BurgerFi International, Inc. (NASDAQ:BFI) Q3 2022 Earnings Call Transcript

Mike Rabinovitch : Yes. Give me just one second here. Versus ’19 BurgerFi’s negative same store sales is very similar to the trend that we have versus ’21. Because ’21 — because of that phenomenon we were enjoying with the consumers coming to Florida. BurgerFi was actually flat 2019 this time last year. So our decline versus ’21 at BurgerFi on the same store sales is very similar to 2019. On an Anthony’s basis, Anthony’s had not recovered in 2021. And we’re seeing that continual recovery through this year. The month of October is the high point for Anthony’s versus 2019 in that we returned positive. But we did enjoy a small benefit of calendar shift with Halloween, falling into this fiscal October versus prior but we don’t think that that was worth more than a point. So even without that. We’re very pleased with Anthony’s performance in the month of October.

Peter Saleh : Great, very helpful. And then just maybe a couple more. Just can you talk a little bit about the Anthony’s franchising deals? Nice to see that announcement. You indicated you’ll be adding the menu to the BurgerFi location? Just trying to understand how that’s going to look, what is the investment required there on the franchisees par? And if you could just give us a little bit of sense on the royalty rate marketing contribution? Any sort of details around that initial agreement?

Mike Rabinovitch : Okay, sure. First, let me frame for you and the other listeners the strategy. When we acquired Anthony’s we acquired it with a lens to grow through franchising. Anthony’s in order to begin franchising, we needed to do several administrative things. One of them was create and file a Franchise Disclosure Document, that document was finalized late this summer in June-July. We also had to create training materials and operations manuals that are — and able to be deployed to any existing or new franchisee that would want to launch an Anthony’s. And as we mentioned earlier, we were working on and perfecting a smaller format with an easier to use of it. And so, all those pieces came together. Now we have a great existing franchise network at BurgerFi. And so one of our longstanding franchisees stepped up and as you notice is the first and in a lead Ian remark on how that’s being deployed in the location. Go ahead, Ian.

Ian Baines : Yes, yes. So it is a three restaurants deal is via Chad . The first one though, is a little different in that the franchisee is taking one of his existing BurgerFi locations situated in Kissimmee. This is a good performing location for BurgerFi franchise, and adding some additional space because it has the capabilities to do that, not a significant amount of space, about 1,000 square feet. And putting in, the guest and coal-fired item and everything else that is needed to produce the Anthony’s menu. But the way that one is going to work is primarily for pick up and take out. That is how we’re going to present to the guests that come in there. However, those guests that come in and choose to then take that piece from one of the tables, they’re going to be able to do that