Company: FWRG
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001789940-25-000041
Chunk: 41

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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 by the leverage associated with menu price increases.

The increase in labor and other related expenses during the thirteen weeks ended March 30, 2025 as compared to the same period in the prior year was primarily due to (i) the increase in the number of restaurants and related headcount, (ii) wage increases and (iii) increased health insurance costs.

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 ENDED(in thousands)MARCH 30, 2025MARCH 31, 2024ChangeOther restaurant operating expenses $44,259 $36,792 20.3 %As a percentage of restaurant sales15.8 %15.4 %0.4 %

As a percentage of restaurant sales, the increase in other restaurant operating expenses for the thirteen weeks ended March 30, 2025 as compared to the same period in the prior year was primarily due to (i) utilities expenses, (ii) operating supply costs, in particular, to-go supplies, (iii) repairs and maintenance, (iv) third-party delivery fees and (v) restaurant-level marketing costs.

The increase in other restaurant operating expenses during the thirteen weeks ended March 30, 2025 as compared to the same period in the prior year primarily due to the increase in the number of restaurants driving increases expenses including (i) $2.5 million utilities and repair and maintenance expenses, (ii)  $2.2 million operating supplies, (iii) $1.2 million third-party delivery fees, (iv) $0.9 million credit card fees, (v) $0.4 million insurance expense and (vi) $0.3 million restaurant marketing.

Occupancy Expenses

Occupancy expenses primarily consist of rent expense, property insurance, common area expenses and property taxes. 

THIRTEEN WEEKS ENDED(in thousands)MARCH 30, 2025MARCH 31, 2024ChangeOccupancy expenses$23,149 $19,168 20.8 %As a percentage of restaurant sales8.3 %8.0 %0.3 %

As a percentage of restaurant sales, the increase in occupancy expenses for the thirteen weeks ended March