Saturday, August 15, 2009

WEST annual meeting notes

Q: Has there been an unfavorable shift in the restaurant industry in terms of gross margins going forward?

SB: We don’t target the gross margin. Worried about best product. Easy to increase gross margin – reduce beef, cheese, etc. This can have long-term negative impact. Margins are much more favorable but traffic is down. Focus on the customer first. I’d rather sell more and have lower margins. Trade average check size for traffic.