RUTH - Earnings call transcript Q1 2021 | Ruths Hospitality Group Inc

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Operator

Good morning, ladies and gentlemen. Welcome to today's Ruth's Hospitality Group First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode.

Following the company's formal remarks, we will conduct a question-and-answer session. Instructions will be provided at that time for you to queue up for questions.

conference being today's reminder, a call recorded. is As turn over to would now Chipman, conference to like Officer. I Kristy the Chief Financial ahead. go Please

Kristy Chipman

Thank morning good you, Gerald everyone. and

Cheryl Chief Joining our today the me is on President Officer. Executive and call Henry,

could encourage not Before We Investor future you part to Relations we filings well undue performance you include financial and statements. earnings and of at remind not copies section would for are the of should at impact recent will rhgi.com results. that detailed that These today today's the with therefore our begin, statements the sec.gov first be discussion guarantees our as as to to website them. more future would press of forward-looking our I of a also placed like website operating the upon and SEC release our of SEC's refer discussion reliance for our risks

to this This refer During measure per was of that useful believe items. represents we measurement performance. by this a share. internal non-GAAP call, excluding We measure certain will adjusted earnings calculated

You today's can now I of find Chief company's to share earnings Cheryl to Executive like over the the call. turn call would release press Officer, a in our per Henry. reconciliation for adjusted

Cheryl Henry

Good you, Thank Kristy. today. joining us you for morning and thank

the today. by the both last field But reiterate efforts again I want local and of year volatile we over challenging do XX the impact focusing to center for been environment us operating over foundation to the strength During COVID weakness a have including a once strategic to the our conditions. at support them, and tunnel, now. today, excellence that and early truly get to of of although our recovery, the end we're seemed great recruiting our I'm and on before were of because has across peak light March, mostly pockets technology, team, also believe business. built call their we've our the They that on And stronger done a the see stronger navigate people, driven I in system, years, believe the past in in and of to commitment emerge into recognize in nuances operational I that to sentiment brand unwavering our we've I priorities, using I the for mentioned guests. continue on be there that digital pleased and crisis company. allowed and and our even to data we an and a training market work

with to the dining, now, restaurants end of And As we of were our capacity average we XX restrictions And opened across quarter, XX% of nationwide dining company capacity began with had at dining and the rooms, dining operating approximately all know including March, by restaurant one nearly loosen. first restaurants system. the all an during managed indoor company outdoor by restricted only.

we yet we're XXX in operating and on Hawaii mentioned while seen this in of So the while normal softness. economy Florida I following sales. to experienced under for But average improvement highlight are challenged had coming bright in each most a have the New is also operated is still all I'm historically and To two for capacity of are direction while improvement and I quarter negative two that a Manhattan reopening, just portfolio trends the improved markets. to point are trends the weeks, month. remains trends comparable Average To and moving local throughout positive that pressure and our key our the positive Waikiki in driver pleased color, had sales in results. Texas into quarter the to some that seeing spots, that and quarter residents with weekly and closed be tourism, accelerating international has state has back always lifting XXXX. a impact both April. meantime, restaurants alone York volumes. mentioned, as restrictions add in been substantial sales restaurants basis point, lack and the saw These company by sequential these during of markets versus In and we the to of not remains for have part, continued opportunity a Hawaii, pockets sales unit say which franchise it guidelines. the strength higher pleased

In sales our underway. reinforces levels, average that view our in which weekly is XXXX fact, are exceeding now recovery

last compared XXXX of positive the news. restaurant is five capacity to digging efficiency margins the in for our one we and quarter bit And the also first highest achieved all the executed deeper, This in the operators utilization XXXX. company-owned as operating was quarter years. initiatives improved a implemented margins we've our For

expenditure to restaurant million. of planning To the to the amended to happy our our agreement, to increasing foot most which and allows restrictions we our expect share Short of being increase anticipation more COVID, accelerate have since two As open year-end with of million this will squarely $XX new us development positive restaurants in company-owned the This that focused capital growth and pandemic XXXX you we to foot been now further one I'm the existing onset by New three including week; OpEx, earlier by end, credit But Jersey. vaccinations, and $XX Hills, with we're operations, managing working know, we future. one strategic and in lifted on that on investments. of future further, news

technology and have the to the XXXX, to authentic transformation of restaurants share productivity I'm of digital be reduce digital in use goal four And in also remains We another which team. that did table a to digital it technologies, then, our our and become friction In XXXX. foresee stakes hit, it expect we excited not industry. investments one shared to to also open forced and while recommitting COVID in experience an we're guests business. restaurant our us our to the early other to top three increase is three that way we as enhance initiatives. in It data

We what doesn't. demand, year, we that the proper earnings works and have a there's last over and a learned we generate including and guest sales what investments. almost tremendous know And growth with amount increased acceptance, can

cash now started capital a return business but credit initiatives, opening balance the of cover million markets further and like franchise I'd focused with repayment allocation. our lifted our our team to In sales and debt, the on We on success. and over Once a dividend turn shareholders. we're do Lastly, our April. recovery to this that including payments debt of to distribute and not summary, we shareholders I'll of goal growth progresses to sheet, year. down the in to to are the leverage as members certain ample Chipman our only more us at partners our cash achieve touch strategic for We'll as will a see comfortable path continue intend our year to to intend continued with to so. a ability Kristy we're to continue business, in With ratio, that monitor leverage later on investing ratio allow we call to energized allocate reduce have $XX agreement specifics are our to until capital in quarter. resume and the pay to future are the recovery, we to and to restrictions

Kristy Chipman

Thank you, Cheryl.

income to we reported XXXX, XX, March $X.X the ended quarter which operating $X.XX $XXX,XXX XXXX payroll quarter of net $XXX,XXX expenses. It first per tax included a related employee or share items. tax million to costs million income credit, the $X.X income GAAP $X.XX tax Net severance-related share reduced approximately first also compared the $XXX,XXX diluted XXXX. or of For of diluted in impact benefits income of of loss net and retention during per a included discrete

the $XXX.X revenues and non-GAAP XXXX. XX.X% negative restaurant million to sales March. $X.XX Compared by to $X.XX COVID. XX.X% negative were then January, we XXXX. an the in the million of adjustments quarter $XX.X prior restaurant XX.X% declined restaurant as negative quarter in share impact in February, million in comparable quarter XX.X% $XX.X in month the initial versus sales January, were period. and XX% was in in for million Company-owned for months XX.X% of of to compared March these Excluding per XX.X% earnings $XXX first to the XXXX, negative compared XX.X% increase compared XXXX the and diluted in by common for began February, were declined and Total in Comparable sales negative to lapse quarter were

our the was quarter. impacted XXX of have positive sales X.X% due restaurants improvement for the can you Boston, operating increased as experienced As into solid to Cheryl XX, negatively and earlier, each quarter. points Quarter-to-date during Furthermore, see, which XXXX, to basis mentioned continued Manhattan. in compared second period Hawaii April as positive by we trends

same sales and of XX%, that comparable X%, positive versus Texas, XXXX positive a our largest respectively. time Florida During and delivered few markets, California, period, positive of approximately XX%

these as of increase. optimistic are sales move locations that We more levels will reopening markets our restaurant greater in towards

to of XX.X% to as points some income for beverage same from the had primarily $X.X much was to quarter Food of deflation time. points X.X% the X.X% and XX of Quickly benefit was revenues last of in of related beef operating up at sales However, will compared basis XXXX, down restaurant take XXX were percentage year, flat approximately a out for the with it the lack first we while basis income rounding for quarter versus quarter. quarter million. beef franchise place the quarter costs the

our protein beginning to prices. higher continue across we experience are While basket, to we costs monitor

costs driven second points to XXXX, compared beef. between and our to basis by basis We quarter expect XXX beverage primarily XXX and food points increase

basis beverage basis in Our restaurant-level driven sales quarter improved operating restaurant we expenses this restaurant margin, as versus XXXX and points XXX by XXX versus and and food which labor points plus expenses XXXX. define

For operated XXX quarter, our open that versus XX saw points labor all savings XXXX. rooms dining of with basis we restaurants

expect compared unit we labor XXX quarter of $X.X and volume. primarily Marketing basis the remain revenue, and to We decreased to expenses. XXXX million $X.X and points in of due first between will as were to increase XXX that X.X% average recover advertising of basis XXXX, an points million costs compensation-related efficiency to G&A

quarter, at $XXX.X net and Subsequent we of credit XXXX. the end the at of a from paid had our facility. liquidity, of down of the the $XX.X million end to million quarter, down debt debt position cash in $X.X to on net $XX first the end million of company the Turning million

amount we was are I and that confidence team's investments provide Along rapid would members modernizing of precise in our the increased cash ultimately we As strength of many debt marketing data May have $XXX balance along our resiliency to tech Xth, stack, systems, and the business. will making, seamless and our to like decisions million, was currently that frequency make vast growth. management the our and with and restaurant the reiterate check $XXX.X of know for our million. the we leading foundational outstanding with experiences leveraging to technology through and our guests, revenue team enable

We continued between savings building the margin back $XX be realize restaurant-level toolset and reflecting expenditures augment capital uncertainty full-year. and back sales the a administrative expenses Due $XX $XX environment, house further between providing for members' between general million million a versus the learning. further team enable not let million that also X.X% XXXX. Cheryl. million, are of be we'll me expected Total guidance of stronger machine expenses $XX powered be operating $XX today. and operating decrease to expected respectively, are and believe will recommendations are X.X%, by tasks Marketing to the between And and to or $XX our as with that be automation intelligent we call in everyday million expected With us million. to to and turn to

Cheryl Henry

shoulder-to-shoulder. and get but Thanks, It People to closing, may there, that to uniquely our recent companies together is months anniversaries ones, socially in no get celebrate about are capture take we in opening. Kristy. uptick for safely the loved gathering a more a are return yearning demand Furthermore, would normalcy. celebration to mind that looking a we In operationally, a have great continues ties few and I celebrate and graduations we as to doubt provide and the is and reconvene well. Strategically Chris There's alive group's to Ruth's business events. say and small Much and savings have in pent-up positioned inquiries like birthdays, seen my families is happening. the reestablish and experience plan. large country

questions. With We creating model for tested stakeholders. are time And up for that, experienced at we the have value towards line we'll all open executing allocation a it. geared capital

Operator

Thank you.

We question-and-answer a will Instructions]. now session. be conducting [Operator

with is from line Please first Our Stephens. with comes question James Rutherford proceed the of your question.

James Rutherford

and Cheryl, Kristy. well. you're both morning, good hope doing Okay, I

years. are number this development, restaurant of confidence from Just here, that organic specific be seen What new for key today the that raised of XXXX to that builds you the new a from increase gives units in seeing looking three any company-owned your also, in in four to that target? at best portfolio? would outlook differences kind we've you And unit will unit have your Ruth's growth existing to that the

Cheryl Henry

the for Thanks Yes. question.

pipeline when remind So COVID hit. just to everyone, in growth had we the

the we spent these working than time marketplace these this with the of valid. that are some locations And at and we were is market have But those confidence landlords. where point, So units units your that the some looking through. to seeing

and mentioned years that forward indicated, that the been as in markets high Moving Ruth's is provided have we've as experience demand demand. has the -- what's for what for is XX we expertly reopened

so bringing pipeline in was this competence And of your great --? the outside, second level piece What What of fruition. James? a have we to

James Rutherford

new Yes, existing. any than whether second was part the the just on will units look different

Cheryl Henry

a that could that, work. it the And expanding So demand units footprints things around for foreseen previous forward and but be interestingly, the started I like have outside I what these on may some And mentioned our around to that generally done expanding our bars going like we have designed we has think patios. not and new footprint. look call

James Rutherford

return ongoing that you if a source whether you efficiency, points And enumerate the great. then kind of And XXX for labor to where the to could where of again as Okay, follow-up, -- regards in that's basis with basis guest room, you of just us modified is? Thanks XXX points forward. dining think starting can that's think guests you whether of expectations service of of to that much. as meet a are the path have to very place, still you kind steps in kind still the viable

Cheryl Henry

Great.

to a floor. right We do that say we that I points that, basis more a We've keep little XXX you that. the kind restaurants points labor some more certain recovery. add built expectation to as We've we believe we is full So that our get the that provide will restaurants taken we in of of look going operating for forward. we quarter an volumes. overall, were sales bit they basis level back us know to need more XXX And think this guidance we will that XXXX to that's to the of at to some the validate during of assumptions. do a our XX restaurant into as staff that those a wanted achieve

been and opened savings However, from that effectiveness. that savings full coming have were quarter restaurants efficiency the within -- for we're utilization seeing the the

will throughout to to reopen that levels. XXXX believe do as stay we that so continue And we

Operator

you. Thank

with Brian James. your line Please with is next from of the Our Raymond Vaccaro questions. question proceed comes

Cheryl Henry

Brain?

Operator

Brian, may there queue. Brian, If are are you you be you you. you Brian. rejoin not, there? Thank to you -- muted Brian. the are, can Oh, able

Brian, rejoin queue. the Okay, please

Our next proceed your the of from Miller Sandler. question comes Nicole with is line questions. Please Piper with

Nicole Miller

day day in day another. parts, the part about the to in talk Good or across pre-pandemic Can you. doing sales one maybe of lunch days about you're about and normalized and consumers week the on there's It favoring if dinner, I'm you XX% capacity. Thank even addition XX% very the over brunch of stores or morning. many like now seems thinking of or that's

Cheryl Henry

Thanks, Nicole.

lower again, bit given earlier as and a back group surprisingly, I to to kind of of in I year. the that gathering dining, some expect of demand in, is half comfortable we So week coming And feel back the groups that's how little and softer. for private towards people more think just not mentioned, come as the

generally for swing we notable yet. We or for not really a We're open markets they're part, been not business. us has day as lunch some for far that dinner-only that do have the significant As system are -- lunch. across open are

So that remains in dining days week, on demand but from And there's of dinner the of early really come the weekends the week. a bit focus. events seeing later in and private again, weakness really

Nicole Miller

And last made talked you it's Great. think last I then also reference and about corporate had time, you business, and healthy. call, about quite

you So I et necessarily spend, is of that's that Essentially, the Do fair? a of like entrees, amount it same lot the local seems travel. similar corporate traveling alcohol imagine without they need consume don't cetera? guest;

Cheryl Henry

Yes.

markets business mentioned if about in organization local that’s you dining dining, if especially of that it's couple generally two return, guests, the like not think and piece surprising we think or you seen that parts. Texas. business. about we And have And is travel the a in as business the we of how So really private will, -- will, way some the you and that's the group right. we piece, so then our about notes Florida that of an either And some

comfortable some understand about talking and the is our And found local were -- really we back for what The doing guess And year. out around when back they in dining we is the to good members back. private guests that the trying the I the last what around in necessarily. dining so, of might call with family research, half dining sign mentioned that group with businesses of group business half dining towards market, also will yes, coming the and are the to some upticks I and feel happen not

And rebuild some as that confidence have -- we in to well. so again we're starting

we've check, checks. as list far seen as happening what's about point your in to seen and have the We

spend of see So to we're go that starting up. some

is full not that capacity checks, the week. running dining Your at the early we're would, we necessarily seeing point in alcohol private same around

that to yet So us. return is for

Nicole Miller

then we on really And up mean delivered. should your going some And the what consumer last to do clearly decided because for you digital, the and that's delivery so your experiential assuming I or everything definition define had I'm also order to off-premise? brand, enjoy. about just hospitality. technically walk what understand. define, that's what come there's just And they've how back to is the have be angle. is picked question through imagine but mean it I of I is yet, -- digital application, an And this

Cheryl Henry

people interesting how really order It's blue notes get off to I because I been night. and I to I chop the want do cheese with personal saying, get speak everything have, the it salad, every

there demand ordering so been of this has really and overlay touch this high mix frictionless maintaining experience absolute type from they But have around that interesting And experience. people that high of same this delivery. the hospitality, with

bars And experience is Having that, authentic use between where the it our data our it. us, root, in rooms, to so experiential number way in and members I team takes going I our think that that restaurant. one And place guests find doing that for our all relationship said that in even back building beginning, in said the we ways. from and enhance about it's to technology is the to opportunity dining

about knowing of needs. the where the understand And necessarily guests not putting it's might believe we and that's see guests' the opportunity making the they're is. as more that data using in them we their technology the you directly understand things restaurant. into and hands they and about sure some But So in

we be team the It's The members use new what productive really technology, how doing. processes, is they're behind to to and at the scenes. really enable new efficient piece programs, other

it's our enhanced approach kind experience, in friction, to with sure way making in we as different about when it. workforce and who from data doing be sustainability really talk have digital, wants in of effective productive removing new well So tiered work guest information and this more could as and we

Operator

Thank you.

the questions. Our line from Vaccaro next James. question Brian with Raymond proceed is with your come of Please

Brian Vaccaro

Hi, thank tech the earlier. you, issues and sorry about

of we're disclosure weekly sales including it be think just -- And all on make around three where quarter would included the sure the the XXX,XXX page kind higher On typically. the share last the what to weeks. the Easter same business the appreciate if that is I average the but to-date quarter-to-date, you can you week that sales, week weeks

Cheryl Henry

weeks those XXX,XXX. Right. a Easter sales four first for about XXX,XXX quarter the for is was

Brian Vaccaro

way and great. include? Okay, basis how us there Hawaii, you those sort at you that Thank help Boston, XXX And what AWS could that many drag from be Manhattan units? point of And you. does units would mentioned excluding is a

Cheryl Henry

what I those. get be So units, tell can back would you, X and we'll have its the on to AWS you to excluding

Brian Vaccaro

That's helpful. can back Okay, offline that. okay. on circle We

-- this environment? quarter, out settling And and off-premise was first the mix sorry, the higher sales it, the where in what or the in if I missed last sales are month in two dollars

Cheryl Henry

X% so off-premise were of X% landing weekly XX% So And per forward. average see sales going sales, and about we about week. $XX,XXX between it

have I'm part your So Brian. sorry, question, might I missed of

Brian Vaccaro

No, just asking I about. was

and around and $XX,XXX sounds volume that holding pretty is it dollar what March So April. Is that like steady, you said?

Cheryl Henry

Yes.

think the reopen I percentage fully we're to with down. starting come see restaurants as California,

is would And anchor percentage towards dollar So the $XX,XXX. around versus to go-forward I gap more X% X% a XX%.

Brian Vaccaro

Okay, great.

Kristy Chipman

Brian, reminder, that X%. as was pre-COVID to X% a

Brian Vaccaro

Yes, yes. sure. Sure,

shade Okay. are in And I for Are make you you food costs, QX to if could, talking sure that to XXX the ask QX were just you about on XXX bps. page. comparing Or about XXXX, you under wanted a a we're to you be which you And saw to I up think to expect said even? year same to XX% XX% XXXX? the that closer I

Cheryl Henry

that's versus Brian. Yes, XXXX,

Brian Vaccaro

your food expectations specifically in inflation does what And also of as the basket you And for what in well food QX? your terms the expectations do on that are your how year inflation okay. be embed -- front? Okay, in

Cheryl Henry

Yes.

for second offsets seafood seeing items The we're and of there. year So Beef other some XX% lobster while are XX% rest the versus overall, like there the quarter. basket, particularly some pressure is related it primarily on beef. crab, is increasing to in to prior proteins,

is the the that for XXX the -- XXX of offsets that of of the would beef to range everything. majority going out. of it The so within the rest in be that the called And that inclusive line relatively pressure you're see we to

Brian Vaccaro

last to are growth. through underwriting investment then walk for And per helpful. that's those the average on are unit right, one cash you you you that me just average on expect the units? for targets unit? of accelerate Could the All plan sort the What's economics,

Cheryl Henry

Yes, it's in Brian, line.

inflation So some the construction, million chain standard capital think there targeting probably work do those given sure That everyone's we're expenditures just will is of around We're supply on $X I that $X to for issues. thinking staying needed in to about still make units. our million the target there.

Operator

Thank you.

Our with with next line Andy question is proceed the come question. your from of Barish Jefferies. Please

Andy Barish

Hey results, you How state limiting think you guess Texas, with impressive of have in those you Texas true kind better in do XX%, out the some XX% numbers really you guys, six-foot like wide Florida open? and what threw utilization especially capacity spacing and capacity places I there. of those Florida do or drive increases

Cheryl Henry

Yes.

variables Andy. you from in So tables standpoint so a a for great many Capacity of question, tables freestanding restaurant. many is matters. booth a moving it a it have of how just bit There's in versus from target

people So one booth. a in restaurant put six-feet percentage, you standpoint, higher can because can't a in separation back-to-back do

across So it does differ really system. the

we're in ways I to And your a to job, is, is the a that getting explain restaurants of do the still moment. point, capacity. What think Texas able and some we're they've restaurant. XX% and been at have in of done Florida one of turns I'll we generally teams especially fantastic the just number expand the that

they're We've earlier a so the that little trend and the bit to some seen partnership little we with dine guests, come that willing as continue bit open. And later. of a

we The space. people staff dining other private the and move around, is piece restaurant, really how utilizing through the

restaurant. and that carte sure For of every can we're seat in we the optimizing dining, make all really

kept that and XX% at One from about somewhat we the averages guests of health the talked our beginning, things employees. and that of us has safety

been, have we the following received. we guidance that greatly So

jurisdictions until when six-feet Florida separation. majority were our the week, Florida you requiring still was but open, And in of hear, even so up of this

it limit capacity. that So XX% range in right does around you

more not local into as own and QX But you're as local well forth. through different have more required their QX work from municipalities think this as officially our to to we do requirements so start Now, week that spacing. way and and has around Florida jurisdictions going see and counties states I of

give agree XX% that. to team many some capacity point able they're I cap So, booth and I was will I not is people at utilizing you're What a how see books. and is, with cap. being of there how back-to-back their to saying credit hit the people in would think you at that

I what have that release simultaneous some starting spacing requirements think at though seeing later, we're XX%. is us to of kept that the

Andy Barish

of the that. Right, of here even very seasonality imagine graduations celebratory through we of more How be kind I about rest celebrated an drifts the these Mother's the in but like obviously, in of you seems then XQ? Day go XQ? the days, how think quarter think And we would should times enthusiastically to helpful. little awes, things the it, Day, and Father's coming as lower should and a up bit terms

Cheryl Henry

Yes.

that's tune of on how open. with things per But than the it be with plays [ph] generally that that's So pandemic, should for and QX. to of, geography $X,XXX out back the shift. tends because and volume $X,XXX us QX higher if average look at a the think going as but see how sales weekly We'll to AUEs stronger sales QX average, average you compared QX to is the you weekly historical week I'll to call

Andy Barish

and it guys Got of you slice urban a sort you. Have some versus same And, tougher store on color sales of diced number? of thanks the like suburban markets. the yes, kind for

Cheryl Henry

Andy. Yes,

have we looked So at it and probably not.

remind can we're one mentioned and Boston, I numbers. can more we've color. Boston, that generally and in a urban From give That a and around think, suburban even one some forth. markets, mid-market the restaurant a by but the local give Kristy to marketplace, about to and that's still this, generally, XX% maintain little XX% seen capacities requirements consumer market, outperformed of me say beginning, about the so maintained have with there's we're I by seen you, the suburban, spacing at Kristy on specifically, and premium let just more color has we've limited market. to also But in speaking, little the Manhattan, mindset

Kristy Chipman

to our you Yes. to suburban to consistent. the of start tune And start about had been restrictions when see issues, by which at And April, the of you we but pretty mid-market really consistent. local look in fold operating XX come XX%. calculate to because outperforming to been the we about XX% and that's portfolio that's as the are pretty And the throughout restaurants, April, and it while the right quarter, rest

Andy Barish

part that why the franchise of reason the is comps outperformed? And

Cheryl Henry

point, excellent Yes, to based domestically. is. it's on seeing And really similar we're what it

So it urban California of part secondary is we those impact the point, those some was that locations, fall drive positive seasonal just felt market, yes, had the impact. California, through tourism and markets market. a quarter, company-owned of more to which especially areas the markets more the outside really, vacations, really But your completely and of then

Operator

Thank you. [Operator Instructions].

is question with Brooks Please next Our proceed question. CL Todd line comes King. from with the your of

Todd Brooks

guess. to success on you both, outdoor to morning you congratulations. and good had spaces a dining, during pandemic customer the traffic, which kind handle I of creating outdoor Question Hey, lot of

fiscal of outdoor something landlords If looks here, at that to those set we're you this capacity the to again year now a outdoor look guessing year? sense up willing comparing XXXX, last trying level. this and environment plan what because get versus seating I'm back that like to Is to inflecting I'm spaces. just kind demand of you do

Cheryl Henry

Yes.

majority to say for of So our and outdoor more little But Kristy a turn let I'll have patio. restaurants actually this, me detail.

add point, you outdoor that worked outdoor well to we if your out for us. dining able room. construct, So some To will were

there I demand the in still for being outside between opportunity that We kept want because really that people they enjoy guests, for to still dine. our and think that of opened California and we're phase outdoor As outside in was and be dining.

take And had kept to landlord it, Marina more partnership space. we've use cooperative a we've opportunity, demand as an on and extremely Rey, so as required there I'll was has And where to The the allow an real example. del that. us

enjoyable But to experience move to also yes, be are inside, So people very outside. it's some they're and moving an ready inside.

taking the where dine. really a go kind want to guide us we're as and as letting guests So they of that as to we case-by-case

Todd Brooks

on Okay, just out, whole productivity should volumes strategic back as internally what points in you. it skilled restaurants now. day better targeting out and Thank more shoulder goals weekly volumes layering basis what customers the streams over you with what and that in in an you're building settles to have parts. sales when of learnings incremental concept off-premise or with incremental great. then look I And driving to unit back of from guess be and I'm any for where on are XXXX pandemic. question, so all average these being This pandemic return for do developed and depending for not during time, I clock wondering more routes at think traffic XXX you structuring the been

Cheryl Henry

Thanks for the question, Todd.

I think and still just volatility geography early given little by a the markets. it's how

when new Manhattan. internationals not as understanding, a it'd high really same is So us, the for the Boston, across same be for Hawaii, system example, a as which statement coming back. to the market major, very and make hard

us looking more point, absolutely so during allowed through that turns, think business. successful that the things that COVID your to revenue I are this et business and -- sure productive to more at drive stay were we we cetera, making to those in be So table that

we're set reopen expect what a and market, that target have and as run. the business we new of set -- we each understand model business kind how plan to we So to

those heard numbers reflect you from going the Kristy that assumptions of some So forward.

Kristy Chipman

to And XXXX right. Cheryl add, versus just mentioned exceed in we Yes. starting levels -- as XXXX are script, I'll her

comeback So platform. we a aided Anywhere seeing the Ruth's by are

still there growth. further So is for opportunity

still when we're timing of watching what comes growth the think kind closely. is of that I

Todd Brooks

return to return volumes as segment type of That's of a those without the full a it's And -- business customer well.

Cheryl Henry

Yes.

Todd Brooks

I'm average picture out starting sales where bullish settle pretty normal. to things new piece it in And weekly paints a together. for the

Cheryl Henry

not celebrate And a we that in demand And around love still and events, groups for to the fully back us. have then and research opportunity I to desire there returned think we But come meetings, do there's occasions business do. private actually that’s will question to Yes. so they of to an that's and year potential the hearing point, your I that have that's doing is, the fruition. believe and yet gather be

think order -- business is that for guests they're to when we been looking it’s Ruth's settle when I as dining going reopen that and restaurants experience the a will deciding that. start gets demand as want and they us. we to And And clear, just that And channels where us. again, pieces so Anywhere the of with it's indoor an even of I go back And it's at have the be the a Because little early think will that to and some there and say behavior. out. with exactly

forward channels. little early think we We private but dining viable is that Anywhere a viable specifics, give going the a a viable So Ruth's and channel. think is think they're we channel to certainly

Operator

Thank you.

comes next James. you mute? Brian from question Raymond the proceed Brian, you're with could if with Our is on question. Vaccaro line of your check Please

Brian Vaccaro

earning A rough season. morning, sorry, it's long been a

if So I just could. two follow-ups quick

So back the if seeing just you're have sales issue? been that where it much any is servers and are income dynamic hasn't Or tightness higher server tips really really a mid-March? in challenges an surged Can so the bringing business there? your you labor frame as market, you're there what seeing for I in curious much was since

Cheryl Henry

Yes.

the me, question right. Brian, You kind of answered you're for because

And above see been the normally where we fairly are sustainable. of to with is is in it's very an think wages hourly I of a much work our in house you what And high. fortunate front space the the wage industry. Texas would as

consistent the and whether mind, that how So I us is It's workforce, tenure there important management then our and efforts, were in And we think keep hourly over to again. that's experience over deliver us. of retaining. in helped

just going team up premiums pre-outbreak they make sure offering pandemic want around change, our with us And retain each went of the all that then so well pre-pandemic as for so as efforts to make through this level members their we this that wasn't them and forward. to those helps and of I sure healthcare benefits post manage some through grants we to back. workforce team our and foundation outreach people, we from of think our said, a really the people how But refund then as laid the things come to

Brian Vaccaro

it that's the like currently relatively your traditional dollars looks right, All here strong walkthrough planning soon. to just seeing. to context across plan digital spend And demand versus give channels. thinking where we're some And increase Maybe helpful. marketing you on deploy you're there on maybe front, the those relative to pent-up the

Cheryl Henry

question, Brian. great Yes,

the related talked strategy that and digital data investment building about to And so is that we and platform. we're ensuring

So some as is some an the line in CapEx that future of in you'll it line investment and marketing the and see for the well.

Brian Vaccaro

it, makes sense. much. Thanks very Got

Kristy Chipman

Hey the question Brian, Manhattan to the circle your just some Hawaii, that you Boston want how AWS. to restaurants in go, operating are before – of affected I related and on seven back the in

restaurants AWS So those weeks $X,XXX system-wide during of seven the April. lowered by four

Operator

turn no Thank would closing you. questions I for over There further at time. this the Cheryl any Henry remarks. are back like to to call

Cheryl Henry

soon. speaking forward and I Thank again with morning you, everyone, this look Stay to you for joining us safe.

Operator

conclude Thank your today's participation. you teleconference. does for This

Have day. You at a may time. disconnect your lines this great

Ruths Hospitality (RUTH) 7 May 212021 Q1 Earnings call transcript