Strategic Focus on Long-Term Growth Initiatives and Brand Positioning
Management has clarified their brand positioning and established four strategic priorities: team member experience, handcrafted food and beverages, WOW hospitality, and keeping BJ's atmosphere fresh.
Progress includes momentum with value platforms like the Pizookie Meal Deal, and brand relevance through innovative offerings like the Snickers Pizookie and Fryckles.
Long-term initiatives are set to roll out in the second half of 2025 and into 2026, with a focus on sustainable and profitable growth.
Impact of Hardie's Business Attrition on Volume and Profitability
Hardie's protein and produce programs were partially or fully exited during Q2, impacting reported case growth and volume metrics.
Excluding these programs, specialty case growth was 5.8%, and center-of-the-plate pounds increased by 5.8%.
The company expects continued impact on reported volume numbers until the second half of 2026, as they fully cycle out these high-volume, low-margin programs.
Management emphasizes that shedding non-core business improves overall profitability and aligns with their long-term strategic focus.
Top 4 DMAs (Los Angeles, San Francisco, Houston, Phoenix) experienced outsized macroeconomic pressures in Q2, contributing to a 30 basis point reduction in system-wide same-restaurant sales.
Markets affected by macro pressures saw a significant downturn starting mid-June, punctuated by headlines and macroeconomic news.
Management remains optimistic that consumer sentiment volatility will moderate over time, which could stabilize sales.
Accelerated Rollout of Green Apron Service and Technology Integration
Green Apron Service to be fully scaled across all U.S. company-operated stores by mid-August, ahead of initial schedule.
Early pilot results show significant improvements in transaction times, customer service, and full-day sales performance.
Implementation includes new staffing models, SmartQ order sequencing technology, and a new performance report ('grow report') to enhance operational focus and store performance.
The rapid deployment aims to build a stronger operational foundation to support future innovation and customer experience enhancements.
Dafinchi
