All great points. I will be curious, myself, if these profit margin trends can persist with the expansion. Labor and occupancy should come down as they move into secondary markets.
But yes, I don't think they have the same potential as Chipotle. But my forecast also doesn't have them expanding to nearly that level.
Another year's numbers will help. 2023 was distorted due to the conversions of Zoe's Kitchen locations. So 2024 was probably the first year of clean data. 2025 will help in forming an opinion on trend. I think we'll know for sure in the next couple of years if there's any real uptake in tier 2 & 3 markets.
All great points. I will be curious, myself, if these profit margin trends can persist with the expansion. Labor and occupancy should come down as they move into secondary markets.
But yes, I don't think they have the same potential as Chipotle. But my forecast also doesn't have them expanding to nearly that level.
Another year's numbers will help. 2023 was distorted due to the conversions of Zoe's Kitchen locations. So 2024 was probably the first year of clean data. 2025 will help in forming an opinion on trend. I think we'll know for sure in the next couple of years if there's any real uptake in tier 2 & 3 markets.