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

Market environment and performance

• Traffic trends have normalized, aligning more closely with industry averages, but relative performance remains strong on most indexes.

• Heavy discounting and deep marketing are prevalent in the industry, but the company has chosen not to participate.

• Focus remains on customer experience, everyday value, and conservative pricing actions post-COVID.

• Internal KPIs such as ticket times, customer satisfaction, and waitlist abandonment remain strong.

• The breakfast occasion is currently under pressure as consumers become more discerning about dining out.

Demand generation and marketing strategy

• A database of approximately seven million customers is being leveraged for targeted demand generation.

• Enhanced data collection enables more efficient, personalized communication and marketing.

• The company is in early stages of utilizing this data, with ongoing test-and-learn initiatives.

• Brand positioning emphasizes a network of neighborhood restaurants rather than a chain, with low national brand awareness.

• Plans to maintain this positioning as long as possible, with a potential shift to broader marketing only at much larger scale.

Geographic performance and expansion

• Florida, representing about 23-24% of the system, is experiencing same-restaurant sales headwinds but remains a growth focus.

• Market normalization in Florida follows post-COVID migration trends; continued expansion and market share gains are expected.

• Some sales transfer occurs due to new openings, but this is projected and factored into new restaurant economics.

• Pipeline includes about 130 projects, with new markets like Las Vegas and New England targeted for growth.

• No current presence in California, but it is part of long-term plans; significant green space remains in existing markets.