Kelli Valade: Thank you, Jake. Great to hear from you. I think we’re actually pretty confident. So we did a lot of testing to go back and look at reprising that versus staying on. We were on for quite a bit with the original Grand Slam and it performed well for us and it really hung in there for us. So we do, we do great when we talk about our slams. That’s the signature platform, obviously. So what you see in all day diner deals and what the research really pointed to for us, we went and revamped the commercial. We went and really amped up the variety play. So it’s six entrees. We lead with the everyday value slam. A great value, but we lead with that. But you’re also, we can also see in just a really short amount of time since this launched, we can see burger sales and incidences are up.
The things that are featured in that spot actually are performing pretty well. So we like the variety. We like that there are options for the guests. And it’s not just one single breakfast item, although we lead with breakfast because that’s the best. We have the best potential when we do that. So we’re encouraged and we’ve got great plans in the mix for the rest of the quarter and the back half of the year.
Jake Bartlett: Great. And just to confirm, this is you mentioned in the last call you were testing some various levels of value. This is what you were testing or there are other platforms that you’re currently still looking at?
Kelli Valade: We absolutely are still, there are other platforms we are still looking at. And again, this one given, we revised the commercial, given some new testing that we did, it surfaced to the top. So a good one now to lead into this quarter with, but we are not done. We have a few more tricks up our sleeve in terms of great everyday value offers that can be really compelling for us given the environment.
Jake Bartlett: Okay. And this next question might be one that I should already know the answer of. And so I apologize ahead of time. I wanted to make sure I understood the implications of the local co op matching and the $12 million increased spend that you talked about. Where does that money come from? Help me understand exactly who’s matching what and where. Is there any contribution from Denny’s itself that’s going out the door?
Robert Verostek: Yeah, Jake, that’s an excellent question. So the mechanics of that are this. So all of our restaurants, all of the Denny’s restaurants contribute 3% to our brand building fund. This co op then suggests if the franchisees spend an incremental half a percentage point within their market, we will take a half a point out of that brand building fund to match into that local co op, giving that co op approximately 1% of their sale to spend, leaving the remaining 2.5% in the brand building fund. So that’s the mechanics of how that works. So overall, again, the overall spend is lifted a half percent in this environment, shifting the national spend to from three to two and a half illustratively. And the local then goes from a half a point to a point.
Jake Bartlett: Got it. Great. And then the last question is just on California, there’s been a month now of the implementation of the Fast Recovery Act, and you mentioned that it’s not so far impacting your labor costs. So that does sound like the labor cost increase is still built into the guidance. But, you know, anything you’re seeing, you know, I think there was an idea that this could drive traffic to, you know, to family dining and full service. Any, any, any activity or any actions by consumers or changes in behaviors that you can share at this point?
Robert Verostek: Yeah, Jake. So this is Robert, again, with regard to that. Little early, frankly, to see changes in traffic patterns resulting from that, the potential of incremental funds going into the pockets of our consumers, those paychecks may just be getting into their pockets at this point. So consumer behavior as a result of increased income from increased wages is likely too early to see. But we were, as within our prepared remarks, we’re really at this point pretty, pretty bullish, at least in the near term, that management turnover and crude turnover has not taken a significant change in California. Again, watching it just as I described, the wages may be early. The impact of how that all evolves with regard to turnover or labor inflation, we’re still watching that very closely.
But early on, those two points have, have performed better than we are our guidance, as you point out, does contemplate increased labor inflation. That may be something that we could revisit later in the year. But right now, just a little cautious to do so.
Jake Bartlett: Great. I appreciate it. Thank you.
Operator: Our next question comes from Todd Brooks with the Benchmark Company. Please proceed with your question.
Todd Brooks: Hey, thanks for taking my question. I want to drill in on Keke’s a little bit first. Kelly, just, it sounds like the Hendersonville opening has gone better than you expected. But what kind of learnings out of the response? Maybe potential in the non-Florida markets. I know it’s one data point, but any read through or excitement around this opening that either changes the growth trajectory going forward or if you could possibly update us, I know there were a lot of franchisees that were waiting to see that unit and the performance outside of Florida. Is there any way to give us an update on where the franchisee pipeline lasts? I think the last update was 100 plus.
