Q4 2020 Dave & Buster's Entertainment Inc Earnings Call
Yeah of clean holes of the Dave and Buster's Entertainment incorporated fourth quarter 2000, and 'twenty earnings results Conference call. At this time, we are assembling today's audience and plan to be the way shortly and we appreciate your patience and please remain on the line.
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Yes.
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Good afternoon, everyone and welcome to the Dave and Buster's Entertainment incorporated fourth.
For 2000, and 'twenty earnings results Conference call today's call is being hosted by Brian Jenkins Chief Executive Officer. He will be joined on the call by Scott Bowman, Chief Financial Officer, and Margo Manning Chief operating officer I to remind everyone that this call is being recorded and will be available for replay beginning later today.
Now I'd like to turn the conference over to Scott Bowman.
Quarterly remarks.
Thank you James and thank you for all of you for joining US today before we begin our discussion of the company's results I'd like to call your attention to the fact that and our remarks and responses to questions certain items may be discussed which are not entirely based on historical fact.
Many of these items should be considered forward looking statements.
And that's related to future events within the meaning of the private Securities Litigation Reform Act of 1095.
All such forward looking statements are subject to risks and uncertainties, which could cause actual results to differ some of those anticipated and.
Information on the various risk factors and uncertainties have been published in our filings with the SEC, which are available on our website.
And at Www, Dave and Buster's Dot com under the Investor Relations section and.
In addition, our remarks today will include references to EBITDA and adjusted EBITDA and store operating income before depreciation and amortization, which are financial measures that are not defined under generally accepted accounting principles investors should review the.
A reconciliation of these non-GAAP measures to the comparable GAAP results contained in our earnings announcements released this afternoon.
Also available on our website and I'll turn the call over to Brian.
Well. Thank you Scott good afternoon, everyone and thank you for joining our call today.
As we close out.
And a challenging 2020 fiscal year.
Pleased to report today that our business is on a clear path to recover our stores are reopening comp sales trends are improving our financial performance is rebounding and our liquidity remains strong.
As I reflect back on the agility.
At the resilience and resolve and our team has demonstrated over the past year I am extremely proud of what they have accomplished Dave.
Dave and Buster's as a stronger company today because of the outstanding effort of our team and for that I am grateful.
Following a temporary setback.
<unk> glad of Covid resurgence of over the holidays, our business recovery remained solid momentum we concluded our fiscal year and January with 107 reopened stores are fully operational we opened comp stores generate at January sales at 67% of 2019 levels representing our.
Congress Covid impacted month and fiscal 2020 and.
And January 85 stores, representing approximately 80% of our reopened stores achieved positive store level EBITDA, enabling us to post our first month of positive enterprise level EBITDA since the shutdown of our entire store.
Store base at just over one year ago.
Our operating and corporate teams continue to execute our lean operating model as our stores rebuild of their business.
We and our revenues returned to 2019 levels, we estimate the operational improvements we've implemented will drive approximately 200 basis points.
And of incremental EBITDA margin over the rate we achieved in 2019, excluding the impact of cost pressures that may emerge over time.
With improving COVID-19 trends higher seasonal sales and stimulus related demand. Our recovery has continued during the first eight weeks of fiscal 2020.
Sales at our fully operational comp stores of achieved 74% of 2019 levels.
Total sales reached approximately $150 million and we posted our second consecutive months of positive and or enterprise level EBIT in February and the first full month of fiscal 2020.
One of them.
Also encouraging the recent reopening of limited capacity dining and arcade operations at our 11, New York stores and limited capacity dining at seven of our 16, California stores brings us very close to the complete reopening of our 141 store base.
20% behind these positive developments give us confidence that we will achieve enterprise level EBIT of profitability for the first quarter of fiscal year 2021, a significant achievement for our team and our company.
Our accelerating recovery illustrates the resilience of the Dave and Buster's.
The brand and the important role that good clean fun place and the lives of our guests and.
It also validates the changes we made to our business model that of not only enabled us to navigate the challenges of the past year.
But to emerge with a stronger more competitive and more profitable business.
Buster Haemus prepared they are excited and fully engaged and we are optimistic about what the future holds and 2021 and beyond.
At this time I'm going to ask our CFO, Scott Bowman to cover the results of the fourth quarter and to share some insights on our expectations for the first quarter after that.
Our CFO Mark.
Martin of Manning will join me to provide and update on our 2021 strategic plan and Scott.
Thanks, Brian I'll first spend some time summarizing our fourth quarter performance and our liquidity position and then provide some insights and the first quarter and fiscal 2020 one.
For the fourth quarter total revenues of $117 million reflected a 7%.
Decline and comparable store sales.
We ended the year with 107 opened stores, including three new stores opened during the quarter.
By month overall comparable store sales of negative, 69% and November negative, 78% in December and negative 59% and January.
January performance improvement.
Mainly due to the benefit from the Covid stimulus and the reopening of 14 comparable stores compared with December.
Turning to the balance of the P&L gross margin declined 11 basis points to 82, 7% and the quarter, primarily due to inventory write offs related to closed stores, which was substantially offset by a higher mix of.
Amusement sales.
Operating and payroll and benefits expense was 27, 6% of sales compared to 23, 9% last year.
This was mainly due to deleverage and management labor due to lower sales and our decision to recall of core group of managers, and New York and California to help ensure effective restart capabilities.
Other store operating expense was 63% of sales compared to 31, 2% last year.
Most of this deleverage was due to occupancy costs and lower sales, along with deleverage and areas such as utilities and repair and maintenance expense throughout the quarter. We continued to ramp up return and maintenance expense to prepare of stores for reopening.
And the expectation of higher sales across the chain.
G&A expense of $11 6 billion decreased 43% from prior year, primarily due to savings, we really at the staffing reductions as well as lower consulting and expense.
Quarter EBITDA loss was $20 1 million that said we were pleased to achieve.
Other enterprise level, EBITDA and January driven by improving sales trends and additional store we opened two.
Turning to the balance sheet, we ended the quarter with 12 million and cash and $280 million of availability under our revolving credit facility net of a 150 million minimum liquidity covenant and 10 million.
And letters of credit.
Total long term debt stood at $610 million at the end of the quarter, consisting of $550 million and senior secured notes and 60 million outstanding and our revolver.
Additionally, at the end of the quarter, we had approximately 5 million of deferred vendor payable, which compares with approximately seven.
And $3 million at the end of the third quarter.
And we plan to repay most of those deferred balance by the end of the second quarter of fiscal 2021.
Excluding revolver draws and repayments cash burn rate averaged $2 3 million per week during the fourth quarter.
Deferred rent totaled approximately $52 million at the end of the fourth quarter.
Order compared with approximately $48 million at the end of the third quarter.
And as a result of our continued negotiations with our landlords. We have further extended rent deferrals, resulting in an expected payback of approximately $20 million and fiscal 2021 'twenty 5 million in fiscal 'twenty, and 'twenty, two and $7 million thereafter.
In addition, we expect to receive a tax refund of approximately $11 million.
Either late in the first quarter or early in the second quarter of 2021, resulting from cares Act legislation.
We also expect to receive a tax refund of approximately $50 million late in the fourth quarter or early in the first quarter of 'twenty.
2022 related to the carry back of fiscal 2020 losses.
Turning to capital spending we completed construction and opened three new stores and the fourth quarter.
Overall, we have 64 million and capital additions for 'twenty, and 'twenty and 51 million net of tenant allowances.
In summary.
Our operating results for the fourth quarter reflected encouraging sales recovery trends at reopened stores and we were very pleased to achieve enterprise level EBITDA.
The ability for the first month of January.
Now turning to our outlook for fiscal 2021 will not be providing detailed full year guidance at this time.
The continued uncertain.
Certainly and the operating environment, However, I would like to offer some insights for the first quarter of fiscal 2021.
So the first eight weeks of the first quarter, we've seen continued improvement and sales trends with total revenue of approximately $150 million and comp sales down <unk> 47 per cent compared to 2019.
And the housekeeping note, we will continue to report comp sales for 2021 against 2019 results and we believe this is a more meaningful comparison versus the COVID-19 effects at 2020 results.
For the first quarter, we expect total revenues to be and a range of 210 million to $220 million, which assumes at the month of April.
And April will continue to be a seasonally low volume month as it has been historically.
Importantly, as Brian noted earlier, we're also experiencing meaningful improvement and profitability and expect to achieve enterprise level EBIT EBITDA profitability for the full quarter, reflecting another significant milestone and a recovery.
Regarding.
And liquidity, we had approximately 309 million of available liquidity under our revolving credit agreement as of the end of the first eight weeks of the first quarter and.
Net of $850 million minimum liquidity covenant and $10 million and letters of credit.
From a capex perspective, we will continue to invest and the business in fiscal.
2021 to further strengthen our brand and concentrating on our strategic initiatives that Brian and Margo will discuss net as well of the limited number of new store openings.
We plan on being conservative and new store openings for the near term while of business continues to recover but we will retain some flexibility to be able to begin construction.
An additional stores should the business improve more quickly than anticipated.
Overall, we currently have 10, new store commitments and our suite of new store pipeline of which we plan to opened four and fiscal 2021 along with the relocation of one additional store.
We opened the first of all of that new stores in early February.
In total we plan to invest $65 million to $70 million and Capex in fiscal 2021 net of tenant allowances, while maintaining adequate liquidity and need to meet our operating needs and to position us to lower our debt profile overtime.
Finally, I'd like to provide some insight on your operational improvements.
This model initiatives, which we estimate will drive approximately 200 basis points of EBITDA margin improvement as we returned to 2019 revenue level.
First we expect to see leverage from hourly labor as we continue to invest and technology to improve efficiency.
Dominion named Blurs of this deployment will be.
Tablets for servers mobile order and biogas and more effective scheduling of our staff based on anticipated day part of traffic.
We also expect to realize leverage from management labor as we adjust scheduling for peak and off peak hours and utilize key hourly team members to provide coverage and certain situations.
Our G&A.
And as we have scaled down the organization to be more nimble and will benefit from process improvements identified during the past year.
From a marketing standpoint, we're planning on fewer more strategically placed promos targeting and US then into key windows during the year.
And finally, we will achieve savings from other P&L line items.
From opportunities realized toward zero based budgeting approach and as we continue to cautiously at back expenses at a slower rate than our sales recovery.
While this model does not reflect the impact of cost inflation or other cost pressures that may emerge over time. We believe these initiatives will drive approximately $30 million of EBITDA and improvements.
<unk> as we return for 2019 sales levels with that I'll turn it back over to Brian and Margo to discuss our strategic initiatives.
Thanks Scott.
Or at very encouraged by the first quarter momentum of that Scott just described to you and I went on a cough and Italy implementing our 2020.
And one strategic plan built around four key pillars that really define what Dave and Buster's brand.
First is to offer novel food and drink to bring people together.
The second is to offer the latest entertainment to enjoyed at desert Sir.
And that's to deliver and integrated guest experience.
With an aligned team and the fourth is to drive deeper guest engagement.
Our CLO Margo shared urban details of the first and third pillars starting of last quarter's call. She will bring you up to date on our more recent progress and then I'll follow up with an update on the second and the fourth pillars Barbara. Thank you.
Brian I appreciate the opportunity and give an update on the progress we have made on our king unless it at first however, I want to recognize our operating team and are dedicated to bringing our store at that quickly and profit definitely that's definitely and relaunch and these stores take great effort. They continue to deliver strong performance and I'm incredibly proud of 15.
King.
As Brian shared I can't understand and for many and refining and number of initiatives under each of our strategic pillars of that Brian just discussed and Joseph first pillar offer and novel food and drink to bring people together.
And it works out to establish a stronger differentiated food identity predicate of investors.
Exploring bricks of all kitchen concepts optimizing back of the health of operations and enhancing our bond of at <unk>.
Food.
And inspired at American kitchen, and integrated and enhanced flavor of quality and great hand of cross at condense number of menu items that we have price to maintain our historic gross margin.
Interest and most extensive update to our state of offering and more than 10 years and it allows our guests to explore new flavors, while offering a balanced selection S and langer guests at all.
Our stores have just completed the second phase of our menu initiatives, taking our menu of kind of 17 of items to 'twenty King.
Completion of at the third phase I of our menu by late May and well finance that till our final target at 28 items.
This represents 33 per cent fewer items and then more on our pre cut of that venue.
We expect the army menu and to drive and improved guest experience and increase of food attach that right all aimed.
And towards increasing and food and beverage sales.
End of April we'll have completed at the rollout of at high speed ovens at all stores, reducing cook times by more than 40% on approximately one third of our menu. Additionally.
Additionally, we anticipate having the embrace of our kitchen management system implemented in all stores.
And I can which will enable a more seamless flow of food and health bridges, and overall kits and ticket times.
Combined our new menu high speed ovens and at kitchen management system will enable our teams to deliver distance to I guess hot and fast.
To complement these operational and process our.
At Department has designed a comprehensive internal and external marketing strategy to tell our guests at about the new menu and to drive trial throughout our buildings from the dining room to our Wow walls and video walls Kiran Midway guests will see Mouthwatering pictures of Austin dishes from our new menu.
Guests will also experience and new digital menu that is visually appealing and easy for them to navigate.
Our external advertising plan is equally compelling and for the first time allocates a majority of our spend towards digital channels to communicate with existing and with first time guests and.
I'm, particularly excited to see us partner with social Influencers to help promote the new menu and of fun and relevant way.
To further expand our reach and to leverage our kitchen capabilities. We have tested two ghost kitchen concept that highlights specific food categories from our new menu.
We have focused on concepts that can be rolled out nationally or regionally. Our most recent go pitch and test is a concept of called wings out at offers and narrow menu of wings and tenders with a variety of rugs and interesting sources to select from.
We are excited about ghost kitchens at the new revenues.
Revenue streams.
And we consider their potential impact, particularly in the context of our historically category, leading 10 million end uses and a smaller store count than many of our competitors. We do understand that there will be a relatively small contributor to total sales.
Our ghost kitchens.
Combined with our core of D. N V to go offerings are currently generating approximately 50000 per store.
And we are just beginning this journey.
Next steps evaluating additional ghost kitchen concept and third party providers beyond door Dash and Uber week, Uber eats as well.
And at working to optimize our promotional strategy to fully capture the revenue potential for these concepts.
The third of our four strategic pillars, delivering and integrated guest experience with and aligned team includes evolving our service model to give guests more control over their in store experience.
Growing our culture of social fun by freeing up our team members to engage more frequently to enhance the guest experience and opening new stores with the new service model capabilities from the outset.
This involves deploying a combination of a new service model tablets and of mobile web platform.
For them to enable a completely contactless order pay and experience.
And our test stores, we've seen and encouraging improvement and check terms. We have also been able to expand the size of server sections and reduce our staffing levels to be more efficient.
We have implemented this new model and our reopened and New York stores.
And are proceeding with the stacker at deployment plans across the brand targeting full deployment by late summer.
Lastly, as Scott mentioned, we have analyzed our lean operating model and identified where we can capture operating cost leverage and we're confident that our team will continue to apply the learnings from this past.
To be and even better operating team in 2020 one.
In summary, let me declare the overarching objective of our food and service model of strategic initiatives.
Efficiently drive increased sales and improve the guest experience and enhance our long term profit.
At year now.
Now I'm going to turn the call back to Brian to talk about the two remaining strategic pillars offering the latest entertainment to enjoy together and deepening guest engagement Brian.
Thank you Margo and thank you for your leadership and your team's incredible commitment and dedication.
Stability.
The two strategic pillars that round out our 2021 strategic plan and are also simple sort of enhancing the guest experience.
At first because offer and the latest entertainment to enjoy together.
Over the past 12 months, our entertainment teams and it's been working on several.
And this company to support this pillars, starting with six new games and that will launch and exclusively of Dave and Buster's of summer.
This exciting lineup of new games includes titles such as Minecraft Dungeons arcade for player cooperative game based on the best selling and video game of all time.
Patch of hero.
So at which brings the excitement of of competitor that's thrown Dave and Buster's guests and of fun food that's paid arcade format.
And then there's hungry hungry shippers, which brings a lifestyle and version of the classic Board game for up to four players.
And we're at a brand new VR attractions.
<unk> proprietary platform at the launch of popcorn and Dr. RK just prior to the release of the and you talked about moving to summer.
We also continue to explore of sports betting and partnership to bring sports Wagering and daily fantasy sports to Dnb, where allowed by law.
We believe this could.
Uh Huh mean accelerator to our appeal and sportswear and watching destination and better leverage our watch assets.
We expect to bring down of negotiations to conclusion over the next several months.
Finally, we are committed to broadening our entertainment offerings by building.
Our programming capabilities, we are investing and a dedicated and entertainment programming function.
Focus on creating compelling content based events to drive broader reach and increased visit frequency.
Before and the final pillar of our 2021 plans to drive deeper guest engagement to fuel.
Fuel our sales with total and growth.
And we look to drive seasonal traffic by focusing our marketing and two key media windows.
A lot of new product news.
Limited time offers with a message of connects with our guests an emotional level.
Following a year of limited media spend.
We have two campaigns planned for the remainder of 2020 one the first campaign this summer.
Will feature a new menu items, new limited time joints and other exciting lineup of new games and.
And second the campaign is still under development will target. The November December time frame around the holidays.
And.
Types of changes and the media landscape that were accelerated during 2020. Our plan also includes modernizing our media mix to reach debt, where and how they consume content. This.
And this includes shifting a meaningful portion of our media spend from traditional cable to a more flexible mix that leverages.
Most of the biggest T D day.
Audio and social channels.
This new digital approach provides us with the ability of flex spending up or down market by market, depending on near real time results.
And finally, even during Covid, our marketing and our teams were pushing forward.
<unk> complete the implementation of a new marketing technology stack.
These investments now position us to deliver more personalized and targeted marketing messages to a wider variety of digital channels as we return to full operation.
Before I close I wanted to take a moment.
So kind of thank retiring board chair, Steve King.
His vision and leadership over the past 15 years of Dave and Buster's.
It has been and honor working alongside speeds over the years. He has been of great mentor and friend to me and to many other members of the D&B family.
His influence will be long lasting.
And he will be greatly missed.
So I Wanna current congratulate Steve and his family and his well deserved retirement.
Steve will serve out the remainder of his term at EM.
And and this June with our annual meeting.
At the same time I want to congratulate Kevin Sheehan.
And it's been.
Last name at the class of New chair of the board as a member of the board over the past 10 years, Kevin has been instrumental and shaping our success and I look forward to just continued guns and he.
He will be working closely with skis to execute and move smoothed transition between now and of junior annual meeting.
The lack of close today by reiterating how encouraged we are by the momentum we've seen during these early months of 2021.
And we've achieved enterprise level EBIT of profitability for two consecutive months and January and February February and believe we will do so for the first quarter of 2021 of significant milestone.
All of stone and a recovery.
We are laser focused on our strategic plan.
And the execution of enhanced business model with the potential to generate approximately $30 million of incremental EBITDA and.
Revenues recover to 2019 levels.
We are optimistic that these efforts.
Along with the waning Covid challenges will drive the Dnb brand to new heights of over time.
And I am extremely proud of every member of the D&B team for their tenacity, and they're creating productivity that they have displayed over the past year through an unprecedented challenge.
We are moving.
Board together confidently and excited to reopen the remainder of our stores and to thrive once again as a leader and the combined dining and entertainment space.
Now we'd like to open the call to your questions change you can open it up.
Thank you if you would like to ask a question. Please signal by pressing star.
Moving Brian on your telephone keypad, if you're using a speaker phone. Please make sure. Your mute function is turned off to Larry and I would treat your equipment.
And that's what you limit yourself to one question and one follow up initially and you may re prompt for additional questions. If time permits again press star one to ask a question.
Okay.
And we'll take our first question of day from Jake Bartlett with true of Securities.
Great. Thanks for taking the question and congrats on the improvement in the results of your exciting number of getting beyond this.
Brian Scott My first question and sits on the trajectory of.
Sales and the improvement.
You said January.
He was down 59% versus 19, and 47 per cent and the first eight weeks, but how did those eight weeks look and it hasn't been a continual or sharp improvement.
You know a month to months of week to week and what is the trajectory of the business.
Jay kind of be doing well.
So the question.
Well first of all we're super pleased with the.
The recovery and we've seen here and.
Got into the month of January.
November and December were sort of tough months for us with the resurgence but.
And a lot of volatility there and.
But since then and we've seen at.
And I think a very strong rebound really and January as I mentioned, we hit a high watermark in terms of our comp sales of index at 67% at our.
We opened fully operational stores.
And that was really the as I said on my prepared remarks of the best month, we've seen in 2020.
We do think that's of stimulus.
Economic stimulus at hit really in January of or kind of for us about a three at four week period was impactful and you probably heard of that.
Some others.
But we're really at first about how we've kicked off the new year.
Through the first eight weeks.
Achieved a 74 per.
Per cent index of 2019 comp sales were down 47% again now new high for us and those numbers have been a bit higher in March.
We think that you know we've seen some bolstered demand around the neck of the second wave of economic stimulus.
Sparkling demand of minute.
You know the trends of Covid and continue to be better.
This level of off here and the last week or so and I think we're seeing a little bit of pent up demand.
And March is a higher seasonal sales period for us and we do have some spring breaks that have shifted a little bit into March.
At the March has done a bit better than and then we saw and and them.
February.
And I'll just end on it that much at all.
Just one quick comment Jay you know.
If you look at weeks and the last couple of weeks. It was good time and here with the stimulus checks and you know coming out and starting in weeks and then.
And some continuing and week eight.
And we had you know a fair amount of spring break and activity and in those two weeks as well and so that just seem to amplify that and some of it was a good time and from that standpoint.
No I think one of the real.
And the interesting chart you guys put out was I think it was in October but at least.
And the trajectory and various kind.
And of stores.
And your current states and how long they've been opened four can you give us an update on how for instance, your stores are performing and states like Florida, or maybe the south east and at the time, they have been pretty close or at flat to 19, what is the state of the sales and in those markets now.
Another another great question you got of a first of all of you know, we're seeing pretty broad strength right now.
First day weeks.
It's a bit stronger and the southern states South East in particular of Florida, and if you really kind of dive into it is performing really well for us a little less strength and some of the northern states.
And some of the upper Midwest stores, I think at some of the pandemic restrictions and or lack thereof, and some cases are playing a bit of a factor and that.
We're seeing.
And when I when I mentioned that we were at 74% of an overall burn.
And the comps at four outlet stores.
Courthouse at 91%, so it's pretty broad our second core cost of around 78% and our lowest person a bottom quartile is running at about 47%. So.
We're pretty encouraged about where we sit right now we just opened up our New York stores here and why.
And the bright with.
And the spring break week up in the northeast.
And we're pleased with what we're seeing here early on it's obviously early days, but.
We're very encouraged with outlook of what we're saying in terms of.
Performance across the chain right now.
I appreciate it.
You bet.
Okay.
Next we'll hear from Jeff Farmer with Gordon Haskett.
Great. Thanks, and good afternoon, I know you guys are reluctant to provide too much detailed guidance on 2021, but I did want to drill down a little bit on G&A. It looks like your G&A dollars were down somewhere around 30% and 2000 and 'twenty versus 2021 and so from a big pictures.
Perspective, how should we be thinking about G&A in 2020 one for the company.
Yeah. It's a good question side and I think as you think about G&A, we have made some.
Pretty significant reductions in 'twenty, and 'twenty with with Covid and so I think the way to think about it going forward.
Forward is.
You know we will add back soon.
And G&A, but we'll be very prudent and doing so for.
For example, and you're right as we talk about you know new programming initiatives that we want to do and you know some of the things to support and new initiatives for technology and so forth.
One of them.
Very prudently and you know some sort of head count to support those initiatives.
But we still want to retain you know most of you know the savings that we achieved and in 2020 and so I.
I think the overriding theme there is that we'll be very careful as we at expense you know back to G&A.
From a head count standpoint, but also from other areas like consulting.
So we plan on spending you know less consulting this year and especially then we did you know back in 2019, because we really have you know that the plane in front of US right now and we have the initiatives.
We have you know the plant and move forward and so we'll need a little bit less of the consulting expenses here in the near term it's more about executing the plan that we have in front of us.
And just as a quick follow up on that and I did want to ask just one more quick question, but incentive comp stock based comp of anything from a true of perspective.
That could potentially happen in 2021 that we need to be aware of for G&A.
Yeah.
And stock based comp you and just depending on results of always you know and can vary you know with resolved and so.
Yeah, I think that and it has the opportunity to be a little bit higher.
And so that you know it goes you know kind of hand in hand and without performance.
Okay, and then final question and I Might've missed this I apologize for that but in terms of at $210 million to $220 million revenue guidance I wasn't quite sure what that implied are factored in terms of same store sales level versus the 2019 level for the quarter.
And and the number of stores that you would expect that to have opened on average for the quarter. So those are two big drivers of all of that revenue number I'm. Just curious if you can provide a little more detail.
Sure I think the way to think about that as you know we'll open.
Just a few more stores, we're getting close to the end on on store openings.
Opening so.
B of a dramatic difference there and.
And you think about even at the remainder of the corner and really there's two main things that you need to think about number one April is a much lower sales volume month, historically than either February or March just to give you a little perspective.
And you know March and in 2019 was the highest volume months of from an average weekly sales standpoint and.
And then February was the third highest and as you look at April it's towards the bottom in terms of average weekly sales historically and so a lot of it is just the seasonality impact.
And then.
And then the other factor that I would consider what is the effect of stimulus and so we mentioned that stimulus had a pretty large effect you know, especially in the last couple of weeks big stuff and a at all.
They'll still have some favorability probably in the next couple of weeks and but it won't be to the extent that we saw and in the first couple.
So those will be the key drivers as you kind of think about the revenue.
For the rest of the quarter.
Joseph just to just one of you.
You asked about what does that assume about stores.
Obviously.
The big base of stores that we have left and right now our cash.
Before and yet.
Are we.
We've got as we sit here today, we've got a 130 stores of our 141 that are opened.
And this was obviously up from where we were at the end of the fiscal year goes around and one of seven.
Nine of at 130 or restricted when our favorites.
Restricted and this expense I'm, saying and restricted from our Kpis and California with a couple of other stores rather than in California, We can't operate arcade, New Orleans and and Alpha.
Half of our perfect. So we've got about 121 stores out of 141 are fully operational today.
We expect that to me.
238, total stores and next week, so another eight other than that.
And I'll come online and those are.
And primarily California stores.
And we are not projecting to have that you know in California opened.
Fully operational with arc.
Move to use and the quarter and as you might expect at that that makes it really hard to generate for us significant revenues.
Alright, that's very helpful. I appreciate it thank you very much.
Mhm.
Next we'll hear from Andy Barish with Jefferies.
Hey, guys hope you're doing well.
I wanted to.
Kind of dive into at sort of the marketing side of things.
And I think on previous calls you and you highlighted.
Sort of at summer was going to be.
No more brand relaunch related is there a shift going on out of kind of.
Focus more on.
And the specific new food and and and game offerings.
And I.
Good question, Andy I, not really of shift I think.
We have along with our new creative agency of real.
<unk> been working at.
Non creative that will.
Really bring our brand of life and the eyes of our guests and interest and create of emotional connection with the grasp what the guests and I think we're gonna be able to do that by actually featuring some of our great new games and some of our new food and items. So you know we were.
As I said last time on the last call we plan to try to get out big here, we've done the other.
Tivoli silent for 12 months.
And we.
We feel like summaries of the right time to strike pretty hard and we're gonna have 22, new food items, where you're going to have six new games.
One of them and.
And bigger sense, we've also had to spend a whole lot on games and the last 12 months. So we have some great content of course, we're going to want to use that and are created and so.
We will be featuring some of that.
Not going to be particularly.
And Scott mentioned this.
And we found that we're creating quite a bit of of land and.
And and recovery without discounting and so.
And it's not really our intent to at discount as heavily and as frequently as we have and in the past.
And I was going to say, we wont do that at some but we're gonna be talking about.
Of our brand.
A larger voice you know starting in and around June and it will have a as a part of that content and that message and features some of the new game and some of the food and so we're really excited about well you know what what we Havent store graphics, we hit this June window like May June.
And then and <unk>.
Let me follow up with them.
I appreciate the and <unk>.
Drivers behind me at 200 basis points of EBIT and EBITDA margin.
You know associated with.
The revenue recovery.
Is there.
And expectation that you know is starting to get built in that 'twenty two can be sort of a full revenue recovery year to look at you know look close to 2019 or.
How are you guys kind of thinking about the you know the the ramp obviously given a lot.
Of potential unknowns out there.
Yeah, I guess I'll answer it. This way you know were in some ways taken and there's a little bit quarter by quarter.
And we're where we're giving you of what we think we're going to see this quarter and were reluctant actually to.
And to guide full year sales number one of them and stuff.
And don't forget the stores opened.
We're extremely optimistic about the recovery.
But you know I think it really.
Difficult and it to predict when we achieved in 2019 levels.
Yeah, we're fighting the battle of quarter by quarter, and we've got plans that I think are going to set us up really.
2021.
We're not planning to get back to 2019 run rate and this year.
And.
Could happen, but we're not we're not we're not we're not projecting that right now.
So I'm not looking to protect 2020 two either.
Well and fair enough. Thanks, guys.
Okay.
Well now hear from Andrew <unk> with BMO.
Great. Thanks, good afternoon, everyone.
Obviously, the amusement side of the business has been has been quite strong relative to the F&B business here recently, but.
But that youre going to be working on on F&B. It sounds like going forward. So I guess with respect to how you expect at exit the pandemic kind of longer term do you think that the mix of of the business will look different than it did pre pandemic and have you contemplated any of that in the EBITDA margin target that you'd get them.
There's no Oh I'll answer the first part of that and flip it over to.
And as Scott, but in terms of the mix.
And we feel like the.
At the mix, we're seeing which is August was shifted even further into amusement.
As you know.
Likely to continue over the near term if you.
Brian we know people our guests.
Choose us and the primary driver for that visit to the Dave and Buster's as our game so.
And I don't think it's too surprising that we're seeing a bit of a mix shift here.
And if people want to get back out of their life and and look for and entertain.
Think about it or experience.
I think we're going to see that that mix.
Being more heavily weighted for some period of time.
That doesn't mean that you know what the incredible efforts by our Carl and Brian Coleman.
And working so hard on our our menu isn't.
Entertainment some dividends over time, but I think near term, we're gonna see at pretty pretty significant and consistent mix shift end of engagements.
And for future here.
And as you think about the 200 basis points of improvement at you know that we talked about I did not include.
And he favorability from that and that estimate.
Isn't going to pay and you know the thinking behind that is as you know we will likely see other cost pressures along the way or inflation and you know some of that could help offset that but I did not and that that's one of the main reasons I didn't include it and the 200 basis points.
And okay. So that's helpful and then my other question.
It is going to be around the competitive environment and and if you of any updates there I know, it's kind of difficult to ascertain and broadly.
And what's been going on with this with closures and things like that but just any kind of of the internal until you've been able to gather would be helpful. Thank you.
And another good question I don't know if there's.
And it's really changed materially since we spoke in December.
Clearly.
We pre COVID-19, we've seen a lot of competitors.
Massive competitive of headwind of a lot of new names and accelerating store growth across that universe.
But you know as we sit here today and.
I.
And if anything a lot of our competitors clearly have to shift their attention.
We have to the core business and managing through whatever liquidity pressures they have.
And and the pace of store closures, and some cases and and certainly softer demand that we're seeing and and they are as well and I'm sure.
So it's.
I think mixed bag that.
You can go off of the website and see that our major competitors calls and of that there are essentially fully opened right now how they're performing not sure.
And they're not particularly me and it has a pretty diverse product offering and that requires you know.
Is it more heavy.
A bit of of intensive profile to it.
And but I think what we're going to see is a bit of a lull here.
And as people get their core business back on at speed.
And you know that.
We can go out to a website and see who's got coming soon but you know how quickly those stores actually come back.
Back up and actually of Bill I think remains to be seen of best here.
And what we're gonna do is concentrate on what we do best and that's fine and our stores getting them back up and I think we're doing it.
And incredible job right now we have.
A lot of liquidity, we have demonstrated and my view of it.
Clear path to profitability.
At that point.
We have and extremely attractive financial model pre COVID-19 and of my view much more so that and competitive set so I feel really confident about our ability to compete and we have a great team.
And we are prepared for this.
Post Covid world and whenever it happens, but we feel really good about where it is Brian stance.
Great and thanks for the color and congrats on the progress of interesting.
Thank you.
Sharon Zackfia with William Blair.
Blair has our next question.
Hi, Good afternoon, I guess, Brian and I wanted to share them up on a competitive play.
Wanted to follow up on the competitive question. Because you are obviously going to see a lot of fallout and the space and you'll be at survivor, I mean, that's clear.
I guess at instead of kind of taking these.
These savings and flowing them through at the bottom line of your thought about.
And reinvesting more in the business to really extend our competitive moat coming out the other side because we all know competitive environments don't stay at benign and traveler.
And I mean, that's like and where it really very question you know if you think back to.
2019, we had.
Talked about some savings we had identified and.
So that is exactly what you just indicated at our intent was to reinvest some of the business. So we are.
Making reinvestments in the business and right now around you know of programming engine.
And.
Some of our technology that Margo described a bit around the service model of really trying to rethink.
How we.
Deliver the experience in our stores so.
Where we are.
We are thinking forward here and we've got some.
And our meet some meaningful capital and our and our budget to make progress in that regard so.
We're going to be very selective and focused on where we make those investments, but I don't I couldn't I totally agree we agree as a company that we need to.
And best in the future here and that.
At certain times.
And if I can sneak in another question and I'm really intrigued by the sports betting, but at the parental side of me just wonders how do you balance that with B and a family friendly environment at the same time.
Another really good question.
Obviously.
Uh huh.
We will venture into this and.
Overtime, you know today.
We feel like sports betting you know could represent a meaningful opportunity for this brand.
And this is a wave that's really just kind of beginning.
We think you know stay.
Or kind of expand the legalization of that over time, we think it could be very complementary to our business.
Core target as adults 21 and up.
So we're going to we are actively looking to pursue that and where and negotiations.
That said as you look at food.
At this landscape today.
We estimate we could offer online sports betting and about 13 locations of three states.
Right.
There are.
Five or so other states that have made and allowance for mobile sports betting but presents some liquor.
And let's see challenges that we'd have to work through so there's this is going to be.
A bit of apparel journey.
And we see this market and the near term could be more like 2700, 30 stores out of our changed so.
Where we're going on and we're going to see how it works, but we think it's something that it could be very complementary of what we do.
Life and.
And so we are pursuing it.
Thank you.
Next we'll hear from Crystal cool with Stifel.
Yeah. Thanks, Good afternoon, guys I'm, just kind of I apologize if I missed this but how much of the operational improvements that are expected.
And to improve the EBITDA margin by 200 basis points are already in place today.
Yeah. Good question Chris.
I'll I'll do at T. This point and this may help is if you look at the key drivers here, there's really three main drivers of that drive almost 75% of these savings.
Becky.
And the first one is allergy and labor.
And you know we've talked about some of the technology, you know that and we're rolling out with tablets and mobile order and pay.
Upgrading of kitchen management system high speed kitchen equipment, and so we're really investing in that area.
And Nate.
You know our back.
Things are same in front of house more efficient.
And also looking at and you know scheduling improvements and off peak day parts and so our day labor is a big component you know, what we're talking about and the service model surrounding that.
And also from a management labor standpoint, you know, we will have a reduction and a number of managers.
Back at kind of stores.
And in some cases will augment with you know some some hourly team members archaeometry team members and.
And then G&A expense that and then I mentioned as well so.
G&A expense you know as you compare it to 2019, it's more of a like for like computers, and we'll see at.
Andrew and really nicely and a reduction from 2019 from of head count standpoint and consulting.
And the rule all of those three together and you get you know about three quarters of the same.
Aside from that there is no sign of things you know other line items that you know at up the remainder of debt we've identified.
But I don't feel comfortable about and you know I think if you're just thinking about at this way you know if we were to come back to our 2019 annual volume of Tomorrow, which we wont, but if we did of.
You know I feel very comfortable at that we would of T V savings because they really already have been identified and most of the.
And here has already been change to accommodate these same thing so we feel comfortable about the.
And the structural changes that we've made.
Great and then my other question just relates to labor I was hoping you could help us understand how labor will be impacted now that the New York stores are opened and and whether or not and you have a sense.
The structure, where we could settle out on the intermediate term and once they fully reopen essentially conditioned on I guess of few levels of different index sales performance.
Yes, that'd be quite some time and you know New York and hit and when California opened as well and even though you know definitely.
And the average you know on hourly labor.
So and it will definitely come up from where it is.
And you know, we'll start to normalize as we get all of our stores open and fully operational. So we got you know a little bit of runway before that happens.
But you know as that happens we will settle out.
Ladies and at a higher level than we are today okay.
Okay, but you know at during that timeframe and we'll also have some of this new technology and and service model that will help us sustain a lower.
Level of power debate for us at percent of sales and we saw it in 2019.
But it would definitely be higher than it is today.
Definitely.
Okay, great. Thanks, guys.
Thank you.
Yeah.
Brian Vaccaro with Raymond James has our next question.
Hi, Thanks, and good evening I wanted to circle back on the quarter to date and and I think you said the $150 million and sales over the eight.
And could you give us how many operating weeks are reflected in that or maybe just help us level, where particularly sales of dollars are on a fully operational units and February versus March just to make sure. We're all at the same page.
Uh huh.
Weaker and weaker.
You're asking right now at the total.
Total number of operating store week.
Yes, yes, because of the definition and gets a little confusing of stores opened of stores closed obviously California's opened but the sales are down and so I was just trying to level set kind of average weekly.
A lot sales trends.
That's reflected in the hundreds of 58.
Brian and I'm not sure we have a store weeks here.
What kind of share with you I don't have that stat right now yeah honestly we've average.
And collectively.
Weekly at $18 million or so of a week.
I don't have the.
Store weeks here to provide two okay, alright, and maybe we can circle back after offline, but I also wanted to clarify the quartile of stats that he gave Brian I think earlier in the Q&A, the 91% top quartile of 78% I think it was for.
And about a quartile of et cetera was that of quarter to date, that's over the full eight weeks quoted at eight period right.
Okay Alright.
Okay, Great and then and just to shift gears, a little bit to the margin recovery framework, you provided the $30 million and and saving the buckets. There does that include.
The second thing efficiencies as well or maybe you could just the 30 million, we've got labor other op X gene.
And and marketing, maybe just ballpark kind of how you expect that to fall over the different.
Yes from a marketing standpoint.
Really.
And at the two main things that we see and marketing.
Number one you know we're planning on doing fewer promotional discounts.
And at its a really at a change in thought and and strategy to do more you know and the type of offers versus kind of always on type of promotional discounts and so.
And that that will save us some money and Thats one of the things that we've learned over the last few months and stuff we've done significantly less discounting.
And you know it.
At its still we still see the sales come in and especially on the amusement side and we haven't really seen an impact there.
Hum and other smaller items, you know with our new menus.
And it's kind of a one page paper based type of menu. So it will save you know a lot of money there.
So the overall savings and end market and wont be you know the bulk of it but other than a couple of areas and at that and will that will help us.
Couple of other areas.
And you know all of our special events team or you've really kind of rethought the organizational structure of our special events team and we've.
And we've invested in and some technology, there as well to make you know make ourselves more efficient.
And I'm thinking more from a kind of a centralized approach and using more tools to make us more attention to that.
And will help us as well.
So those are a couple of other areas, but you know the other theories that I mentioned you know this is Jay towards end of St and you know the G&A out where do you think Brian and management of labor.
Yeah, Okay and on the management of Labor side, I think pre Covid you had the general manager and then I think the average store had eight.
Well managers per store, where do you see that settling out in a post COVID-19 world on average.
Yeah, So and so on you know on average.
At.
It'll it'll settle and set a lot of about between seven and a half and eight or so.
Yeah.
Okay.
And that includes the gym.
Correct.
Okay, Great and then lastly can you just expand on what you said about the virtual brands and how many concepts are you currently running I think I heard the link concept, but is there another one or perhaps that you're testing and then what level of sales per week are you currently generating.
<unk> from the virtual brand and you may have said at on the call, but I missed that thank you.
Hi, Mark at.
We have two kind of sketch on concepts right now and the ways that we have casting and seven of our stores and then we had a kind of stuff, which is faster and they're kind of kitchen, which is at once.
Okay strictly Dave Dunlap.
And then you and our investors American kitchen of the concept.
So we have two kind of kitchen concept right now and we have one at that we have a plan at fast in September.
And I don't have the weekly sales number right now.
What we had given at the three concepts combines at the date of investors to go and the wings out and then also the Buster's American kitchen, and we stayed out of averaging at about 50000 per store.
And the one.
And the long annualized yep.
And I mean, we're aware of them.
And is that where we.
We're we're early on here and now we're getting our sea legs around promotional strategy I think we've done three.
And both of them.
And that emotional windows and we're seeing.
A pretty good pick up for the three concepts and we've done that so.
It's and.
And our view and I think Margaret said, we view of this is highly of incremental here.
But you know we have of 140 store training, we don't have a thousand and you know our our volume as you know obviously heavily mixed towards entertainment. So.
The impact that it can have on us versus our traditional cash.
Out of your findings just because it's.
Most of it doesn't have the same kind of potential to move the needle for us.
Yeah that makes sense, okay. Thank you I'll pass it along.
We'll now hear from Brian Mullan with Deutsche Bank.
Hey, Thanks Jay.
Just a question on development it sounds like there's 10 stores that are in some form of planning now, but you know looking out beyond that.
Picture do you do you expect Dave and Buster's to be of consistent.
Unit growth concept once again and if you do could you just talk about the longer term.
Opportunity would you do smaller formats and prior would you go slower than per.
And maybe none of that but how are you thinking about this.
Yeah.
Yeah, I mean good question.
Even pre Covid, we had communicated communicated that we were looking to moderate our pace of store growth too.
Pivot our attention.
More attention towards the core brand and the face of the competition and we've seen so.
As we sit here today.
Our challenge is to get our state of our stall of stores reopened and to rebuild at core business and our view that is the clearest and the quickest path to recovery.
For our company financial Health.
Not to mention.
And this is a real issue.
And at growth at a rapid pace, but at a lot of pressure on our store leadership who are under.
Under.
A lot of pressure right now and the stores were not as steep as we once were.
And so.
Near term at all.
And next year of 2021, and we're gonna be really measure and we're gonna be conservative on new store development.
As Scott mentioned, and we had planned to do four stores and opened one of them already at one of our kind of new small format stores and Gainesville doing very well and we've got three more on tap.
And that cadence for 2021, and it's gonna be pretty equally weighted.
And that mixers and I think two large kind of 35000 ish foot square foot.
Again, the Gainesville, that's less than 20000 square feet, and then one that sort of that medium 30000 square feet. So.
And it's gonna be measured.
2021, we've got a pipeline of about 10 attractive stores that.
We have right now and we're gonna be pretty flexible on how we think about those 10, you know depending on how we recover and our people pipeline.
Now, we'd like to lease flexibility to flex up and down depending on how.
And business recovers.
You know my feeling right now is that there's going to be at a time and place for us to really start to accelerate again on units.
You know, we feel very confident and our potential is at.
At that 230 to 250 kind of North American potential but that's.
Much more likely consideration as we head into 2022 and beyond.
We're going to work hard to get this core business back online and performing well that's our top priority.
Yeah.
Okay. Thanks, and then just my follow up.
And Scott I think you mentioned earlier you don't expect.
How are sales recapture of between 19 and at any point this year, but if you were to somehow be surprised by that this summer with you know at this marine 20th of steam as real or anything like that consumer demand is there a scenario, where you could exceed 200 basis points of margin expansion at <unk>.
If the revenue recapture is actually greater than 100% sort of gets.
So I for 706% this summer or even next year.
Would there be costs that come back associated with that.
Yeah, I think the way of thinking about it is you know if we were you know all of a sudden and you know to get back at 2019 levels and revenue.
And much more quickly.
Hundreds of anticipated.
And I kind of playing at this a little bit before the changes that are required to get these savings at at.
And at mostly been you know made and so we thought about the structure that it needed to achieve these savings at.
And and large currently we've already made those changes and.
And then it's at.
It's really a matter of you know at the revenue you know to increase them.
And you have to show and to leverage against net new structure and.
And you know so you know for us.
And if we if we saw that happen sooner than later then yeah I think we would see the savings come through sooner as.
So because most of them and work has already been done.
Okay. Thank you.
Sure.
Thank you.
Well now hear from Joshua long with Piper Sandler.
Great. Thank you for taking the question when thinking about marketing and the.
Well become more digital is that more of a strategic pivot here over the near term as I think about the story over the last couple of years incremental weeks and diving deeper into some of these.
Different channels, whether its nickelodeon or other things and the TV category has been a meaningful driver of sales and so just curious and.
And how to contextualize the commentary around moving at a significant piece of those dollars into digital and and if we should think about that as just a of near term pivot given that there's a little bit of of lead time and getting back into T. V or this is more of a structural shift longer term into you know really prioritizing the digital channel.
Well, I think 'twenty, and 'twenty and kind of ample of our accelerated our plans. Obviously, we you know when we had COVID-19 we shut down every.
Element of our media spend and we could.
As of our stores were shut down and and canceled whatever we put out of our upfront by.
Cable and and we got a little bit of a media running force and the third quarter, but you know and this kind of environment and.
Number one we are locking into you know a.
A more fixed.
Cable by as you know.
And that's something we're really wanting to do number one we wanted.
To be pretty flexible.
With the BD of plant and then.
And then secondly as.
As I look at how our stores are recovering and right now with limited media. We're super encouraged by that you know we had a sort of always on strategy and we've gotten ourselves as you point out too.
To being on T V.
And some channel virtually every week of the year and so you know strategy. This year as we come out of this COVID-19 situation.
And we're going to learn some things by at it is to pivot.
We're heavily into digital channels.
We spent.
A significant amount of effort during the COVID-19 shutdown on developing out our marketing Tech stack.
And it is our attempt to use utilize that to relate.
Reach our guests where they are at and that's that's not always on broadcast television. So we're going to lean into that.
And much more heavily than we had anticipated pre COVID-19 number one it gives us a lot of flexibility to cut it on and cut at all and we're going to use this time.
And it might be when you have disruption and you can use of time to think differently about a lot of things. So we're gonna do that here and we're going to see what we can deliver.
That makes sense I appreciate that color and then secondarily thinking about guest engagement and really leaning into digital and can you talk about where you are on that journey in terms of understanding and and developing more of that conversation or that one to one marketing opportunity with you.
Guests at either through your digital App or maybe with some of that.
Forthcoming plans on and investing in the digital channel.
Well as I mentioned, you know 22020, and and really early into 2021 and we worked.
Worked hard to put in place of.
A number of new.
Tools within our Texas.
Ex that one.
It was a new C D P system, where we really can.
You know collect and organize and as you might imagine our customer data and to profiles, which.
It gives us two and ability to.
Craig and targeting.
Look alike audiences and that sort of thing and help.
Our producer.
Produce our media cost and improve our efficacy here and that's something we're looking to unlock.
We've invested and a salesforce marketing cloud and <unk> CRM system, that's big for US, we did that and the teeth of Covid and in July of 2020. So.
And so and we're really looking to integrate that with our C. D P and that's.
So that was of heavy heavy lift for us and in 2020.
And there's another a host of.
Slew of other total to two other key ones.
But I think our marketing team is really armed right now of the tools they need to.
Two.
Really engage with our guests more on a one on one level as opposed to what has historically been.
Of a broadcast T V.
And as the only real play and a playbook.
Thank you.
Our final question will come.
From Jon Tower with Wells Fargo.
Alrighty then.
I will not take much time most of my questions have been answered, but I was curious.
And if you guys have had any chance to reach out to a number of your core customers that haven't been able to visit your establishment during the pandemic.
And what they've been doing to entertain themselves.
Crisis, meaning have they decided to.
You know pick up their gaming elsewhere had have they not.
Not really engaged and any sort of you know.
<unk> the way that you guys offer them and your.
Stores, and and then frankly anything.
Anything in the stores that you have reopened.
What are you seeing with respect to amusement use within the stores meaning.
And our.
Consumers staying away from highly contact games like pop of shot or are you or are they moving back to that as quickly as you.
Dissipated.
So I'll take the latter part of the question and and just like generic of gastric and coming back and great stores and fill up with GAAP and are excited to be back at Dave and Busters and perhaps of welcome back of the fact that let me famous the gases and.
Really.
Really.
And break things, just coming back and having a day and that's experienced of late at night to have at rehab.
Cash flow distance, they not only and our dining rooms, but also and our mid way and we have at a tremendous amount of ass and efforts and to ensure that we have.
Sanitation.
Patient stations and really on every share.
Constant cleaning and what's going on what type of stores, and creating and midway and and creating our games and stuff at least down at the gas is coming back and enjoying and I'll, let the game and and we're thrilled by that and restaurants and be able to provide the sign but we haven't seen any modification.
Acacia and their behavior and in that way.
Yeah, and I got a I.
I guess the first part of that question, which is maybe more around you know how of how we're staying in touch with the guests and getting feedback there the reality of this.
And 2020, when we were looking to.
To make significant significant reductions to our cost structure.
You know we just continued.
Well a lot of things and one of which was some of our.
Yeah, our guest surveys and all of those sorts of things. So you know just recently.
And when I say recently and I'm talking about last month, and and where it's ongoing right now of the implementation, we've reactivated with a new partner.
A customer feedback and collection system debt.
We actually feel a lot better about and what we had pre COVID-19, but.
To say, we haven't commissioned and John significant work and research.
And or our normal survey type of activity since Covid started and we're really just store right now and starting to reinvest and that we think it's important.
And we're spending money on that but.
You know most of the stuff that we've been looking at over the last year or you know commissioning commissioning type researched by other third parties and and not ourselves.
Got it thank you and and best of luck.
Thanks, John.
Yes.
And that will conclude today's question and answer session.
And I'll turn the conference over to Brian Jenkins for any additional or closing remarks.
Alright, well, thank you for joining our call today, sorry, we ran a little long.
Wish you and your families are safe spring and hope you have a great one and I hope you'll come out to one of our of Dave and Buster's locations really sooner, but we're gonna be opened.
And really saying, we've got a few left but please come out and see if I have a great at night.
This concludes today's call. Thank you for your participation you may now disconnect.
Yeah.
Okay.
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