SPB Hospitality’s Kern on M&A, Refranchising

And clearly you have a broad purchasing basket.

So how will SPV be impacted by the tariffs?

Yeah, I mean, you know, when it first came on, you know, we were, you know, we were, you know, very, you know, nervous about what we were seeing.

So, you know, we've started to look at things, you know, domestically, canola oil, you know, we bought some that was in Canada.

We've kind of looked at that on a domestic basis and found some suppliers.

The challenge is everybody else is doing it at the same time.

So, you know, we got to balance the cost, you know, that's out there.

But, know we've been we're we're big in some respects but small and others so we can be a little bit more nimble so you know that was certainly a factor and canada was you know was not on our bingo card you know that would there be some challenges but clearly that's been a something we've had to adapt uh on that front there was a little bit of spirits on that uh as well uh and then you know really looking at produce side of things and you know particularly on avocados and what's happening on that front tomatoes now are are deeply impacted and so you know that there are there are things that we can you know because we're big we can kind of absorb the costs to a certain extent um And so we've been, we've been, you know, watching that across the lines.

Spirits is another one where there's a little bit of noise.

But, you know, we, we haven't been, you know, we haven't taken price on the brands, you know, this year.

I think that, you know, like a lot of brands the past couple of years, you know, we certainly had our fair share, you know, across the different dimensions.

I do still think that for the value and for the quality at a Jay's and a Stoney, you're, you know, the guest is getting to steal, still out there.

I mean, We're very conscious of where we sit with our competitors out there.

We have really not raised prices.

We've done a little bit here and there around the edges because of the basket of goods, as you mentioned.

Tariffs seemed to be getting, at least the uncertainty was the piece that was really driving a lot of the quick reactions.

you know, it's something we're watching, you know, the, the cattle front and the, and the thinning of, of cattle, you know, that was, you know, the, you know, the past 12 months or so that's impacted us.

And so we've been really, you know, we've, we've been moving around some of our vendor relationships and, and, and really, you know, we don't want to sacrifice quality but we also need to be mindful of what we're, what we're buying at.

And so with the amount of of, of, of, you know, beef and proteins and, and the trends that we're seeing with, with, with consumers out there, you know, we're very cognizant on, on that front.

And, you know, can we put daily, you know, uh, features out that are in seafood or chicken, uh, to help kind of, you know, uh, merchandise that, uh, as we build things out.

And what are you seeing from the U S consumer across your brands, uh, and has this year and has anything surprised you? I mean, I

guess the resiliency of consumers, you know, that they, you know, like all of us, it's just there's been all sorts of different things, whether that's, you know, early in the year, near 401k was, you know, getting a little bit whacked.

And so that would help, you know, that would hurt in theory, the consumer.

know your your higher social income um guests out there and so i think it's just that that they you know the guests have been have been really looking for a better you know sit down experience and i don't know if it's just you know people are tired of of kind of the qsr and and fast casual experience and wanting a little bit more of a sit down and i think that you know, casual, polished casual.

We've gotten better in terms of ticket times and, you know, you can make it a faster experience.