First Watch Restaurant Group (FWRG) Piper Sandler Growth Frontiers Conference summary

Macro environment and traffic trends

• Traffic has normalized to industry levels after years of outperformance, attributed to macro headwinds and increased discounting in the sector.

• Focus remains on customer experience and maintaining everyday value, with conservative pricing actions since COVID.

• Breakfast occasions are under pressure as consumers become more selective about dining out, but internal KPIs like ticket times and customer satisfaction remain strong.

• Operational efficiency and bottom-line improvements are prioritized despite industry challenges.

• Current consumer sentiment is marked by uncertainty and inconsistency, with deep discounting more prevalent than in past downturns.

Marketing and brand positioning

• Leveraging a growing opt-in database of seven million customers for targeted demand generation and personalized communication.

• Enhanced data collection enables more efficient and effective marketing, with ongoing test-and-learn initiatives.

• Brand is positioned as a network of neighborhood restaurants, avoiding overt chain branding to preserve local appeal.

• Plans to delay national marketing until reaching a larger scale, following a model similar to Chipotle.

• Low brand awareness (mid-20%) presents ongoing opportunity for organic discovery and word-of-mouth growth.

Geographic performance and expansion

• Florida, representing about 23-24% of the system, is experiencing same-restaurant sales headwinds due to normalization post-COVID and market saturation.

• Continued expansion in Florida is seen as positive, with new trade areas and strong in-state migration supporting growth.

• Some sales transfer (cannibalization) is intentional to relieve pressure on high-volume locations and maintain customer experience.

• Pipeline includes approximately 130 projects, with a balanced approach to legacy, emerging, and new markets.

• New markets like Las Vegas and Boston are targeted for their unique breakfast cultures and unmet needs.

• California is part of long-term plans, but entry will be deliberate and based on market readiness.