results. everyone, Potbelly some provide our afternoon, thank for today. quarter are you Good Tom then Matt. and how efforts and let details discussing more time spend you, our on to going performing, Thank to second joining us specific strategic I'm reposition
driven weaker sales results for were traffic high trends. started get down second the level I'll quarter. a few Same-store by X% with
a important results, as traffic this of While transform to quarter our progress the our number company. hindered of contained we continue points softer
today's are deep key these our of strategy. and more like but presentation, I'd a in to driving give the pillars will results that his discussion you start strategically Tom breakdown reiterate
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are; to progress the is we four this The of improve continuously one, need our to far that pillars comps drive traffic on. sure optimization. We area our make strategy most profitability. the made is By hard to menu and menu have working
off-premise grow Two, digital. and
Our catering, channel consists of delivery. and digital pickup off-premise and
even made a in initiatives these new their for growth drive better have us we convenience While the rolling allow more of opportunity the we needs. to will creating more feel out by customers our we're service and progress to channels, lot like platforms
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of message improvements drive mix and awareness Those in around customers. to focus awareness media and continuing traffic. right pillars are four retain in on comp improving the finding to unaided This creative and revolves to we the to our build are
quarter. I'm franchising the release. of a pillar of those. put our saw strategic, press efforts you most last Separate use aggressive drive to outlining week significant to progress from sure The fifth on out on We last growth. is focus more these of our strategy geographic
clearly the that our more time initiatives franchise progress. let's and a But do, some discussing that those to more talk last perfect. before take working are time and quarter I spend similar need as through I'll approach
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check significantly, when of growth came quarter's XX% past growth, with over the in the check most transaction. an customers from increase per that visit. of to getting units was rather more This of years, buy up number charging from In growth coming more than they
of optimization half a the to of still products are number We that refine in Menu process back help continuous test drive and learning, of like the LTOs. where is we have year, testing a initiatives we traffic. innovative
on check-building LTOs For focused example, have we traditionally
proven initiatives number while And have those a successful. of
shift to We conscious to decision, have made our focus some of a traffic-building LTOs.
these some quarter, in roll LTOs year. the early ones and out of the quarter fourth the the We are to successful next in with third testing QX traffic intent
I Potbelly year. creations Chef as throughout the joining move would and Ryan our menu we chef, his delicious are the has And also the Michelin-starred team. put like on commend he share creations very excited inspiring to new together since to we
of that digital working business our our initiative. off-premise of quarter XX% in area Sales up and sales. and is were business comparable this comprised for Another the is XX.X%
channels All up year-over-year. and business, off-premise digital of were our and delivery three pickup namely catering,
digital positive off-premise consecutive and have seven channels same-store produced sales quarters. Our for comps
Potbelly market We progress. made sandwich we transact the way now most to have we I up. To convenient believe commitment off-premise substantial that And made ago, believe, months today. of the point, one digital and behind XX is a in were easiest in options I and our catch to offering.
to this with XX team way do, we dramatic a executing were seven part comps are changes but positive for proud in I'm sense and urgency the sure, we work working. have for pave more growth embracing where is accelerated critical this consecutive strategy channel. of of and the excellence confirmation quarters of this For challenge from and months ago to is our of that our
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ways The making fast number to has and it right offering new to recommendations talking looking spur to to to more and check. provides and of time and with additions, site improve easier about We the easily with experience, pay party site build what customers now, allowing a for, popular they're new spent on a and clicks. fewer catering easily much site including of the what's the bundles and seamless users your based order find and lot drive a size showing ideas intuitively by order
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digital Delivery, the Now and third moving off-premise to channel.
and great tested with are in DoorDash that saw the of national to two rolled We markets in the announce We July. first platform we excited we our partnership results. week out
us are they DoorDash is by we a We awareness. know that our to they on customers name. help in excellent in believe our directly and to can the our brand up, the build officially onto DoorDash Potbelly all-important to marketplace loyal for app Now the if of markets, that are searches expand an we for and delivery search customer each presence channel or partner sandwiches, DoorDash use so logs show and will
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I where of the some a our a channels of Before were ago, comparison off-premise digital shops where Tom, they want you are versus today. I delivered to some give to time. Delivery, year and transition year last
all Now, all and in hour they every are our of you open shops via Potbelly deliver can DoorDash markets. order
had Pickup, did for to not last their pick orders. wait customer anyplace They to order. line in get to year, we their up the have
very Now racks, Dashers. every dedicated which for customers easy has makes our shop it and our
frustrating. Catering, was a therefore and time-consuming last placing often have not platform we year, catering-oriented a order catering did and
suggestive customer. catering are have we of build we a selling. Now helps easy focused check the the makes and to proud is that and with on it site order It
the Now providing app, Potbelly customer order the website, DoorDash a the on on seamless you experience. can on app Potbelly and
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now new Potbelly progress. website. improved our you want That's cater, you on If to vastly a have substantial experience
weeks occurred I want the important few our a way. results half and that last off-premise therefore impact and The momentum has digital in didn't point first make our meaningful in mostly to here is
DoorDash weeks officially we ago, all We ago. in five launched and our ago two weeks shops our catering pickup launched were weeks racks our website three launched partnership
a with see of and of second the lifting, of lot of to excited year, these the but half obviously implicit is the guidance. that half heavy perform foundation improved support some how the laid first outlook we're our in initiatives throughout the The year they
of of address. and that very have number right there still we working. moving in are by are direction, So the we while issue the a summary made that's taken of of steps we clearly is a progress amount the a And to important need that great number encouraged things that proactive were
right traffic. The biggest now us for headwind is
proud make registrants our registrants nearly While increased we perk have registrants from sales. very built, up of of base and the X.X XX.X% Potbelly perk the million number our are X.X we only million to that of
creating acquiring on and need messaging. to email shifting focus just in customers. new get marketing loyal in Therefore, our back love both why innovative our social We we message to they that our to ways and second reminding do customers are half lapsed followers the us
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that Our awareness. focus and drive promotions and will the finding on comps marketing right balance now between build is brand
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media We mix, creative work between continue to customers. our resonates to balance that with proper find the and
the In marketing. marketing we our lot to but the can a And investment with our on and investment. positive, invested Results reassess differently. in second quarter, what of do month therefore a level we elevated not first of hold advertising put commensurate we were
rest number of will a the year, of through you have keep our tests We progress. the on planned updated and
discussed in you approach June, when where you loyalty spend our call we in launched test our $X our receive three-month punch virtual of Summer a reward last to Smiles card $XX. we As program
a view results the already we don't While program encouraging through have the six we the weeks. full until seeing ends, first results of are
between perk One we program frequency not something forward on to measurable earnings more to thing our that for saw next XX% look That see test the members. is results seen are This a have sharing time a call. in important means, outcome some we the indeed. good I we very is our beginning is progress. decline time proof and driving that, for purchases
briefly want our on gears, you to update I of Switching shop the all future.
a would The of As in a redesign everyone shop look we on and customer would to research we may have investor latest has take complete of you from a some store few seen, based provided like look. Potbelly. new encourage extensive new is presentation, still the but new is bottom-up renderings our look feel, a the what uniquely that and whole
elements highlight. There shop a the of are I like to design would key few the of new future that
customers some pay our and find one and time. sometimes one order at will customers First, place in ordering Today, process frustrating. confusing
open today's before, design a few wallet to wallet. before requires their during said their they ordering physical once, The currently customers wallet mental just mental customers times I've to As we process. ask open new open their only
will be throughout directly and the have customers there above are scattered where Second, today board pay one versus order will what the shop. boards consolidated the where we menu menu
where out. Third, to navigation will improved pickup obvious take it versus will go be you where vastly ordering or eat in for be
– transparency to see see freshness ingredients we be make their allows of as to members. being Fourth, the This made customers use plus its customers sandwiches. food is a of big will one able by and to and our lovingly the quality team great
sandwich not is a direct and at be disrupting will of process atmosphere new customer. and The be customers the the Finally, relaxed experience very of will more intuitive brand for line aspect shop the most the is shop drivers in and comfortable the to important competitors. orders store our dine-in Further, that The eat without through our dine-in new customers experience. true something also delivery ordering faster. and pickup find get easier will and improve the to
compared new the company by before, will by one the investment the reduce payback current XX% model shared period for and year. reduce the design new franchisee to have we a As or shop capital
the the shop open Chicago future to in of in We two QX. expect remodels the area
another geographic will drive reach us growth Let's strategy franchising. to shift increase that's and that future and our help
over seen. these We the made we of efforts announced first franchise progress agreements you recently signed have have have year the three those that tremendous may half We that when some and during Las on of XX Vegas, out be several of Carolinas. franchise will the and U.S. built will double our units next Tampa fully These development multi-unit a years nearly deals the footprint. total spanning for
franchising six have years shops the the have U.S. as months since in in eight up we we began signed the as Importantly, previous past in many we
experienced Our very new partners are operators well-capitalized. all
effect get As exceeds at about deal our in really in encouraging snowball four everyone knows franchise in what's point we the franchising some to that is business. this Thus, believe momentum a highly our individual agreements three once you significant and business turning shops. previous begins are franchising these of record we each
experienced We franchisees to beginning shape. continue positive conversations have take see and are with who initiatives turnaround accomplished our to
feel are believe our see off-premise resonating we'll like success Our approach here. expanded of to momentum really business the It's enhanced lies menu franchise future and proof digital and the see future to growing and shop and we in more of we growth. beyond transformation low-capital and great XXXX with this
turn who the the With second the quarter. that now walk through Tom I call over us in will performance will to financial
