Q4 2023 BT Brands Inc Earnings Call

Yes.

Operator: Welcome to the Bt Brands Investor Conference, at this time, and in the listen only mode. Later we will conduct, and would now like to turn the call over to our. Thanks, Paul. I appreciate the introduction. And with me is also Gary Copperud.

Welcome to the BP brands Investor Conference call. Our hosts for todays call are Kenneth Brimmer as Gary covered.

At this time, all participants will be in a listen only mode.

Later, we will conduct a question and answer session.

Kenneth W. Brimmer: I would now like to turn the call over to our first speaker. Mr. Beamer you may begin sir.

Kenneth W. Brimmer: So if you have questions when we get to the Q&A, certainly Gary and I can both address any questions. Bt Brands reported after the close today its 2023 results, and certainly, at first blush and at closer examination, both, they were disappointing, and we were disappointed in the results for the year, where we recorded a net loss of $887,368 and that was on $14 million in sales, which was an increase of 15% over the prior year. That increase was largely real because we didn't make any acquisitions during the year.

Kenneth W. Brimmer: Thanks, Paul I appreciate the introduction.

With me as always.

Gary W. Copperud: Gary Copper road. So as you have questions when we get to the Q&A, certainly Garry and I can both.

Gary W. Copperud: The address any questions.

Gary W. Copperud: BT brands reported after the close today, our 2023 results and certainly at first blush.

Gary W. Copperud: And that at closer examination.

Gary W. Copperud: And they were disappointing and we were disappointed in the results for the year, while we recorded a net loss of $887368 down.

Gary W. Copperud: And that was on 14 million in sales, which was an increase of 15% over the prior year that increase was oh, largely real because we didn't make any acquisitions during the year. So it was in general attributed to the business that is for the most part that we already own.

Kenneth W. Brimmer: So it was mainly attributed to the businesses that we already own. I think the loss, you know, can be a little bit disarming when you see that number. But what I'm trying to communicate to everybody today is that I think we are more optimistic than ever about what we're going to do with Bt Brands. And I think you're going to see some things happen in this next year that are going to reward the patient holders of our shares because we do have 6.9 million in cash on December 31st, 2023, and most of that's in Treasury bills.

Gary W. Copperud: I think when the last you know can be a little bit disarming when you see that number what I'm trying to communicate to everybody. Today is I think we are more optimistic than ever about what we're going to do with BT brands and I think youre going to see some things happen. In this next year that are going to reward the ah patient holders of our share.

Gary W. Copperud: <unk>.

Gary W. Copperud: We do have at the December 31st 2023 6.9.

Gary W. Copperud: $9 million in cash and most of that's in our in Treasury bills and we also have another approximately little over 1 million of cash under our control at Bagger Dave's. So what I want to try and walk you through today is you know where we're going to take this company.

Kenneth W. Brimmer: And we also have another approximately a little over a million dollars of cash under our control at Banker Dave's. So what I want to try and walk you through today is, you know, where we're going to take this company and what makes it an attractive investment today. I think one of the things and you guys, investors can all go through this yourself, but you know, when you note at the note the $887 loss, the first thing that sticks out is the equity in our loss at Bagger Dave's, which was $347,000. So that's, you know, 35% before tax of our total loss was incurred at Bagger Dave's. We incurred a non-recurring expense, although we haven't abandoned our efforts, but we incurred, I guess, an expense of $100,000, if not a little bit more in terms of legal and other professional services associated with our efforts to inject ourselves onto the board of Noble Roman.

And what makes it an attractive investment today I think one of the things and you guys day investors can all go through this yourself, but you know when you know at the note the 887 dollar wise.

Gary W. Copperud: First thing that sticks out is the equity in.

Gary W. Copperud: Our life and Bagger, Dave's, which was 347000 so that's.

Gary W. Copperud: 35% before tax all of our total loss was incurred at Bagger Dave's, we incurred a non recurring expense, although we haven't oh abandon our efforts, but we incurred a I guess an expense of $100000, if not a little bit more in terms of legal and other professional search.

Gary W. Copperud: Since its south gate, it with our our efforts too.

Gary W. Copperud: Inject ourselves onto the board of noble Roman so those are two things that are not really in the core operations of Burger time that bolus that happened last year and then yeah.

Kenneth W. Brimmer: So those are two things that are not really in the core operations of BurgerTime that both happened last year. And then, and we're not alone in this, as most companies do, we incentivize executives with stock-based compensation. But the way the rules are written, you have to attribute a value to those shared grants, and that value becomes a charge to operations.

Gary W. Copperud: We're not alone in this that as most companies do we incentivize executives with stock based compensation and the way. The rules are written and you have to attribute a value to those share grants and that value becomes I charged operations.

Kenneth W. Brimmer: So we also had a significant charge for fact-based compensation during. So, all of that said, I'll just go through each of the concepts a little bit briefly. We in BurgerTime have closed in the last year, since the end of the year, one of the Sioux Falls stores and that has, I think, going to be a positive because we've seen business in the other Sioux Falls stores go well into the double digits. So, we think we've just moved customers over to a more efficient model. So, we'll end up with seven BurgerTime locations and one DQ franchise, and if you read our, uh...

So we had also a significant charge for.

Gary W. Copperud: No.

Gary W. Copperud: Stock based compensation during the year.

None: So all of that said I'll just go through each of the concepts are a little bit.

None: Briefly we in Burger time, we have closed in the last year since the end of the year, we close wanted us to fall stores and that has a I think going to be a positive because we've seen the business and the other Sioux falls store has been up a well.

None: Well into the double digits. So we think we've just moved the customers over to a more efficient model. So we ended up with seven broker time locations and one DQ franchise and as you read our our.

Kenneth W. Brimmer: , filings, which we announced at the end of the last quarter, we are going to exit that Dairy Queen franchise. It really doesn't fit with our business to be an owner of a franchise to be a franchisee. That's not our approach. It works well for some, but that's not what we're going to try and do.

None: Filings, which we announced at the end of the last quarter, we are going to exit that dairy Queen franchise. It really doesn't fit with our business to be an owner of a franchise to be a franchisee that's not our approach works well for some but that's not what we're going to try and do and dairy Queen is never been completely happy with.

Kenneth W. Brimmer: And Dairy Queen has never been completely happy with a public company as a franchisee. You know, they're generally looking for owner operators. So it's been a relationship that doesn't work very well for either of us.

None: As a public company as a franchisee there generally are looking for owner operators. So it's been a relationship that doesn't work very well for either of us. So we're we're.

Kenneth W. Brimmer: So we're working to sell that unit, and that'll happen sometime in the next few months. Bagger Daves, I would call your attention to the Bagger Daves press release that we issued a couple months ago. And this is probably the last time you're going to see the name Bagger Daves, at least in one of our press releases, because we plan on changing the name, getting PCAOB audits done, and doing a reverse stock split at a level we haven't yet determined.

None: We're working to sell that unit and that'll happen sometime in the next few months.

None: Dave's I would call your attention to the Bagger Dave's press release that we issued.

None: A couple of months ago, and this is probably the last time, you're going to see the named Bagger Dave's at least in one of our press releases because we plan on changing the name getting P. C. L. B audits done doing a reverse stock split what level, we haven't seen yet.

Yet determined and we are negotiating with several people because several people have approached us several concepts, where they want those bagger daves locations. So how we exactly accomplished that.

Kenneth W. Brimmer: And we are negotiating with several people because several people have approached us with several concepts where they want those Bagger Dave locations. So how we exactly accomplish that is under negotiation. But what we see as the likely scenario is Bagger Daves would actually end up acquiring another concept and converting all six Bagger Dave stores to a new concept, if you will. One of the things that everybody who's looked at the locations agrees is that, A, the physical plant of each location is in very good shape.

Is under negotiation, but what we see though a likely scenario as a bagger Dave's would actually end up acquiring another concept and convert all six bagger Dave's stores to a new concept, if you will and.

None: One of the things that everybody who has looked at the locations agrees is that a the physical plant of each location is in very good shape. The locations are solid.

Kenneth W. Brimmer: The locations are solid, and there isn't any reason that, in terms of acquisitions we've looked at, we couldn't do the system average, if not more. So we're talking about a business, for whatever reason, that's doing just over a million per unit. And we think we can get that up, with a better concept and a fresher look, we can get that up to approach a two million per unit average unit volume for our six units. So now you're talking about $12 million in annual revenue.

None: And there isn't any reason that the in terms of acquisitions, we've looked at that we couldnt do the system average if not more so we're talking about a business for whatever reason that's doing.

None: You know just over a million per unit and we think we can get that up.

None: With a better concept and a fresher look we can get that up to approaching 2 million per unit average unit volume for our six units. So now you're now you're talking $12 million in annual revenue and if we can manage it to kind of an industry standard youre talking about EBITDA of 15%.

Kenneth W. Brimmer: And if we can manage it to kind of an industry standard, you're talking about EBITDA of 15% on that $10 million. So we're talking about going from a losing proposition to our 40% interest being very, very contributory to a positive net income. There's not much to say about pie. That's been a home run acquisition for us.

That $10 million, so we're talking going from a losing proposition to our 40% interest be.

None: <unk> been being very very contributory.

None: Contributory to a positive net income clients.

None: Pie in the Sky Theres not much to say about pie, that's been a homerun acquisition for us.

Kenneth W. Brimmer: We paid back our investment in just a little over a year. We are looking at we're before the town council out in Falmouth, Mass. on Monday; we're going to add a liquor license to the concept. We've just seen from our involvement at pie that in the evenings and late afternoon, people are looking for something besides just a croissant or a muffin. So we are going to turn it, as the day wears on, into a little bit fuller service. We've got a wonderful outside seating area, right at the ferry terminal for the ferry to Martha's Vineyard.

None: We paid back our investment in just a little over a year. We are looking at a well before the town council allowed and download the mass that Monday, we're gonna add a liquor license to the concept. We've just seen over our involvement at pie. We're in the evenings and late afternoon people out.

Looking for something besides just a call center or of our them up and so we are going to turn it as the day wears on into a little bit more Fuller service, we've got a wonderful outside seating area right at the.

None: Very terminal the theory to Martha's vineyard and it attracts people do like to sit there and hopefully we'll end up increasing their check average by consuming beer and wine so that Oh that happens Monday, we expect a favorable outcome there village a beer garden.

Kenneth W. Brimmer: And it attracts people who like to sit there and, hopefully, will end up increasing their check average by consuming beer and wine. So, whatever that happens on Monday, we expect a favorable outcome there. Village Beer Garden, you know, transitioning down to Florida, that's still been a challenge for us in terms of getting it to profitability. We've invested a lot in the location to bring it up to what we consider a better standard, but we're still not satisfied. We had one of our employees, actually, from pie, who's a chef down there for 10 days, eating the menu, and cooking the menu.

You know transitioning down to Florida, that's still been.

None: Been a challenge for us in terms of getting it to profitability, we've invested a lot in the a locations too.

None: Bring it up to what we consider a better standard, but we're still not satisfied.

None: We had one of our employees actually from Pi Who's a shaft down there for 10 days.

Eating the menu cooking the menu. So we're looking at the menu. We're looking at the basic concept and Ah Yeah, I think we're going to be making some dramatic changes there I skipped my key against Kiggins is our other Florida, the kind of a traditional Florida fish house, it's in an excellent location across.

Kenneth W. Brimmer: So we're looking at the menu, we're looking at the basic concept, and I think we're going to be making some dramatic changes there. I skipped Keegan's.

Kenneth W. Brimmer: Keegan's is our other Florida. It's a kind of traditional Florida fish house. It's in an excellent location across the street from the beach; we benefit from the traffic of tourists and locals in the area. And you know, that business, it took us a while to get the kitchen right, as you remember, some of you will remember. We acquired it from a family who had run it for, you know, many years, and they were going to stay and help us with the transition. Well, we got a little less than full support in terms of that transitional help.

None: The street from the Beach, we benefit from.

None: Traffic of tourists and locals in the area and Oh, you know that business. It took us a while to get the kitchen right as you remember.

None: Some of you will remember we acquired.

None: Wired it from a family who had run it for many years.

None: And they were gonna stay and help us with the transition well, we got a little less than full support in terms of that transitional help.

Kenneth W. Brimmer: And it took us a while to get the staffing right, which relates to food costs, labor costs, and a whole bunch of different costs. But we think that's right. And then the last couple of weeks, we've been in the range of $80,000 a week for Keegan's. And that's basically pretty darn close to capacity; we could always do a little more, a little more at lunch. But I think when we get a week above 80, we're very busy, and everybody is making money, including us. So Keegan's is, we think Keegan's on the road to recovery.

None: And it took us a while to get the staffing right, which relates to food costs labor costs, and a whole bunch of different costs, but we think that's right and in the last couple of weeks, we've been in the range of $80000 a week for Kiggins.

None: And that's basically pretty darn close to capacity, we could always do a little much little more at lunch, but I think for when we get a week above 80.

None: A very busy and everybody is making money, including nuts dough Kiggins is.

None: We think Kagins is down the road to do to recover.

None:

Kenneth W. Brimmer: So in addition, I guess the major, in addition to the major redo of Bagger Dave's, which will be a positive contributor, the other thing that has us very excited is we have the resources to go out and certainly, we've seen over the last couple of months more opportunities than we've ever seen that can make a significant contribution to earnings right now because we understand the importance of delivering earnings for our investors right now, but also things that we have So our plan for Bt Brands is to, in an ideal world, we would find an acquisition where it has what you might all call proof of concept, where the concept works, the return on investment is high, but it's simple enough and straightforward enough where we could go and roll out 50, 100, 300, 400 units in a major rollout. And obviously, as you take something with proof of concept, you hopefully buy it at a low multiple of EBITDA and can get that monetized in the market at a higher multiple of EBITDA.

None: So in addition, I guess that they are the major or in addition to the a major redo of Bagger, Dave's, which will be a positive contributor to the other thing that has us very excited as we have the resources to go out.

None: And certainly we're seeing over the last couple of months more opportunities than we've ever seen and that's what both Gary and I have been focusing on acquisitions of which Ah Ah.

None: Can make a significant contribution to earnings right now because we understand the importance of delivering earnings are or our investors right now, but will also things that we have that we have the ability to grow so our plan for BT brands is to and an ideal.

None: World, We would find an acquisition where it had a what you might all call. It proof of concept, where the concept works retaining an investment is high but it's simple enough and straightforward enough, where we could go and roll out 50 of hundred 300 400 units are in a major rollout.

None: And obviously as you take something with proof of concept you are.

None: Hopefully by that a low multiple of the EBITDA and can get that monetized in the market at a higher multiple of EBITDA.

Kenneth W. Brimmer: There's just no question that that creates a winning formula for shareholders, and that's what we're focused on right now. So a disappointing year in terms of financial performance, but we're in a very strong financial position in terms of our ability to look at and do things that are going to be highly accretive to our investors. We're focused on doing the things that are highly accretive to our investors. And I would say I would look forward to making much more positive reports in terms of earnings in the future. So Paul, with that, we'll take questions that anybody might have. Like, Share, Comment, and Subscribe. [inaudible] questions. Yes, I can. How are you today?

None: There's just no question that that creates a winning formula for the shareholders and that's and that's what we're focused on on on right now so a disappointing year in terms of financial performance, but we're in a.

None: Very strong.

None: Financial position in terms of our ability to look at and do things that are going to be highly accretive to our investors. We're focused on doing the things that are highly accretive to our investors.

None: And Oh, I would say Oh, I would look forward to making a much more positive reports in terms of earnings in the future So Paul with that.

Paul: We'll take our questions that anybody might have.

Paul: If you would like to ask a question. Please press star one on your tongue.

Paul: Phone keypad now.

None: It will be placed into the queue.

Paul: Received.

Paul: Please be prepared to ask your question.

Paul: <unk>.

Paul: Once again.

Paul: Have a question. Please press star one on your phone now.

Paul: And our first question comes from Roger Lipton Lipton financial services.

Unnamed Participant: I am doing well, Roger. Thank you. Good. Yeah, forgive my voice.

Roger Lipton: Your line is open.

Yes, Hi, Kevin how are you today and Roger Yeah forgive my voice.

Kenneth W. Brimmer: I've got a little laryngitis, but I don't feel as bad as I sound, you say, but what do you think is realistic in terms of annualized volume there and and what kind of margin it is capable of covering? Yeah, so when we originally bought it, the former owners had done a little bit over three million in annual volume. You know, have you been in the store, have you seen, I mean, it's relatively small. I've seen pictures. You know, when we get to 80,000, we're really utilizing the capacity at a high level. So what we did, I think this was just smart. And we did it, we added it because you have a lot of groups, you know, families, grandma, grandpa who come into the store because it's a very family-friendly location. So we added a fair amount of banquette seating along the perimeter inside, which will give us more capacity. I think, to answer your question directly, I think we could certainly be at 3.2 million by 2024.

Roger Lipton: I don't I don't feel as bad as it sounds alright regarding kiggins.

Roger Lipton: 80000, a week.

Roger Lipton: Pretty good volume.

Roger Lipton: As you say, but.

None: What do you think is a real realistic in terms of annualized volume, there and what kind of margin.

None: Yeah capable.

Yeah. So when we originally bought the former owners had down a little bit over 3 million in annual volume.

None: Have you been in the store everything.

None: We are seeing pictures.

None: Ill it when we get to 80000, we're really utilizing the capacity they had a high level. So what we did I think this was just smart and we did it we add it because you have a lot of groups.

None: Families are grandma, Grandpa, who come into the store because it's very family friendly location. So we added a fair amount of bank get seating along the perimeter inside which will give us more capacity I think to answer your question directly I think we can certainly in.

None: Our 2024 be at 3.2 million and I think our bottom line margin and EBITDA margin would be higher but.

Kenneth W. Brimmer: And I think a bottom line margin, you know, an EBITDA margin would be higher. But I think we're looking at basically a contribution of certainly 10% of that. And you know, we'd like to run the four wall contribution at 15 to 20%. And you know, we get 15 on 3 million. That's a vast improvement from where we are today. Keegans is a very popular spot.

None: I think we're we're looking at basically a contribution of certainly 10% of that.

None: And you know we'd like to run the four wall contribution at 15% to 20%.

None: And you know, we get 15 on $3 million.

None: That's a vast improvement from from where we are today and I would say based on the last month.

We're teed up to get to that point so.

None: Higgins is a you know it's a very popular spot. If you go down there and you talked to customers in the store, which ive done there they've been coming there for many years. There's a repeat visits are virtually across the board and we appointed a woman the general manager down there and she's worth.

Kenneth W. Brimmer: If you go down there and you talk to customers in the store, which I have done, they've been coming there for many years. There are repeat visits virtually across the board. And we appointed a woman as the general manager down there. And she's worked in that area for 30 years. She knows restaurants in and out. And the team at Keegans is really strong. I mean, they are quality conscious.

None: Work in that area for 30 years, she knows our restaurants in and out and the team and the team at children's is a really strong I mean they are.

None: Quality conscious and.

Kenneth W. Brimmer: The food is excellent coming out. Now, we're not high-end, you know, we're not the fanciest place on the beach, but, you know, this is people who are going out for casual beach dining, but we still, you know, an average entree is still, we've got the menu right here, it's still great, well into the high 20s dollars per entree. So we're getting a good check average out of people, and people don't seem to balk at that at all. So we're excited about Keegan.

None: The food is excellent coming out now were not high and you know we're not the fanciest place on the beach, but you know this is a people who are going out for casual beach dining, but we still are you know where the average entree is still low.

None: Thank you Ray here still.

Ray: You know well into the high Twenty's [laughter].

Ray: Per our per entre. So we're getting a good check average out of people and people don't seem to be back at that and also we're excited about this every call.

Ray: You had some competition open there.

Ray: Yeah.

Kenneth W. Brimmer: You had, as I recall, you had some competition open. I'm not dissing the sports bar. In fact, we've upgraded our TVs in our place. But it's really much more of a drinking place. As you know, I assume you know at Keegan's, because of our small size, we don't qualify for a full liquor license under Florida's liquor regulations.

Ray: Situations.

Ray: Well you know yeah, you know the restaurant business when somebody new opens up everybody tries them I would say the competition, we've heard numbers and it's a very nice door and I ate down there and they invested probably a 4 million plus and but it's still it's a sports bar basically.

Ray: Do you want to if you want to go have a group of Sandwich and watch, which a lot of people doing Florida, So I'm not that distant sports bar in fact, we've upgraded our T vs in our place, but it's really much more of.

Ray: But drinking place as you know.

Ray: I assume you know Mike Higgins because of our small size, we don't qualify for our Florida, a full liquor license under Florida's liquor regulations. So we just have beer and wine. So if you're down there next time, you're in Indian rock speech, and you want to do tequila shots youre going to have to go down the street to the competitor in the.

Kenneth W. Brimmer: So we just have beer and wine. So if you're down there, next time you're in Indian Rocks Beach, and you want to do tequila shots, you're going to have to go down the street to the competitor. And that makes it a good dining experience. So we all know what it's like to be served by a professional, which doesn't happen everywhere in the restaurant industry today.

Ray:

Ray: Have your needs met there because that's more of their market. So, but you know any time competition comes in people try it they get it.

Ray: Hey, let's try this place and what we've really stressed this years excellent customer service because we don't want to you know everybody's going to try it we just don't want to lose anybody permanently so.

And at <unk>, It's just a lovely place and the people are are at the front of the house or are they been there most of them have been there for 20 plus years of servers.

Kenneth W. Brimmer: So it sounds like Keegans probably did not make any money in the last 12 months? Well, yeah, we have some amortization, some additional amortization. But yes, it had a, Certainly EBITDA was around break-even, but that's been addressed, I think, aggressively. So we look to that, you know, it's got to make a contribution, that's where we're going. And how far away from profitability is the beer... Well, that's an interesting question. The beer garden has to average about $30,000 a week to break even.

Ray: And I would tell you as a group of people you're not going to find a very professional group of servers. I mean, we're not talking about the college kids that nothing wrong College Kids I've got three of them myself, but oh, you're not going to find them waiting tables youre going to find servers, who are professional know what theyre doing there hustling they take care of the guests and.

Ray: They just have a have a fantastic attitude and it makes it you know that makes it a good dining experience. So we all know what it's like to be served by a professional which doesn't happen everywhere.

Ray: In the restaurant industry today, so it sounds like Higgins, probably did not make any money in the last 12 months.

Well, yeah. The way we have a we have to have my amortization, some additional amortization, but yes. It was had us.

Certainly EBITDA was around breakeven.

Ray: We've that's been addressed I think aggressively so that's when we looked at that the you know what.

Kenneth W. Brimmer: Now, the last few weeks, of course, it's the season in Florida. So, you know, we've been above that. So, I mean, in the very discreet one month, you know, we probably are going to have a profit there. But we've experimented with two things. One is, and this comes from my staff down there, they talked about there's a gentleman who does a show on Friday and Saturday nights. His name is Herb, and he performs over at Disney at Epcot Center in their German pavilion over there.

Ray: It's got to make a contribution so.

Uh huh.

Ray: That's that's where we're going and how far away from.

Ray: Profitability is the beer garden.

Ray: Well, that's an interesting question the beer garden has to average about the breakeven has to average about 30000, a week now the last few weeks of course its ease it in Florida.

Ray: So you know we've been above that so I mean in a very discrete one month you know, we probably are going to have a profit there.

Ray: But we've experimented with two things.

Ray: One is and this is comes from my staff down there they talked about that you know there's.

There's a.

Ray: Gentleman, who has does a show on Friday, and Saturday nights and his name is herb and he performs over at Disney at in Epcot Center and their German 4 billion over there so he's very polished very professional.

Kenneth W. Brimmer: So he's very polished, very professional, and our manager said, well, we've got to get Herb to come back because that'll help build the business. So Herb is back, and he is helping to build the business. So we've got that entertainment product on Friday and Saturday nights, which is going to add to the business. And we've made the menu, we haven't abandoned German food because we know some people come in for, you know, they come in for a schnitzel or they come in for, they love our giant pretzels, so they come in for that and, you know, bratwurst and that, but we've added We've added other items that are more mainstream American, except we have downplayed the German approach.

And our managers said well, we gotta get her to come back because that'll help build the business. So herb is back and he is helping to build the business. So we've we've.

Ray: We've got Oh that entertainment product on Friday, and Saturday nights, which is going to add to the business.

Ray: And are we.

Ray: We've made them the menu, we haven't abandoned German food, because we know some people come in for <unk>.

Ray: You know they come in for a schnitzel or they come in for and they love our giant pretzels, so they come in for that and.

You know Brad worst in and that's what we've we've added are you know just a very good cheeseburger and Oh you know.

Ray: We've added other items that are more in mainstream American.

Ray: I said, we do have downplayed the legitimate approach, we still have the German beers, which people do come in for and ask for.

Kenneth W. Brimmer: We still have the German beers, which people do come in for and ask for. How much did the beer garden do under the president? Roughly about 1.4 million, and not a lot, not a lot more than that.

Ray: How about.

Ray: We've accomplished the beer garden do.

Ray: Under the previous ownership.

Ray: What's kind of worldwide Plaza yeah.

Ray: Roughly about 1.4 million okay. Okay, so not a lot not a lot more than that.

Kenneth W. Brimmer: It's not a lot different, and the place was in poorer repair than we thought, so one could say certainly we should have improved our looking behind the walls, so to speak, but And what are the trends at your 7-Burgers? Well, the trends this year in 2024, you know, have been off the charts good now. Now, having said that, you know, it's been a function of what we had at the beginning of March; we had a very early spring. So we had nice weather everywhere.

Ray: Much more than it's been.

Ray: Not a lot different than that and the place was.

Ray: And in <unk>.

Ray: Poor repair when we pour repair than we thought so.

Ray: One could say certainly no we should have improved our on road.

Ray: Looking behind the behind the wall so to speak.

Ray: But.

Ray:

Ray: Hum.

Ray: What are the trends at the breath.

Ray: Berger times.

Berger: Well the trends this year in 2024 hour you know have been.

Berger: Off the charts. Good now having said that you know it's been a function of we had at the beginning of March we had a very early spring. So we had nice weather everywhere. So our stores were all up double digits.

Kenneth W. Brimmer: So our stores were all up double digits through this last week. But last week, the weather, you know, kind of regressed to the mean, so to speak. So we've had some snow throughout the system and colder weather, which may have may have hurt us, but we, you know, and it's, it's, It's positive. I think what's hurt us there somewhat is higher labor costs, you know, where, as I said in the brief introduction, a few years ago, we could build a staff together and keep them there for, you know, maybe $1112 an hour and sometimes start people out as low as nine. Well, now that that world doesn't exist anymore.

Through this last week now that last week the weather.

Berger: Kind of regress to the mean so to speak so we've had some snow throughout the system and colder weather, which may or.

Berger: They have Louis but we we are you know.

And it's it's.

Berger: It's positive I think what's hurt us there somewhat is higher labor costs, you know where as I said in the brief introduction.

Berger: Few years ago, we could build a staff together and keep them there for maybe 11 12 Bucks an hour or so.

Berger: Sometimes start people out as low as nine well now that that world doesn't exist anymore.

Kenneth W. Brimmer: You know, and then, uh, in at least one of our locations, we've had a hard time getting a manager to stick. So we know that if I could take the manager of our best location and clone her, she runs the lowest food costs, the lowest labor costs, and she's, year over year, increasing sales by double digits on a base that was our number one store. So she's our number one store, and she's increasing it. So if I could take her, her name is Cecilia, and clone her, and we're gonna use her as a resource a little bit more because she does a lot of things right. But I think what happens is she just runs the store with a lot of intensity, which, and you are familiar with a lot of fast food concepts, and I was at one of the major competitors right here in Minneapolis, a national chain with a very large market value. And I would tell you, their service had zero intensity.

Berger: So you've got a and then.

Berger: You know in at least one of our locations. We've had a hard time getting a manager to stick. So we know that Ah if I could take the manager of our best location.

Berger: And clone her she wrote the lowest food cost the lowest labor cost in chi year over year, increasing sales by double digits on a base that was our number one store. So you can number one store and she's increasing it so if I could take her name Cecilia if I could take the failure and quote her and we're going to use her as a REIT.

Berger: <unk> is a little bit more because she does a lot of things right.

Berger: But I think.

Berger: What happens is you know she just robbins the store with a lot of intensity, which you know and you are familiar with a lot of fast food concepts and I was in one of the major competitors are right here in Minneapolis, a national chain with a very large market value and I would tell you.

Berger: Their service had zero intensity. So you know getting a manager as we've said even from the time, we went public in these burger type stores, who can really take ownership and Ken.

Kenneth W. Brimmer: So, getting a manager, as we've said, even from the time it went public in these burger type stores who can really take ownership and can run it with passion is the key. And we've had some of those, and we have some that aren't. So, and certainly in one of the locations this past year, we got hurt profitability wise by management turnover. I think we went through two managers, and it takes a while to figure it out. You said the double digit sales increase this year. Who's that if I'm Weather or what?

Berger: <unk> run it.

Berger: With with Passion is is the key and you know we've had some of those and we have some that arent. So.

Berger: And certainly in one of the locations. This past year, we got hurt profitability wise by by management turnover I think we went through two managers and you know it takes a while to figure out you said the double digit.

Berger: The sales increase this year up until the last week or so.

Berger: A function of.

Kenneth W. Brimmer: The weather was a part of it because, I mean, literally, although the high today is going to be 18 degrees here in Minnetonka, where I am, we've already had a couple of days in the 70s, you know, and the snow was all gone. So it just really became an early spring, which certainly helped. And then, you know, we went through a cycle where we obviously did extremely well during COVID, and our business was up 30-40%. And then, slowly, it kind of regressed to what one could assume were pre-pandemic levels.

Berger: Weather or what because.

Why there was a part of it.

Berger: Weather was a part of it because I mean literally we had that although the high today is gonna be here in Minnetonka, where I am is gonna be 18, we had we've already had a couple of days in the seventies, So and the snow was all gone. So it became if it gets really became an early spring which.

Berger: Which certainly helped and then you know we went through the cycle, where we obviously did extremely well during COVID-19 and that our business was up 30, 40% and then slowly it's it at a kind.

Berger: Kind of regress to what.

Berger: One could assume were pre pandemic levels.

Kenneth W. Brimmer: But I think now that the bottom has been established, and now we're going to bounce off of that, hopefully significantly. Yep. Okay, Roger.

Berger: But I think now I think that was the bottom has been established and now we're gonna bounce off of that.

Berger: Hopefully significantly so alright.

None: Thank you Kim.

None: Roger.

Kenneth W. Brimmer: I think we're good. Well, we appreciate the patience of our shareholders, and we appreciate the support of our shareholders. And the way we show our appreciation is to deliver results, and that's definitely our focus right now. So thanks everybody for joining us on today's call, and we'll look forward to talking with you at the end of the third quarter, which at the end of the first quarter, which ends on Sunday. So that comes up pretty fast.

None: Thank you.

None: Paul.

None: Do you have a question. Please press star one on your phone.

None: Okay.

None: Further questions I will turn the call back over to our host.

None: Like we're good with that.

None: I appreciate the patience of our shareholders and we appreciate the support of our shareholders and the way we show our appreciation is to deliver results and that's so that's a that's definitely our focus right now so thanks, everybody for joining us on today's call and we'll look forward to talking with you.

None: At the end of the third quarter, which at the end of the first quarter, which ends on Sunday, So that it comes up pretty fast.

Kenneth W. Brimmer: Thanks, Paul. I appreciate it. Blog us up!

None: Thanks, Paul appreciate it.

None: Lagerfeld.

None: Yeah.

None: The meeting has now concluded.

Operator: Great, thank you. The host has ended this call. Goodbye.

None: For joining.

None: And have a pleasant day.

None: Great. Thank you.

None: The House has ended this call goodbye.