Joined October 2023
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12 Oct 2024
Been looking into $SG and was wondering what people think.
1/ I understand that there seems to be a lot of interest in EBITDA margin expansion on a cost covered basis with IKs but what about the opportunity cost and cash conversion from opening new stores?
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12 Oct 2024
3/ Had chat with hyphen/$CMG investors who say it contributes to the notion of significantly overstated throughput – higher throughput/capacity unlocks flywheel of lower wait times → increased demand during peak hours → higher utilization of fixed labor costs.
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12 Oct 2024
7/ If you then add the cost of contractors, architects and subcontractors (according to HNGRY) is around $140K cash per store. What are people’s thoughts on the economics here?
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6/ Add retrofit costs and the lost profit of a store closure to the IK’s $500K product cost. If an NYC store does $3.5M in sales, the opportunity cost of the retrofit is ~$53K per month ($3.5M/12 x 18%).
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6) Quoted from HNGRY "Take the new Penn Plaza location, (assuming management’s 10% margin boost and $450K-550K reported CAPEX)" that means that infinite kitchen payback at the first two $2.6mm AUV suburban locations is about two years. How about retrofitting urban stores in NYC?
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5/ thoughts on street models? SG priced to near perfection – street DCFs incorporate 2/3rds of sweetgreen’s with IKs after hitting 1k locations with $3.8mm AUVs by 2036. Limited proof of concept and high opportunity cost of retrofitting. Breaking down numbers next thread.
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12 Oct 2024
4/ Read a HNGRY article cannel check says 1 employee processes ~1 bowl/30 seconds --> 120 bowls per hour within the Infinite Kitchen (so 240/hour for 2 employees). Around 31% lower than Spyce’s original statement of 350 bowls per hour in its own retail locations
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