KRUS - Earnings call transcript Q4 2021

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Operator

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Kura Sushi USA, Inc. Fiscal Fourth Quarter 2021 Earnings Conference Call. At this time, all participants have been placed in a listen-only mode and the lines will be opened for your questions following the presentation. Please note that this call is being recorded.

and we Benrubi, Uba, Benjamin Chief President Investor today, Executive and Porten, call of Steven Officer; Financial Relations the have President Jimmy Chief Vice On Development. Business Officer; and would I the to to And now, like call turn over Mr. Porten.

Benjamin Porten

everyone, afternoon, in access joining. can have thank you our be release. the It fiscal section. fourth found Good By operator. all everyone www.kurasushi.com now, Investor you, Relations and Thank earnings at should to for quarter XXXX

remind available would in Private our I to over considered in way, are everyone accordance today XXXX. turn begin remarks, Reform to not formal future our and isolation that with evaluating of release. are our of also actual prepared numerous could We GAAP risks during should that Also statements need operating detailed performance. be and to you for to can future results the guarantees could our uncertainties filings results comparable earnings that a we Act certain useful substitute our statements the presentation to part we discussion GAAP. information measures, impact condition. performance, believe that subject results measures be in Jimmy. nor refer Before and in therefore, as will the as to will The reconciliations which And I call, of SEC financial defined should Securities non-GAAP of the what this forward-looking we include like a forward-looking today's additional put statements of of discuss for our under out not to call discussion With all These the reliance not risks we cause undue materially on differ more from them. you expect. of are These Litigation

Hajime Uba

XXXX thank believe they meaningful we resulting strong feel our its experience. testament operating to comparable line get our items and joining in the by us fiscal quarter, Ben, improvement for COVID is variance. profit Kura that their strongly challenges recovery X.X% We figures. you, continued top and in are the of to fourth generated despite brand, business I'm level, high fiscal for growth momentum XX%, over previous quarter, our delighted including excited presented or see because by guests our a the of Moreover, On to menu returning everyone, this uniqueness growth the over favorite delivered new pre-pandemic sales to the are you, performance. restaurant we a the today. profitability during to versus level sequential the our connection margins narrowing in guests of gap pre-pandemic amazed of Thank

began XX% more weeks capacity provide on X sales quarter dining [foot with June. of fall] operating our in-door performance. the limiting color first restrictions, restaurants me our to the for Let We

As the meaningful California restrictions of market base, half a were revenue contains our these system headwind.

our previous revenue to to I'm to we mentioned pleased that comps $XX.X system-wide those ending restrictions X% of we the comps fiscal quarter's X.X% million. as the our earnings of of overcame quarter that of call, increase previous capacity end to This quarter, with through general figures. following as the system-wide the fiscal continued exceeded XXXX. compared XXXX revenue However, In XX% over initial with $XX.X of fourth million, setback compared this an of say to pre-pandemic

restrictions has QX, of regarding Our comps phenomenally at XXXX. market, with to as compared in no particular, operating performed [fixed] which XX.X% fiscal

momentum to continue. we see to this we As strong fiscal pleased look XXXX, are

of XX.X% as increasing we've in million. months first $XX.X with of QX X of with This been XXXX, key trend October historically September to our the sales of sales QX further $X.X at robust XXXX. reasons: resurgence in the for remained Our compared to stronger seen by in in minimal fiscal August revenue deceleration sales fiscal delta quarter. very benefit million up spite in million. an compared of continued of that is throughout of XX.X%, of to we've has sales as additional XX.X% Through the October variant XXXX first August. generated comps seen weekend buoyed notable $X.X up are COVID beginning Strong X particularly markets we've California QX Texas and with and onward the

largest at is to corporate To in our that effort a high to as start appreciate pricing it we in took on the consumer our in single-digit September, seen have the The clear, history. result. offset pushback, be profit single we inflation, operating making of budget all second event

guests value. excellent pricing In after saying seen fact, even this an that we've Kura remains

Now continue to excellent basis. prices recognize unique fish beyond on is experience our unbeatable we ingredients value. that was into our to dollar-to-dollar proud below food I that dining our efficiencies substantially that and an see those for remain even, we many serve customers reinvest the of goes an brand that the industry, truly value premium in and our operational a our our peers

Now to held system of I QX entire the with off-premises at $X.X to strong like million discuss the would revenue of $X.X off-premises million. continues our incremental spite Kura opportunity. off-premises the sales which of opening previous revenue quarters In as to our compared represent experience,

by quarter this QX's in greater increased of fourth but largely driven than XX% capacity overall off-premises to is in QX, sales mix, X% seating California. mix Our due lower was

at quarter. the were for us among efforts our capacity Due restrictions clock required fully-staffed dining unprecedented off-premises I'm made recruiting to speed. our of completely of operations saw sales With efforts round the XXX% teams, the an expect half our the system moving from to top industry increasing recovery expansion, to is mix the XX% our and up California, able for and recruiting capacity California. of our we almost hiring capacity operations in continue be the in by proud time setting to and the mid-single mind workforce for we XX throughout retention upon of teams digit capacity by in [indiscernible] going We restaurant indoor peers, of us. especially forward. June Like

been point we turnover a effort of we've Earlier course, our our Of making to since and every laurels hardly this our were pandemic, figures. low push. to pre-pandemic rates pride, the major on resting to return employee are

us. to we timelines store to rapid advancement. grow As we a this These is believe built our success are To sounds, simple fundamentally wanted path strongest employees critical management retention internal our those A to on reevaluating our systematic, that need people are for be end, the QX projects will to we as protocols employee working continue work. appraised being we growth transparent alongside career candidates, continued it as on Farmer where Arlene joined meaningful bolster training and opportunities towards and are our our October. Del long-term in with at this everyone most like are who recently as served clear brands Chief People Chief want Taco, to one to are guidance on where Officer, employees as had know we extensive for Arlene career us announce we working with their our People CKE of Petokas working effort, there pleased hiring he and the in industry Boys, them. restaurant To Officer.

a its these things Analytics. are pandemic, fortunate been Introducing off-premises last we importance pandemic years we of redoubled founding ago. our our has sure business. created been year, tech-driven efficiencies landscape efforts integrates expertise, DNA We've Technological brought the we And and its Japan through industry. we focus These that that continue the to especially app CrunchTime, as the part mobile fundamental in new have XX and industry a navigate to our new fiscal and in have very since in will strategy. about forefront. growth company the our of the to of during have We the our innovation be the major in and investments implemented almost since technology benefit like hospitality our technologies channel and been from automation changing tremendously reward ] to Forum key program our Arlene's [EcoTrac point are

table ordering and insights Our Square pilot IT Other our which continue side captured side expand and including by programs, of include all our will stakes every accelerate to at Director for card will adopting first credit transaction projects. unprecedented be drink guest processing, us payment review hired noncash give our to Square. now we table

QX, of for the XX% Our XXXX. fiscal with the of end rewards membership over year growth growth total at quarter momentum continued members in program a XXX,XXX of over

company, implement technologies heating by also [indiscernible] will NSF used and parent ATL certification additional pending our We use. commercial for

most total bringing XX% unit in history On year XX closed XXXX the with the was plan new total productive to representing our Washington, June the company. for units, We the the opening in and our development almost of X growth front, units. of year development system Bellevue, a

exceptional team believe did and maybe closes yet. work vintage of strongest Our XXXX one the fiscal we our development

broader a restaurants. performing already openings In markets fact, these portability among underscore Bellevue new and X our of Fort our of are the being are Lee of Kura Sushi in Most top view concept.

year plans our XXXX is we the restaurant for expect openings. fiscal even to of new target current have busier year, than terms XX of to In X a an

We unit have the which of X San for in opened October. performance have Stonestown of fiscal executed our pleased Stonestown, new units, been Besides Francisco, in first which leases with extremely Galleria construction. in XXXX all were we under

fiscal and strategy markets, in-fills. continues new and Massachusetts, of Arizona, this Massachusetts geographic to a new year Our Pennsylvania. Arizona, mix Brand and markets be are

once we'll is to whitespace potential the continue commission COVID particularly ever closures, and closure larger due of restaurants whitespace finally restaurant new We behind pandemic-driven is believe than study us. to our Japanese a

excited well. are across the for our certainly and us year to distant momentum guests growth new of Last the memory our and with Kura in bring was America. pleased are to year that most was difficult We case Experience industry

our However, which decisions credit we of to their parent $XX allowed were us financial our through fortunate strategic revolving some pass success. long-term have support company for the to million facility,

these exit mentioned investment, development so as ever, pandemic. much unit I in our us the year if earlier, more recover busiest quickly we resulting to ongoing positioning As CapEx additional

our negotiations a profitable As the able on able how or extensions been including like long-term on financial with new base off-premises opportunities were revolver we The pandemic our to transformative we've been discussing several of period, just revenue has bench. our much landlords focus provided units. most to are deepen favorability, we strength,

their that discuss to COO our future. the fortunate new our members for the incredible first new have plans abundant our shares. the CFO, been net CTO. financial follow-on with the Steve? for and In over expectations. resulted and that, liquidity. raise, $XX With let We have of team excited as financial to our a offering we as provided, continue of Again, work CDO, July, aggressive our Class this and over to which we to Steve freedom capital call than With briefly strategic in more turn and about revolver me support ever results would transaction proceeds exceeded are X,XXX,XXX to well all parent our sale our first like A a I our thank million conducted my welcome through of

Steven Benrubi

Thank you, Jimmy.

total million of XXXX. California the Texas June that with quarter, pre-COVID grew capacity to by in For past relevant by X.X% early XX.X%. as of versus comp year the market increased growth X.X%, most period. $X.X compared basis, $XX.X to comp sales fiscal measurement by fourth million the sales the On largely is period sales believe while were our due restrictions, We down

Food XX.X% cost. sales compared to as sales quarter, credit prior a year primarily employee recognized XX.X% performance to in to million a XX.X% volume $X.X beverage sales Cares percentage reflecting XX.X% the retention to under a were of and related Turning of costs decreased and decreased. year Labor higher due as as inventory the percentage in spoilage costs extension. sales and largely prior and improved normalized from Act leverage quarter, the

been million staffing labor quarter, XX.X% operate due our quarter General higher were the from The leverage. X.X% in due administrative due year from Other year to XXXX. credit, restaurants lower related million percentage of to to the needed primarily XX.X% a sales to expenses quarter percentage compared the the of year decrease fourth prior expenses in quarter, sales as effect in XX.X% have a compared sales to related at capacities leverage. a minimum costs sales to of reduced of improved percentage was XX.X%. as quarter to sales the costs and Occupancy primarily higher would also decreased in $X year. $X.X as last and Excluding and fourth to of sales and prior the the prior

due Excluding was This additions $XXX,XXX accrual, our the to and support an as million. our team primarily made administrative expenses to of growth plans. compensation-related have accelerated $X.X would general litigation impact increase we been to expenses

diluted share Income quarter $X.X $X.X XXXX. loss expense to million was administrative net to XX.X% $X.X of was XXXX. of million expenses quarter quarter per prior to in of compared As tax in quarter million diluted a percentage the tax share the adjusted compared of in of loss of sales of EBITDA quarter as fourth was XX.X% the in year the of and to the income a sales, general net fourth negative fourth diluted as per compared fourth Operating percentage a quarter of fourth was benefit XX.X% the adjusted to in Restaurant level of Adjusted $X,XXX compared XXXX. profit operating XXXX. And percentage share or to $X.XX an to per an was loss share $X.XX XXXX. loss $X.X compared quarter. fourth net or the loss $XXX,XXX improved a operating restaurant in of was compared $XXX,XXX million Adjusted $X.XX $XXX,XXX or $XX,XXX loss of level XX.X% or of in to loss $X.XX operating per million diluted compared XXXX. sales net of $X

now to the our fiscal cash and million cash fourth and and of liquidity. outstanding during balance debt our on down the we At quarter. cash no equivalents, we million $XX the paid our of revolver $XX.X had end Turning in quarter, as

of beyond. and we the fourth to $XX.X also fiscal also our follow-on not capital only proceeds net on Class our common stock on down A of fiscal quarter, our plans needed debt us allowed our shares growth for completed approximately but cash execute with X,XXX,XXX During of successfully The revolver, to provides us our perhaps XXXX pay million. offering

year. Turning to for outlook this fiscal our annual

are providing guidance. following the We

and between sales million. $XXX million $XXX total expect We

the It and operating that expect material these the unit per XX of we further capital of units million. We situation. or assume expect and a percentage experience administrative expenses restrictions we opening expectations new net in of approximately sales X bears general as no to XX%, that downturns with of mentioning expenditures pandemic $X.X

have performance to of current of the highly quarter And industry seen based current volatility. appropriate given the above while fourth COVID-related are date 'XX. fiscal the environment, are our the as in results the expectations in on we recent 'XX to Our that fiscal vulnerable quarter as restaurant our well believe we remains first expectations operating

turn the to back Now call Jimmy. I'll

Hajime Uba

our concludes remarks. This prepared

line questions answer for happy now are please you any We Operator, questions. to have. the open

with during session, answer a response reminder, translated us. Japanese is in may Please before As the Q&A my I English. bear into

Operator

line Our Strelzik first with comes of question the Instructions] [Operator Andrew from BMO.

Andrew Strelzik

trying inflation the that that on business. momentum Congratulations wanted to Great. or understand right. -- the All certainly about you're you're to seeing. on in taken Where I you're to the seeing put was start expecting or the having in that that context pricing you're talking relative

So across does how And high what single for cover? much XXXX? wages, expecting are commodities digits you or the

Hajime Uba

your you for question, Thank Andrew.

would your correction answer quick prepared a to our question, we I Before to like remarks. make

We X X. leases, have executed not

question. make Stonestown. besides before leases just Andrew's sure answer executed want X you guys with to question? answer So we your I you could Steven

Steven Benrubi

state to average September reiterate, high single-digit bit the just We the But every increase for you effective Jimmy, of context. little environment account one over made bit X. a into Austin, of the a we move areas also market And metro and where pricing a or merit in. let's at for may from pricing basis operate disconnected we little level we instance. -- really command some or Houston the a say, market, on Dallas different took and in competitive speak pricing I'll Sure. to to give further it pricing looked on more our

a offset very puts those At that pleased for that. the we much are We're still from detail So and chain pricing think reflects early off we as and leveraging say encouraged pricing that too company that of have we the of lot the has have between rest nonetheless, But primarily we'd indications market. September we're takes feel, in we're QX nonetheless, like we the where approach stand the of in a outlook of may Jimmy first of we're food food well. in and time, that that noted, to as we about about dealing a little But and of want inflationary get very there's well positioning same in volatility what and to change the pressures we'll with supply we still come labor. just the those how having where better unclear as challenges And not that with been we in position that yet was still the And with think for great a also with value couple the much are taken getting into some where the sales as months know categories we the labor a increase the go in something costs. both positive. year, took on how the feel bit we're X.

Andrew Strelzik

And benefits curious seeing around helpful. then unlocked That's the some And And anything kind doing would was little in the you're side Okay. particular? efficiencies around if the that new fantastic. you're prepared that of kind conversation you've can release more color you're forward? and remarks, there a the realizing. in where what If frame press just I'm going biggest just be on that there's of you

Steven Benrubi

Yes. -- a little to just bit. speak I'll maybe first

about. and conversation add shortage at some well or frankly, to with degree I have of challenges labor we we've about very able our just space we the respond how in were are costs the looking staffing to been I the very pleased talking not think some maybe with think that experiencing others what in -- might we're restaurants we're is of and on been

open, to with training speak know bring we the they today restaurants new and the where course, some the stand say, ordering operational a at working in along can of table our of whenever up would of payment to procedures. drink some little efficiencies now. that. then, I that and we a system, going as time, goes I there's members like through, But with learning of to efficiencies And we and a that things them restaurant on there, that are have system speed team also side have and new bit means the fairly other initiatives we to employees curve on Jimmy from right restaurants virtually capabilities the have in the around it on We side same number new table full

Hajime Uba

translate will to Japanese. So me Language]. please add allow Ben in something [Foreign

Benjamin Porten

important projects would the our Steve We will initiative allowing labor reduce drink that payment -- most servers As work our site us increase this touch will to meaningfully panel ordering. and think the that mentioned, table are in be pipeline of immediate the this do. the required efficiency. Thus to amount be

In and simply meaningful opportunity our last margin margin because in this this more turn is we've well, mature we largest rapidly think comp is growth is in think -- guests we day, this terms per the leveraging. driver, be serve quarter stores. tables growth, by more that going seen as as driven to of we our is the And sales especially a

Andrew Strelzik

sense. look still laid that to if maybe understand the of yet I'm of new and you economic the the data I'm inflationary it's of just that. and thinking for makes been? you kind curious units units, right one kind model just the at I'm of new performance? think place way And of about last locations how of see. as could we now But a just just early, more think if some comments, across over the just the That of then think the in. I it's the some not the out Or think in you you strength of curious enough squeeze you'd new we're Yes. you to volume wondering number but of have recovery, maybe performance maybe years, about think like too environment, about better obviously do that's I the kind had unit than the do you couple points

Steven Benrubi

Yes. Sure.

think... I

Hajime Uba

ahead. Go

Steven Benrubi

Jimmy?

Hajime Uba

Language] I'll little [Foreign Okay. a speak bit.

Benjamin Porten

ever we've mention of sort particularly Troy, we volumes and extremely that Lee, Fort is tremendous in been is the the encouraged that clear the with seen, but so wanted there portability is question, think answering Bellevue, we just our appeal this volume concept to that an recovery, in like markets indication our the of Before nationwide. and strong as is we've by new parallel

Hajime Uba

Language] [Foreign

Benjamin Porten

we a new base. we've first set, system of we openings to we're store more that our with relatively the terms improves have In approach in reasons opening, think small selection. every data-driven the for that success new our we're our seen data site would such 'XX, fiscal And a because that unit be taking that especially

We our teams And terms every so marketing analysis becomes absolutely with done each opening. is and quality of work that excellent have in sophisticated more also up and teams our our -- standards. opening store more to ensuring opening

Operator

of Our comes the from line Capital with next question Jeremy Craig-Hallum Hamblin Group.

Jeremy Hamblin

a back wanted menu check to second on for great here. kind and congrats pricing come And of job. a I to

you have value. definitely great relative So

a I think you why that's seen ton of pushback. haven't

In of terms of the kind X FY 'XX versus quarter-to-date, versus average is average years check ago? for where ago, today check X years

Steven Benrubi

Yes.

we're of Steve. positive of with of almost reception this and went our Jeremy, is reasons that months performance single-digit So the continued the effect, the XX% price we the is encouraged quite X increase north against at then high sequential -- in September start guess October. about looking of pricing after customers were the in that by 'XX or speaking overall. change And August, I comp reception we when followed I'll into month XX% by about some

comps. And the further so change the clearly in we're sequential the outpacing pricing growth the with in

matter check we're those the the statistics since be at price. comps in given analysis of there move customers and Beyond components, we've around provide quarter what, still the that, traffic so the to but seen in better of strongly feeling good more forth. a We'll no what a about and very position our in being end comprehensive

Jeremy Hamblin

slightly to Maybe relative enough. of get some a question Fair then different performance. ask I kind can

trending? Where get how QX X.X%, plus XX.X%. Texas California a if trying in So sense to up markets quarter-to-date? those is was Just California down do for stand

Steven Benrubi

the strongest that with the California, market continues dealing recall, we mean of half were X.X%, be still to you in I down overall. dining And Texas. restrictions Sure. restaurants. first June, the capacity Yes. may But Texas

low And performances California In months in in talking of so to each north October. in those months. positive we of single-digit immediately QX. couple negative were And then we both Texas, in of California September about QX, low of moved comp double-digit running in we're the and XX% last

we're And again, just very move the comps. an so there. the numbers, pleased with on against really, just what's trend and on basis, be And those to clear, are happening absolute 'XX

Jeremy Hamblin

Right. Got it. Awesome.

of your you other -- In grew bit. XX% I a costs pretty operating saw costs, grew I so to terms other little significant sequentially, for XX% sense operating business sequentially. sequential your wanted growth. revenues a and Obviously, model's get your changed think

of other you seen a but thinking more also of or 'XX, have just You things to as range? other costs a utility business, we've of sense to kind about operating kind how item to normalize you where those That are for expect that wanted up kind a you costs. line get addition bit, in I were like quite areas. at do off-premises look that,

Steven Benrubi

a indications, with Sure. are us, to you business, a I'll those side little on And of a restaurant pandemic through us with. of -- business Other Again, the the speak basis, quarter. then pre-pandemic to the down both see on in from economics can numbers, earlier there's types what we've caution the they indications mean, labor and type to we talks but it of XXX can't seen that from first to question the COGS progress the economics succeeded lower the at in nothing that if the overall it our it's offset here the we an And costs there we points we of got about overall consider thought portion tell to we've would adjusted that area. of to side, base we where happened what's overall get COGS be you prime in also recovery on pricing inflation, pretty or once -- able bit volumes to take economic those XX.X% the of and it's where space. as we XX.X% also I encouraging sequentially, that costs, early way model well. that the outside got impact concept that terms this go-forward we of early move quarter much we the volumes it's always start basis. back is get terms get our and throughout a thus basis to very pretty easy staying prior was far, and to on there the when in want to kind made those and to labor was restaurant restaurant of I'm And areas, sales. leveraging of within now look recovery our -- strong be growing. to yes, high-value maybe going tells but And continue both sales. performance comp the restaurant

we feel like far, we're that. so And accomplishing

Benjamin Porten

costs. packaging on asked I incremental and would typically, you've And off-premises X So about, if the costs off-premises that costs associated Jeremy, add with growth be could delivery in the then

disposal no in-store dining, our a packaging X% we whereas us, have for because For offset there with order, plate to off-premises typically any X% rate. is are disposal, costs basically

for terms that's in subsidizing of delivery And is business not if And pressure there. up a so -- any delivery. of on cost, delivery a pickup. our then almost guest does the And margin fees we're entirely we're

either. So that's a cost not pressure

Jeremy Hamblin

Great. Then just question. one clarifying

costs ever the probably slightly had your the now. in the actually beverage is think food and that current food XX% tracking I increase menu I you've any in pricing, costs below mean what food And think that cost maybe XX.X% QX price beverage you're inflation On quarter. I lowest would and rate? is the with

Steven Benrubi

the sales a online little fully on color more more dining the quarter well little capacity. as XXX% a back indoor once give I'll mix Yes. by normalized is our California came geography in fourth XX.X% with that

the on in market, average pricing California different Texas Our is of a for than much instance, environment. because higher labor

business if just spend. better so of COGS higher P&Ls And here. going number, you California you were doing to look you're see restaurant at a It's see and labor overall, to a fact

to the did so our now as that sales. normal move and And that's have back as and for more of gotten us, more sales in COGS help of more California percent a

high current well fall move that's from back be that on shifts just the with again aware we're of quickly made. also to happen rates, the very cost. price impact We're terms helping single offset going food. month In how us I'm that there in of And can to month very that pleased we

have do you as we know. very Now a menu, diverse

our commodities XX% of top are Our combined total food cost. X around only

we us. going of a helps be diversification just move that the visibility and it that where are going macro to But and future food feel we're expectations significantly. comes down that. to more cost factor So food road able the which for things in give when or be around is maybe factors, some after can freight, situation to almost to like like have potentially the And labor granularity other all better

Operator

question Our line the Zackfia Blair. from next of with Sharon comes William

Matthew Curtis

I It's level a question Matt for margins. Sharon. Curtis on have on overall restaurant

level XXXX? If think how pre-pandemic, much about you you XX% now of restaurant had curious that And in you in where level can as you of XXXX. think gap you were you do versus I'm adjusted where margin look fiscal at restaurant are close I fiscal to margins,

Steven Benrubi

kind in see a on may But bit I'll had is a get don't to to the coming in things some learning had as, labor in was want indoor needs capacities What and while board our a a that with of very of maybe it's where little that XX.X% pandemic. significant feel environment to we half best of some very to and XX.X% not be still margins it to and in we we reiterate lot more mentioned, the for California we nature spite to any getting team why as constrained predict hold we newer made I what completely we or but reason the in on historical the as historical to opaque bit pre clouds experience very some little or makes we Putting positive level happen business recover at achieve. very confident to can't back our get there our restaurant food curves back move times QX see and about that we just us are and future sense the thoughts. we're a context, a labor the the specific of to was. And of June well members. that to progress first some the we're both But level, dates in fact think of degree, the quickly try with now, building right dining margin that pleased new to obviously to in terms we where of good now. on in efficiency when going, think we're cost point of and narrowing that

Benjamin Porten

prior was that] profit [add the X.X%. restaurant operating to margin for Just quarter the level

that increased we've driven date. really quarter so the tremendous XX.X% QX to by been a And sales we encouraged growth, revenue the in leveraging. we're saw by the And was very seeing that

Matthew Curtis

Okay. Understood.

Could is ways to you I mitigating helping guess, been and taken offerings else? labor offset or up, have through the anything optimization either you talk also belt pricing, of you've that. which on other the Following I understanding conveyer this may the inflation. just about commodity mean

Steven Benrubi

our a couple structures we leadership term a some COO leverage some none with as like couple other volumes, than additions -- for been came of of engaged supply of of Sean more role, with the months business and in bigger start have, board become opportunities We've ago, folks heavily chain we and we areas. talked how we the on around that into on where support our important more food. infrastructure and doing can that and I'll he's a costing the about made

going customer table-side area to training some customers to on we service another for Kura for service. efficiency elements have teams and put of ordering our support think to going members experience, other the then the can And focus the is at around it training payment that are customer and from drink allow initiatives help more our center in a where line really that table also us in enhance forward. perspective, team side our restaurant their and We the programs investment we

And We have there's been historically, mentioned a system think whole looking the how based just pointed and the same might about to much is more speak, the Japan examples. very a developed. of a that for upon with Kura on of as business. that we're years but going in to so not level had efficiently number toward of when experience deployed And things lot always low-hanging a in that's efficiencies, lot of fruit, things of continuously I improve efficiency robotics the been have you a so is brand this frankly, at driving this back-of-house time that are

Matthew Curtis

increase if G&A. your And break sounds it it fiscal dollar Okay. things of guidance for Got separate includes you seeing like I hoping perhaps and the wondering that investments then could growth core mean the was components and you could dollar next out things. G&A other ordering the technology in it. you're like payment I XXXX. year? on table-side G&A I was and from drink

Steven Benrubi

IT Officer, service believe of there. we almost a joined managed leadership that historically that speak a we have we if it the really put from Arlene, And Sean function, people. our few them to it's on is support People Chief the addition on that time of recently. COO, through to reached start Director brought to in-house. company with vast that our what you our comes of board set the When scale I'll things coming And we Yes. whereas coming organizations. also majority in build we third-party side together, the skill just -- all where IT, And happening the of as it own the it's pieces business, it does

some to COVID Recognizing becomes that recovery more were we're almost showing as in staff the members that 'XX restaurants. provide at with having contributive we've like us hired recruiting restaurant the dividends that also been help you that of already span on as us. for And people when paying director And those have There's a nearly recruiting. to so of some much plan. aggressive also, insurance for a a couldn't And that some have that And few our intention staffing costs in have on IT in the members bigger a there's and of and strong travel level support that's thing. then out there some business, And level in store we've X we couple to go getting on October tremendously for restaurants, wasn't that comp alongside people to opening the costs, working other making been as to frankly, additional team responsibility more on of those happened bigger during about the as when brought of And we're organization benefit sales, late and happening. signs under opening folks where of XXX% programs our we have made all like XX been staff a we fiscal investments recruiting growth sales in reopening just, that well. been a without positions are bring of have the area, things hired growth a of X when the along whole well concurrent happen. scale really support again, now of there. so-called it to some from able then of talking the about simply point well. and the restaurants we to through strong get California restaurants to additions and to brought store saw along costs, you need where of up with area. we're And teams where opening come in our then XX things put And D&O store June There got people opening team talking how because when increase the those that, people now area, now, team kinds we to the those where

you may when the different this the to size. people bring have on half -- can from what you have been was be hiring rates And company so current

those so So I in make -- lion's what's much our we of just those you sure getting elements if that of together put changing the comprises supporting smart. think pretty we're grow business ahead we G&A. share And that

Matthew Curtis

Okay.

guess I it would be... So

Steven Benrubi

final point... then And

Matthew Curtis

Sorry, go ahead.

Steven Benrubi

at period. us a for done you the what don't to these something mind, team with multiyear do that is If we've is really we serve look that can additions

be growing next a or in followed in several business. And more because by growth growth the so that can to things a modest ourselves on talked But the more we've handle should always here, there's years team G&A that an fiscal absolute we for the with positioned G&A certainly I've growth, while. nominal really additions be going basis 'XX in in like about a feel dollar

Operator

the of comes Capital with question Partners. George next line Our Kelly from ROTH

George Kelly

momentum successful again Congrats and you're all the on the seeing. quarter

the follow up to on Just question. prior

out bit future in couple your quite you the do are faster place, where you with in of now a that a this a this to look periods? restaurants -- infrastructure X to when and in infrastructure restaurant jump. now and do a this building year you that XX of if to you lease you're sort of place issue even years, G&A So with XX everything. a real team infrastructure, move at sort But I there's that with all have is timing like And look a in feel X know you're position constructing signing you the than

Hajime Uba

Okay. [Foreign Language]

Benjamin Porten

to in that They've bigger team, making really what's going lead that Steve are X are We investments wanted have the now as for mentioned, real terms are our to really investments grown serve we of going as fiscal for multiple members. pipeline, pipeline much coming the allow construction regards to In estate this additions just to mention and meaningful that to last over that to years. opening, had for to G&A given now -- restaurants the tremendously, make that an we're in we've like investments time XX made talent mentioned, that additional us both the year, And team. us years? have you've the we

Hajime Uba

Language] [Foreign

Benjamin Porten

growing item opening having and team's line open stores opening to now And be the teams, then our by opening able And falls under team also parallel. X in G&A. we'll

also us And something preceding it that was the the us for just in useful coming well for wasn't to is so that years. serve this year. something very It's going --

George Kelly

Okay.

your then on next new question store Okay. Great. openings. And again

XXX or And that this your changes stores XXX that of mean, contemplating any minutes there are times, could bigger? is, minutes at you're of see I question mean your stores. all? next wait obvious so to over seen, I store at of some on cause even With the sort stores? sometimes Does format new the size the success you you've be rethink other of of your I kind batch But

Hajime Uba

[Foreign Language]

Benjamin Porten

looking between flexible a what's relationship to we're format and opening, earning always So store to a new successful been given and one-to-one generally a going any ability. size it's new simple forward. its want with keep any not we But -- store particularly larger

Just small. has done an quite well, Lee, which is Fort example, as tremendously

Hajime Uba

[Foreign Language]

Benjamin Porten

be we're we're as best this that to what's always, really for specific market. going on So approaching --

with appropriate, strategy at location and compelling recent we larger several we'd example, that opening, Just were of development as Stonestown traffic. And on able draw that And an investment. holistically thinking be larger that a periodically for to with open was we've opening very always the We're we been return a rent, stores. opening committee. We we confident when store. are years. to looking were as the it's in a of terms the meet And ton

Hajime Uba

Language] [Foreign

Benjamin Porten

as X,XXX not never whatever huge having footprint advantage it by square or minimum simply ourselves of foot box preclude We set potentially our competitive doesn't space flexible thought a real always from a shape. excellent entering sort criteria. of we've a fit size set And because estate

high, that especially never particularly this we -- wait think meaningful comment the us have. wait of times whitespace wait do allowing our ourselves just earlier for elevated to reducing the given serve that so be market times times, reasons to in how want off and we circle we if to about And into is such opportunities, a back be payment in-fill wait inform to of And more from that's that are priority the much your tremendous high one cut the are times terms table-side us. And would the really strategy going We then priority. to guests. also very is

George Kelly

Okay.

then last me, a for Okay. And topic. question different

and You that are mentioned -- term of in beverage the table-side you were talking near about like and payment tech ordering enhancements that some more other so things. nature just

your you think mentioned longer As you term, or in of or I automation robotics sort prepared look remarks, something. kitchen new

other about now? pain X might you're X, more have out And you where from points of so investing impact, of now just I it, points call think was could you years places look technology, you if maybe, curious or if friction talk an

Hajime Uba

[Foreign Language]

Benjamin Porten

staff of one example that the dishwasher. -- that the technology over into pending places fully parent So helps directly the a be the from robot we're collects that on all and moves plates the It it's we bringing of from sort that ETL NSF the the planning them certification process. would dishwashing plates automate and

need to your if ever you're not do particularly is all really, to grab it's so limit does is the that not This need And just throughput. that you something about a employees think clean and again. able keep because important plates to up,

critical of extremely they limit And positions to position plates to dishwashers your throughput. an staff. clean that that I the they're And to for serve the need always sort harder one actually mentioned of are guests. exact continue You reason

or particularly we're about looking the ones closest table-side the touch that the to But excited that near one. rollout. full and panel at so drink the term, payment of ordering And are

Operator

have also we you a you, have end may end the well. reached of we of reached conference Therefore, session. And the your day. the the good question-and-answer disconnect Thank have as And and lines.

Kura Sushi USA (KRUS) 12 Nov 212021 Q4 Earnings call transcript