First Watch Restaurant Group (NasdaqGS:FWRG) FY Conference Transcript

First Watch Restaurant Group (NasdaqGS:FWRG) FY Conference Summary Company Overview - Company: First Watch Restaurant Group - Industry: Restaurant and Food Distribution - Date of Conference: September 10, 2025 Key Points Business Performance - Q2 Performance: Positive momentum with sequential improvement across all business aspects, addressing previous headwinds related to third-party delivery and Florida market stabilization [4][5] - In-Restaurant Traffic: Slightly negative but improving sequentially; historical performance has been generally positive [6] Marketing and Brand Awareness - Marketing Strategy: Transitioning to a more sophisticated marketing approach, leveraging data and insights to target consumers effectively [7][8] - Brand Awareness: Currently tracking brand awareness and its correlation with traffic; unit growth is believed to contribute to increased brand awareness [10] Menu and Beverage Innovation - Beverage Sales: Coffee is the top-selling item; ongoing innovation in beverages, including fresh juices and alcohol offerings [14][15] - Consumer Trends: The company is well-positioned to cater to the "sober curiosity" trend, focusing on health-oriented beverage options [17][18] Digital Transformation - App Relaunch: Recently relaunched the customer-facing app, receiving positive feedback with a 4.9-star rating; features include waitlist management and nutritional information [19][20] Development and Expansion - New Restaurant Performance: New restaurants are exceeding performance expectations, with a target of $2.7 million in average unit volume (AUV) by year three [21][24] - Site Selection: Focus on high-quality locations (A sites) has improved performance; adapting to second-generation spaces has become more common [26][30] Competitive Landscape - Market Share: First Watch continues to gain market share in the daytime dining category, with a focus on operational excellence and customer experience [33][34] - Consumer Demographics: The brand is attracting a younger demographic (Gen Z and Millennials) through menu evolution and brand presentation [36][37] Consumer Behavior and Industry Trends - Breakfast Market: While breakfast is seen as a discretionary occasion, First Watch maintains a focus on everyday value and hospitality, which is resonating with consumers [39][41] Management Development - Certified General Manager Program: Launched to promote internal talent and reduce turnover, essential for supporting the rapid expansion of new restaurants [44] Additional Insights - Operational Efficiency: Emphasis on reducing friction in customer experience and enhancing operational throughput through digital tools [20] - Real Estate Trends: Observing an increase in second-generation space opportunities due to shifts in the commercial real estate market [31] This summary encapsulates the key insights and developments discussed during the conference, highlighting First Watch's strategic initiatives and market positioning within the restaurant industry.