“We plan for this methodology to also enhance how we train and open our Shacks and reduce the overall drag on our P&L from new Shack openings as we aim to reach optimal profitability at a much faster pace than today's performance.”

In context

“s and our Shacks up for success in the coming years with improvements on deployment, refinements to the order journey, and more scalable and consistent processes. As we scale, we have a greater diversity of formats from larger drive-throughs to streamlined food courts and a variation in menu and channel mix across our restaurants on top of efficiencies like Kiosk, it’s the right time to refine and evolve our labor model as well as a broader staffing and deployment standards. This work is rooted in, in time, in motion studies and various variables that will help us to staff to best optimize the unique needs of each of our Shacks. This will give our operators much improved tools and we will update you as we test and roll this new staffing system out to the Shacks this quarter and into 2024. We plan for this methodology to also enhance how we train and open our Shacks and reduce the overall drag on our P&L from new Shack openings as we aim to reach optimal profitability at a much faster pace than today’s performance. Other operating expenses were $37.3 million, or 14.1% of Shack sales down 120 basis points from the third quarter of 2022. Our strategy to reduce R&M expenditures has lowered this expense per store week by $300 year-over-year. We also benefited from lower delivery commission expenses per store week as more guests returned to in-check dining but we’re anticipating that delivery sales will pick up in the fourth quarter in line with recent historical patterns. Occupancy and related expenses were $20.3 million or 7.7% of Shack sales down 20 basis points from last year’s levels. All in, we are very pleased with the level of margin improvement we delivered in the quarter and we continue to build back our profitability, which is vital for our long-term growth. G&A was $30.9 million, excluding $2”