First Watch Restaurant Group (FWRG) 27th Annual ICR Conference 2025 summary

Business overview and growth strategy

• Operates 570+ units in the daytime café segment, with AUVs of $2.3M and a $17 average check.

• Focuses on a single seven-and-a-half-hour shift, fostering a strong employee culture and operational efficiency.

• Present in 29 states, expanding to 30 with entry into Massachusetts, demonstrating proven portability across diverse markets.

• Long-term target is 2,200 restaurants in the continental US, with annual unit growth planned at over 10%.

• New units consistently perform at or above expectations, with site selection criteria ensuring predictable results.

Financial and operational performance

• Fourth quarter results were at the high end of expectations, with comps flattish and traffic down about 3%.

• Maintained strong restaurant margins despite softer transactions, attributed to disciplined labor management and operational efficiency.

• Store-level margins improved in 2024, aided by new data tools and real-time labor performance tracking.

• Operational enhancements included KDS rollout, waitlist management, optimized dining room layouts, and pay-at-the-table technology.

• 50% of weekend customers now use pay-at-the-table, streamlining peak operations.

Market trends and regional performance

• Breakfast daypart saw the most consumer pullback in 2024, but sentiment is improving and the segment is expected to rebound.

• Florida, representing 25% of the footprint, underperformed but is now normalizing and remains a key growth market.

• Off-premise sales stabilized at 17-18% of mix, with a focus on profitable growth and partnership optimization.