thoughts on the blacklash of the new in app reward system deterring users.... how do you see SG dealing with complaints on serving sizes? Perhaps focus on driving value in personalization as you suggest? Forgoing the demand/profit from the other group of customers and targetting on those loyal and paying for the "personalized touch?"
following this how do you see the expansion of infinite kitchens and the CAPEX affected as a result in tariffs.... i am not sure but they say around 20% per kitchen cost is imported from china..... so 100k per location and assuming 25% additional tariff.... 25k more per store profit needed.... seems to wipe a 1% margin from store level or 100k a year more rev to make up. Not sure if I'm extrapolating but I would love to hear more from year.
Hey Ryan - check out this model I put together. Compare E41 to D41 on the Scenario Analysis tab. I've projected Restaurant-Level Profit to increase by more than $200k with Infinite Kitchen. If $100k of IK is imported from China and those parts are hit with a 100% tariff (% keeps changing), the impact of IK to profit would decrease from +$200k to +$180k (an extra $100k in CAPEX depreciated over five years). Still a benefit for SG, but reliance on China is a risk.
thoughts on the blacklash of the new in app reward system deterring users.... how do you see SG dealing with complaints on serving sizes? Perhaps focus on driving value in personalization as you suggest? Forgoing the demand/profit from the other group of customers and targetting on those loyal and paying for the "personalized touch?"
following this how do you see the expansion of infinite kitchens and the CAPEX affected as a result in tariffs.... i am not sure but they say around 20% per kitchen cost is imported from china..... so 100k per location and assuming 25% additional tariff.... 25k more per store profit needed.... seems to wipe a 1% margin from store level or 100k a year more rev to make up. Not sure if I'm extrapolating but I would love to hear more from year.
Hey Ryan - check out this model I put together. Compare E41 to D41 on the Scenario Analysis tab. I've projected Restaurant-Level Profit to increase by more than $200k with Infinite Kitchen. If $100k of IK is imported from China and those parts are hit with a 100% tariff (% keeps changing), the impact of IK to profit would decrease from +$200k to +$180k (an extra $100k in CAPEX depreciated over five years). Still a benefit for SG, but reliance on China is a risk.
https://docs.google.com/spreadsheets/d/136ZptdJLhME2URXgWmhC0aR17Ds0UTY52El_0rbmi7E/edit?usp=sharing