Company: FWRG
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001789940-25-000072
Chunk: 42

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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 (i) the increase in the number of restaurants and related headcount, (ii) wage increases and (iii) increased health insurance costs.

24

Other Restaurant Operating Expenses

Other restaurant operating expenses consist of marketing and advertising expenses, utilities, insurance and other operating variable expenses incidental to operating company-owned restaurants, such as operating supplies (including paper products, menus and to-go supplies), credit card fees, repairs and maintenance, and third-party delivery services fees.

THIRTEEN WEEKS ENDEDTWENTY-SIX WEEKS ENDED(in thousands)JUNE 29, 2025JUNE 30, 2024ChangeJUNE 29, 2025JUNE 30, 2024ChangeOther restaurant operating expenses $46,603 $37,549 24.1 %$90,862 $74,341 22.2 %As a percentage of restaurant sales15.3 %14.7 %0.6 %15.5 %15.0 %0.5 %

As a percentage of restaurant sales, the increase in other restaurant operating expenses for the thirteen and twenty-six weeks ended June 29, 2025 as compared to the same periods in the prior year was primarily due to (i) utilities expenses, (ii) operating supply costs, in particular, to-go supplies and (iii) third-party delivery fees.

The increase in other restaurant operating expenses during the thirteen weeks ended June 29, 2025 as compared to the same period in the prior year was primarily due to the increase in the number of restaurants driving increased expenses including (i) $3.1 million in operating supplies, (ii)  $2.2 million related to utilities and repair and maintenance expenses, (iii) $2.0 million in third-party delivery fees, (iv) $0.7 million in credit card fees and (v) $0.4 million in insurance expenses.

The increase in other restaurant operating expenses during the twenty-six weeks ended June 29, 2025 as compared to the same period in the prior year was primarily due to the increase in the number of restaurants driving increased expenses including (i) $5.3 million in operating supplies, (ii)  $4.6 million related to utilities and repair and maintenance expenses, (iii) $3.1 million in third-party delivery fees, (iv) $1.6 million in credit card fees, (v) $0.8 million in