out around of our sales then if and in I the which in our have some in part to that, kind not we good really being the think because think for cost labor and we made talked And I to have efficient, in at we there's have see benefit, of off-premise labor investments menu our leverage items be less really just of a point for house there, of lot used our back of just hourly labor, And in that continue

opportunity better, to all I good continue those previously really were recover. us if think where as not drive margins, to sales to they give a

David Tarantino

would sales would sales XXX be volume? profile at range on to at Greg, that, back XXX weekly that able on a you were that that, that's in lower you type would time? that that Or assume average guess, And margin Right. that of one I accomplish

Greg Levin

having of know back to know items, the menu as to and sales going look to to less again, But, a on at drive the ability average. we an try lower model quite highly we ramp actually out of fact post I I weekly business what to the our is be to based next very don't yet. business if perfectly start answer need get that, continue gone leverageable level, volume our to to to That margins, of has we get to in there part think that kind part way the through the like COVID. and they per lower and volume, se. I honest, XXXX, opportunity historical the maybe a takeout sales Dave, sales up have

as so we the to to to things right in front think in speak. about daily, much and us tackling regards As now, right continue the of blocking,

Greg Trojan

only the add. I’d And thing

around really sales establishing As are I the of averages will seen see that the with more so averages. And to focused the weekly off-premise context we're is and up like for reason we pent we're keeping think before, thinking growing going demand dining that sales passion friends than about come is and business some historical in this to believe incremental margin levels, on family we never and like our business we've historical because And then, firmly to dine-in is back this. this becomes those opportunity continue time.

business. but margins the to the is our bigger elements line for number say to the all on drive easiest we this way of for higher cost So, leverage on percentage a fixed the us time, the top

that, the everything levels. the leverage like really levels the intention. We But do I sales higher on and margin of opportunity mix the concepts here of little sales sales, there. to our at lower or advantages, weekly is, differently, and we're set new let's saying prize accurate same what an given think, is all Greg, see return volumes establish really a in So, eye the margins maybe it's and have that's to

David Tarantino

this just the at Greg. a the brand on guess, -- concept the more not you [Indiscernible] of strategy, excess I you the virtual on wondering focused And makes I growing it's obviously why I more have And why Yes, point? slide why in I'm you kitchen. sense. in then, capacity why be pursuing would could one are one, guess if

Greg Trojan

But as obviously from a lot look prioritize. restaurants are, fair perspectives we Yes, why Well, you question I good our like, and get different a wouldn't busy think question. in that's as fair, that another of

remind we're May is I time. all lot the of during business, week but when weekly year we at always volumes times, are, and how growth June highest our there. in that and the essentially capacity sales of flex question we higher in think we're busy people the your And look a restaurants some November, when margin given during or I your running P&L traditional our flexing

So to that way see we dollars we capacity". the answer again, through, a to essentially, we fixed cost our as drive we incremental have, the have. this do question And structure through system your and "excess is

we for it ends alluded to are But value we our incremental want to reasons is, that we truly you're the that, and make adding to suspected So, these our up sure as remarks, so be the I if business then being conclusion, my incremental to asking. is wouldn't obviously, in and doing shareholders.

kitchen foremost, is, differently first, mean, others I we're kitchens think we to concept but in element and don't is et the so this protecting again, seeing sense. The guest. our engineering if guest sell that optimal minimizing the accentuate disruption with that kitchen the why more pursuing other and would I from menu, alluded and add in will doing if And kitchen almost makes starting versus is, and that We're I cetera, even in perhaps some by the little with first remarks, are than we to just it a that. than the -- starting

kitchens the end don't impacting efficiency we up that more. and So impacting of productivity capacity even and our

is, we're constraint impacting in kind way what So, a start our of going look, with that place this the point of do see to in if that's we'll kitchens we sales volume. And disproportionate first. view drive not to we

David Tarantino

for Thank detail. you that

Greg Trojan

welcome. You're

Operator

question And to next we'll Jeffrey our Barclays. Bernstein of from go

Jeffrey Bernstein

questions Two much. as very well. you Thank Great.

But regularly know in guess, which the that to one, unit you first XXXX. comes growth, just similar And XX, I ramping on to encouragingly, I pretty up seven The in think said to discussion. I doing XX. in XX two

you XX few years know I models, ago. our at back looking a Just year, a done to just had XX

opportunity. especially So huge than I'm dining supply, the XXXX more a why to turn wondering just be not or talk like on about maybe contraction, wouldn't do able you casual and it in the your quickly just which Whether Or a there's that you're lot that than when maybe thought it did not successfully seem ago. I process, wondering just or then? any few constraint relative highs years an I'm to now labor know like quality seem again, Because new achieving would of view you it a opportunity site whether issue? a of there's perspective, it your a more even issue prior? from XXXX? And

Greg Trojan

timing is turned It's really say bottom isn't all COVID. And the we context is time the the and one Jeffery. on. constraint really, is, a people not of is in sites, really question, the Because the big this good, have and it specifically another pipeline line we then,

that. confidence COVID where the to feeling We sites. have We're this yet that to But And and we be we it at can pipeline site point the to times a it coast level want the of of gotten and least at before is can and level we about here. not more where typically be have identify right? clear little better of takes frankly less XX enough better commit months opens,

a to COVID the describing not to yesterday point where closer, And here. than around start we'd having getting but of to that that We're go consideration to So, XX also the where just we're strength -- there. ready it's more where flip people have it's more and quite do restaurants. to event here if But we switch before timing a months, ready and confidence we're many a foremost, given quality the we're we're and we'd wanted than we said, developed the or open restaurants and at perspective. have opening have first and like there I from is, timing that, level

people It's as that thing is think that kind though, And say, [Indiscernible] back those is that ramping. to environment quantity we and are I opening us, you air of faster? we are clearly go here. Now and opportunity going about And get happy we with asked quality we're years for a to can to have as matter why on years, can't numbers. of the But excited ever one the last and overall. than

Greg Levin

We're restaurants, about think discuss floodgates the AAA on we on If everybody And quality, sites. long we I going sites XX could open. is Greg BMC same all that which haven't good yet. to to the was that said, the hallmark softening And nearly just But can want do not a regards the that, when but already together opened maybe to and day they real to continued at And opening go opportunistic we add certainly only opened estate it want good we we've time, with go sites, a Jeff, markets. got those quite to wanted our mean, I thing XX they seeing the open to have BJ. sure will. to And into to thinks sites. team we pipeline. as the of people into in quite been those make -- believe be that's

restaurants mainly that COVID, We where those not that even a the on of versus regard. rules, do we around close we've had some to restaurants, though restaurant because in because And impairment have year a to were even had operating accounting performance now, taking and ago.

about. we've new again, at we're be And been we'll when availability to with of come first. time, same So always sites the But quality going continue that. opportunistic those

Jeffrey Bernstein

said, XX you Trojans to encouraging it's hear. to XX. guess can't I that back Greg to get Understood.

in that's it's your XX. and capabilities? on radar maybe the well So not within But

Greg Trojan

Absolutely.

Jeffrey Bernstein

the you people lot which clearly high, of It cost follow minimum are potentially things, mean, often a the forces, side I like talking about national up felt quarter. flip going it's just unemployment pressure my points basis was seems side, And labor But labor. a the implies of these up. opposing whether couple on of on XXX wage this

how pressures, to labor I'm confidence wondering you operate the through or love sense in California, to But cost that Thank savings, have majors head your cost context revert just for with a get the trying outlook. your technology, offsetting So on others to Maybe whether deal just restaurants versus kind you Obviously, great? whether to of availability? of menu Maybe your and mix your so would and labor outlook many you credit to pricing? this? with a outlook color workers, it's the start any in be lot have or you. of

Greg Levin

it. path to I'll through there. going and if to add as geographic our as see I'll because has settings to But take of move the minimum part Greg wage we increases add any a today, we're first

We wage first years increase the the that say than a wage federal minimum impact increase, that to cost some of be and have federal throughout because -- of -- in of the to would I our couple impacted the that from competitor minimum there's restaurants of But states obviously, ones from standpoint. want less California, of lower minimum to in BJ other some so significantly already less wage, maybe versus those above more lot we're our the restaurants regional of XX% standpoint.

of than think us some in of footing puts that others. the a I kind So maybe better

restaurants said wage other not the rates people It across that good X%, was as increases and And we was we Jeff, the cover on at that board, a fighting overall. range curves, We're issue think was unemployment, California lot so. time both the for in in and because dining this or before, to that general, wage everybody And X%, line and X% prior restaurant in wage kitchen increases COVID, their states. of companies. mid As low room. see, real getting kind you and in rates was also about the X% -- the in minimum we and it seeing

went flattened seeing we've now we quite that not the kitchen seen we you right saw this through increases in that obviously earlier years. see that We're As out. in the the year,

somewhat members say least currently, challenging the it's get into I still However, back team to at restaurants. would

within over of seen the gone areas. been vaccinations industry, into the the a that'll but think, going couple as at And just I of manage out last of would think other And coming really to And not as time to comfortable Some may have than environment we're over the a result, them. costs better help necessarily working are market labor kitchen yet. new I in ease some see, years. back others of some kind we've the that'll

BJ's moving guests invest We to sacrifice to always we're We're hospitality technology. out and will have there. demand. We always guests going other service the that not in handhelds a for things our to use. But and tablets

on come and they admire really at doing why they right respect and we're sit the lot hospitality service that. now of top guests and research that our fact, In a of to BJ. frankly, And

That's going I three, the wages nine, cable from is build So sitting XX stations, trying We're have to to and to the top take your line their here up, going model to XX okay, servers stations. run offering going eight, saying, sales, and is to cut cable not best four end BJ on how the wouldn't down which be with labor. items, quadrants. grow through way we're menu going everything to manage

we'll take technology. sales we challenge our we're in So week, and our those or schedules on go good up is invest know what always each But each to drive of that. going we it. can really we'll what central leverage The see invest we down aspect week. in predictability business, are COVID there's of to do really If that that's that and manage curves. But we'll get that to need we more when labors. continue And from in

Jeffrey Bernstein

Great. Thank you.

Greg Levin

welcome. You're

Operator

our And Sandler. next go Miller of we'll from to Nicole Piper question

Nicole Miller

direction. thanks up you. afternoon, a and since may the thought ask I joining. in Thank Good as for his marketing, Kevin Greg question also time. I Greg, you put in headed

opportunity brand, positioning. the and marketing perspective the wondering number local I of also one This grow So but about National to with scale. from a was favorite is

Thanks. pull become full able anytime marketing segment I you ideal casual what's in And change then the two, So do kind the current has any, tactics And dining discount back messaging discounting environment. channel? of part to guess, on see been really the again, for and to service the what's in soon? to

Kevin Mayer

to Greg, you on want jump this? it

Greg Trojan

you. was Nicole think, I asking No,

Kevin Mayer

the Okay. Thanks Appreciate I lot. question. a

as brand. I messaging a relationship area, do have first on what of So lot saying our a start perspective, guess at first guests our Greg with from the was experience, we positioning the the

areas and we but the of we in So have, of starts, cases it what catering of call do delivery. also, a lot use course there we'll dine-in and

try first that the then message And we the connection. really, into with use starts of secondarily, the extend that or to areas case. state our needs So

we the we're some right what but with position, actions. And messaging to we not at research brand have mentioned, everything what and the from so Greg our do cetera. concept beer call And level, carrying delivery, we to doing now et

a people at have still to so more still against the learning their And cultivate And BJ. from there's more our And we're think we guests. that experience. feeling lot the nationally

then for here, less answer your discount that tactically number value for in And in the actually done obvious one. we're more is we space. a So into lot But space, is a reasons. have

some our get taken it. we off Specials continue of So for played and premise like to space together things Brewhouse to the and in of Happy done guests. us. bundles have all us some back to the do They the of a that we've areas, What our in well so advantage interesting highly been Hour guests our put from

of And is our that We a so to digital of still at leverage a as do well loyalty. get lot message our what we looking for as programmatic more we're We lot doing social now targeting. of do lot a opportunities email out. marketing, of course, there

So tend channels now. those to right be strongest our

Nicole Miller

Okay.

But proposition you. versus Just going proposition, discounting, actual to I sorry, lot interrupted. value think I'm make sure, was to about right. just the the Thank but I say value a

Greg Levin

ahead, Go proposition. Yes. Greg. The value

Greg Trojan

The the our engagement an value. our ability and is to other it guests, loyalty drives that proposition the frequency think and popularity of element the us that to Nicole, is grown loyalty of and then, the program value I intrinsic drive give

way. a somewhat unique it's think I of

mindset think and we discounting" is I think the it "conventional more way our around to on but that we've more the more So pull the extent to past is I got than the in to environment are of all competitive weapons permits that to back unique above to continuing productive, that also us BJ's. have keep

Nicole Miller

a question. for my helpful Thanks And this good That's update point. afternoon. very a taking again. very thanks Its

Greg Trojan

Thank you.

Operator

of Morgan to Glass Stanley. next go John We'll

John Glass

some of have need decline? first, done. about those? supply recapture in are specifically the takes to to back supply same other thinking you retrain you're labeled the you even maybe What other now and As just rapidly you sure mentioned, to Greg, that as preparing steps I the being going chain, to just make like be sales how may declined side much. you've it now everyone's or there's you is rebound at labor good folks, of same need unpredictable for looking preparing supply. for the for a I'm as see example, and very time? talked to start you you lag same got areas a suspect to visibility and for boompack that everything How sales? you a long Thanks as are lot how be [ph] about

Greg Trojan

a and challenges obviously and What, That's to John, It's have past we ups great something sleep a honestly. Is a here adapt COVID have forward in presented during system. over from to and our great ability lose our that's such business in not we've vendors and work to Obviously, seen some having. look higher to -- volume. are disruptions I hire environment, -- operations, train year. the folks around we downs and and chain. distribution had supply here a we but there normalized those, had problem and We've like

be I so, don't We're XXX,XXX It's that's not in to going three week going do. weeks. And to envision. what at not we a overnight. And happen

I So, we've think demonstrated.

on on As rebind a that a can we've it [ph] Thursday get a opened up dining but rooms, we'll this, open basis on regular notifications Friday. we

ready. we say, we make we veteran our want of and some sure and sure to make gather sometimes look, to can we And open have we need troops the well, servers

its or have up. a time. only up a in operators been to But from carrier -- able to to short And we've sit day That's pretty are do a able to wait ramp California. off of increase in go down been -- premise opening et period we'll big you rooms, They're two. and When dining able So our dining cetera. that.

So dismissive to be I don't mean it. about

a it's some have that good I think to about question. But more. it's can't -- So wait and

Greg Levin

start to would to to have back it John, be Yes, which sales they will. problem when that, nice [ph] come

will put like go the up. to is the to yesterday's to that always think there and $XX. continue we and and was great team in it Thankfully, are with and propane works issues. a gas tanks costs chain that was got restaurants Those be going Propane they $XX see are as think or things gas getting mean, going they'll back I of supply cost be Journal at. see we we've getting I like the up, PPE were tents those incremental open to went Wall of think QX, that just some I propane Street I from up.

sales sure, also side they members, we in chain keeping with and happens in XX,XXX for expenses costs are the much I forecasts the keep got because happen team In think We change be sales, the it x, let's heck regards had -- make team it, make road night work here trying place. the regards our in a or Generally, we behind see always to those thinking sure call just do more would bit supply down with in shut though, And out the incremental that in we'll running leverage the touch do think to up, probably because done getting I letting as a bumps to then they're alloy will like and to this to things of our businesses of chain really there. able know bring in us, those other you're you're in suppliers to that to We regard if timely, as nice we at had our job back. there's to QX, go when little happened it down. business what to going in business our say week. those is normally a in supply try will like them we sales to wouldn't opposite

we'll back nice right in margins then out. those so to levels, a of I ahead manager right regards the some staffing see forth, start So get going it flattened and the you're really companies. to for bringing And you'll to early levels, slowly little see on think bit

John Glass

the Any partitions a about your Thank change, which other you format a prototype restaurant you you had probably you. larger about to change? you the perhaps fundamental stores something the you if drive-thru? XXXX? or Do aspects permanent Do about think as of may is chance One XXXX. development, you rethink adding actually about question, lingers? be competitors this when the include smaller think pause What social that of distancing a think in when thinking right,

Greg Levin

seat from through And the didn't really high I to see version are every don't But statement examples and of did we Another partitions. just think our they A, look, the which referred a our We these, they this or like we you that where are were restaurant, it. design call great A cheap beginning, those of what we and you didn't the part bar field do to good question. -- about there of the couple to restaurant. I quick yours think fact can want in is important look partitions. obstruct open whatever them.

have here did careful premise come And approached perspective. the some on around testing, different the stay months. been to how versions so But years for believe some and we we design were off they're not very time I thinking actually partitions. about of capacity to most Because

to versus that, think elements, shrinking So your like stage out. space will. and the list, we engineering more I accommodate are and of party the them in line Those can et but some for kitchen placement things you put all product putting the rooms. big. bucket dining sort delivery, capacity on for kitchen physical third if you cetera, thank where I ergonomic and of of elements take There is more in of kind productivity I

have our we grow today. going every We're We in the going is we're need restaurants that to are not to come we back believe -- to capacity dining going bigger, and reasons. seat dining

looking lot concierge a not we sequentially that do anyway. is open drive-thru say list is and parking others But moment, that's experience kind can at we we never. one examples is I that takeout our advantage at highest than large and lot in that of the given are in on capabilities way, minded looking there. faster the our through orders possibilities thinking actually more wouldn't drive-thru. We're current you at. of a not a and them. of are effectively fulfilling not no, have But of the So on the of of But good things list. our we're speak execute

John Glass

Thank you.

Greg Levin

welcome. You're

Operator

go And from we'll Bittner moving on, question to Brian Oppenheimer. a of

Brian Bittner

get into Can us across week understand capacity to on weekly February availability around your portfolio or averages capacity what that for February. average achieve between as just some your context about guys. think would help to that the When that and relationship Hey, in the volumes give you level? we last us recent sales? to, in think sales average you better I weekly $XX,XXX that talked sales Thanks. improvement

Greg Levin

XX plus. Brian, mean, I bit little think And that a you our opened where any open. And now California back in XX%. we rooms it don't dining is California think look XX,XXX, the just about get effectively capacity XX% California way And tend we get standpoint. of room or you And was right probably those And there. it don't want about I I I I that say that is to in get honestly, talk in to about I California But can around it. we're have to have we which less dining versus XX% effective regard had have of dinning month, telling to to -- business to our open business. we in don't than patio, I rooms let's our from that think at bit little a doing of I that. at our -- even I our October on now, call with like XX,XXX patios, a

open I out have. I I'm if couple way helped the that in really or don't sorry, that first for necessarily of weeks. It know you So not. don't just

Greg Trojan

even very there is obviously this no like obviously. of reg. with tricky and and weather And to dine-in. easier is year seating out of tricky, It's is figure It's time it's outdoor with restrictions also, defining the said effective capacity. like, capacity Regulatory then to I

Brian Bittner

your capacity October, is it But it is to than correct? safe in less was February say in

Greg Levin

Yes.

I getting Mexico said, that California to even doesn't close XX%, think close. put were we patios anywhere time, our we to Oregon in are New Washington of also Also, recently were and we our January opened. I at rooms going places just to have us we XX% we where At October. like down least if dining went you That's like obviously look at patios. Then XX. think open.

a it's October frame. than the time less lot So

Brian Bittner

all via And you of it in scenario do I going suggested, In the be to expect guess in sometime where to how a which sales capacity? lag reasons and could second you've is just with maybe restrictions that there capacity restore you some XXX% getting would capacity scenario, get half. completely should away, to the volumes kind Okay. in back aware happen fully your your a expect increases? fall, volumes Or lockstep we of your

Greg Levin

because will in our think still greater because premise will than a business. volume amount our and patios the capacity I be maintain we of our Now, off of certain sales

We increasing capacity are versus call let's XXXX. effectively it overall

Kevin Mayer

The other I spending And long time element see it last. to more. be this think out. is, we'll when they are how for and people this going are But some will

still important more if Our those going lower told certain point that But check channels, actions every percentage capacity. see, certain like increase people of incident the is outside, driving least rates much But checks that of they COVID. when is on or will as have more the particularly envisioning each but California. of higher right. of think in sense, we're all are just parts overall, not business. we on away I don't all of makes post -- element dining their think by going takeout that people parts country, we're year our an absolute effective including the sitting out, elements check basis, of alcohol, Like in at growing, because point, menu I not our our you're as us, And have Greg's in in

Greg Levin

premise premise. Yes. for Then couple just things And created specifically of channel. off we the that the off

if number I keep that think said, to to opportunities we there's that it. up, have, not grow as

you've increase premise, an off a in I the got of So and increase, these we in some which is think effectively, patios. way structure capacity

frankly, patios have a hard then with our later, question earlier, of question patio. sitting they'll its patio it's comes or And that. measure about your be out, is but and to the this Brian, think where cold about capacity I we open, sometimes direct it's on kind

Brian Bittner

Thanks the for color guys. sense. Makes all

Operator

from question of [ph] to go James our And Weatherford we'll next Stevens Incorporated.

Unidentified Analyst

Hey, question thanks angle every to questions. independent A on in I wanted in call space. the if It taking this closers. that up I ask may. different about for comes

for appear they And is? that in a think contraction as have been about pressure premise off inside we well? the markets. can't business, for your gain business in can and real any under restaurants. significantly. from as concepts Had when bar bars just that more meaningful And supply You meaningful the bar market plays many restaurants given only you have observed category subscription it’s opportunity than Is a do share your

Greg Trojan

We even tracking a of a don't, job in industry do fact, normal in this. great times, our doesn't

So all anecdotal. it's

those we're like, we're in working been out your more that but opportunity the are interesting on to bars to it's in obvious for think to for time to a have pullback. California, that hardest the us totally could ignoring and reasons, Here, And again point, about are there's hit as to referring we'd spending and definitely element but hit a particularly it's I I and remaining right. is less And fortuitous rules laws here going been open hardest be probably program the time than or the regard. was and I'd Except say, do been with subscription coincidence there. the beer that businesses indoor that restaurant service. related say, that an that, developing But be a of for

Greg Levin

independent, said hard I is more just don't it think the restaurants sports and related, off lot close, of it's see obvious a a don't doesn't more kind of Greg that if there's But lot this centric lot get their patios it's around. information, bar if or fairly maybe speak. around permanent it try Knowing, Southern well, the driving to But know independent California and but and it'll national shut quantified of driving a it We are in that get have around temporary. went be numbers area, restaurants, of a you of again, definitely James, kind doors. bar there of closures. so a out the correct the to

Unidentified Analyst

is color helpful. That

up question on of bit is previous a follow a question. a second The

state into a Just level little digging bit. trends

think or purely got at customers better to in seat? take, in in detail a capacity seeing will in point states restrictive January. it mid Or that states this were if or time, vaccination to during to curious, still I guess, back close comps in COVID? forth, peak Do sales were Florida, helpful them pull less some so it's something pre teens in update your those you some flat some the, on to I ago, they I'm think get gave what and you constraint, there? a what's a waiting compared just we've to of just You and hurdles get weeks negative few demand normalized business levels, Texas, get times really to and the there's doing bridge the to

Greg Trojan

It's all about capacity. about all It's capacity.

late Day to the of California have in seats, just TVs but restaurant. night. You curtailing In number on not you it's can't remember, it's parts. have curfews

people showing to So aren't up game. a watch

So it's all and lifting the establishing capacity. restrictions of about

Unidentified Analyst

Understood. Thank you much. very

Greg Trojan

Thank you.

Operator

And we have time for Bank. of Brian Mullan Deutsche one more question. We'll to go

Brian Mullan

Hi. Thanks.

eventually across or locations? of And club are be attach maybe is certain program, it in remind the you If works food provide on kind seeing put quantify something us, you'd you you only seeing And it are the just is on Just What willing or mentioned. good about Thanks. in traffic where you think you that listing of place? maybe beer traffic? entire just stores you base that? this at see question color to then subscription

Greg Trojan

traffic sorry, we was the of between there -- question was seeing? it I'm then expansion national And what hear that middle missed. of are I question. couldn't something Brian. the kind We and

Brian Mullan

Yes.

where you Are Or program that does And food seeing Sorry. due certain ambitions comes those for to this only good it? have in you is on maybe states everywhere? attach then it program? traffic work

Greg Trojan

a start citing not Its few you I'll though. general position give metrics. stage we're a Yes. observations, specific here Look, in to given. early

the full We September up program all look, we in give and of on The -- card year indicator last first you caveated. and are rolled our credit this with is people sign willing midst this to all their subscribe. of these of And launched awareness.

we've So dining at downs. and rooms had need form here. ups in and least some dining outdoor We

our hurdles, interest and tell we signups at been but were interest rates the levels not encouraging what those despite outset. even just actually that have I I you. level, as expectations we've sales mean, exceeding So that seen level, the

So the happening faster attach People anticipated. you're has and And happening these was about. we're are we benefits. also by encouraged that than using asking been rate

you So I'll an give example.

member. them appetizer of buying the to refilling to growler an are you're People over growler, or if that along are with the ability a that for half again, people is actually is the growlers a an for go news $X. love One good $X or doing that example. But and refill for attach rate whatever food

members, activity. seeing it's of because like we're on caveat, of in again, treadmill. to use club eight health or people take in seeing But So we these We this the super those months, we're what the get like I not club like business. here of what the terms health We overall people offers stay we're We want say want not to want key them right? weeks all on restaurants with we the to of like years. people, and we sort So want in advantage metrics. years

We terms the we question, like alcohol and number of states state kind used a can wherever COVID implement the today. initiated has we where terms program sometimes national or the of be In laws from of the of tied-house and that tied-house laws to in or are they're fact carry-out. of TABC limited local

in of we So are advocates flexibility those that states. maintaining

see kind the approaching we those to that's California continue of to that So these after plan is results has states. start

Greg Levin

Yes.

our that other to I covers to average we'd restaurants, of able states able an the think if on depending it in Beer and you get where XX% number higher. be open might somewhat move up, here about be Clubs of

Brian Mullan

you. Thank Okay.

Greg Levin

All welcome. was operators? question. last correct that believe Is You're that our right. I

Operator

call. does advise today's at time, that Yes, sir. concludes I'll everyone this for your And, Thank you participation.

disconnect. You may now

Greg Trojan

Thanks, everybody.

Greg Levin

Thank you.

BJ's Restaurants (BJRI) 12 Feb 212020 Q4 Earnings call transcript