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Chuy's Holdings Inc (NASDAQ:CHUY)
Q1 2020 Earnings Call
May 21, 2020, 5:00 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good day everyone, and welcome to the Chuy's Holdings First Quarter 2020 Earnings Conference Call. Today's call is being recorded. At this time, all participants have been placed in a listen-only mode and the lines will be open for your questions following the presentation.

On today's call, we have Steve Hislop, President and Chief Executive Officer; and Jon Howie, Vice President and Chief Financial Officer of Chuy's Holdings, Incorporated.

At this time, I'll turn the conference over to Mr. Howie. Please go ahead, sir.

Jon Howie -- Vice President and Chief Financial Officer

Thank you, operator, and good afternoon. By now, everyone should have access to our first quarter 2020 earnings release. If not, it can be found on our website at www.chuys.com in the Investor section.

Before we begin our review of formal remarks, I need to remind everyone that part of our discussions today will include forward-looking statements. These forward-looking statements are not guaranteeing future performance and therefore you should not put undue reliance on them. These statements are also subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. We refer all of you to our recent SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition.

With that out of the way, I'd like to turn the call over to Steve.

Steve Hislop -- President & Chief Executive Officer

Thank you, John. Good afternoon everyone and thank you for joining us on the call today. While we will briefly touch on our quarterly results, our main focus today will be the impact of COVID-19 on our business and the actions that we've taken and will be taken in response.

Beginning with the first quarter results, we had a solid start to 2020 as we continue to build upon the success of our key initiatives, including those surrounding targeted marketing, investments in technology and off-premise sales. The positive sales trajectory was evident in the 3.3% increase in our comparable restaurant sales for the first 10 weeks of the first quarter. However, as you would imagine, we experienced a material slowdown during the last three weeks of March as our company, along with the rest of the country has been impacted by the COVID-19 [Phonetic] pandemic. Since then we have taken several steps to ensure that we can weather the short-term crisis and emerge as a stronger company in the long run.

As many of you know, to comply with both state and local mandates, our team members work tirelessly to transition 92 of our restaurants to an efficient off-premise model. During the stay at home order we have offered our guests a focused menu featuring a number of long-term favorites as well as a convenient family meal and beverage kits, delivered safely to our guests through enhanced takeout and curbside pickup procedures. We have also provided delivery services through our national delivery partner, DoorDash as well as other local delivery services in some markets. I'm pleased to say that our team's hard work has paid off as our off-premise sales have more than tripled from pre-COVID levels and our comparable sales have improved from a negative 67% right after we transition to an off-premise only operating model to the low 50% range just prior to the reopening of our dining rooms in certain locations.

Additionally, many of our guests opted to celebrate Cinco de Mayo and Mother's Day with us earlier in May, resulting in one of the best weekly sales results since onset of the crisis. I believe this is a lasting a testament to the appeal of our made-from-scratch offerings even when consumed at home.

I'm extremely proud of what our team members have accomplished during this unprecedented time. Their commitment and ability to skillfully adapt in the face of COVID-19 crisis has been nothing short of amazing and we're trying to do our part to help ease the impact that this pandemic has had on many of them. To that end, we have been providing support through Redfish Relief Fund that was put in place several years ago to provide assistance to employees facing financial hardship, we are also currently paying the full cost of health insurance for all of our employees including those currently furloughed.

Lastly, it is understatement to say that we're eager to welcome our guests back in our restaurants. With number of states recently announcing new guidelines for business operations, we have begun the process of reopening our dining rooms. We have currently reopened the dining rooms of approximately 70 Chuy's restaurants with varying degrees of capacity. As you can imagine our goal is to reopen each restaurant in an efficient manner and also prioritize the safety and well-being of both our employees and guest. In addition to proper social distancing, we have established procedures for regularly sanitizing our restaurants, and our employees are following local guidelines with regard to glove and mask wearing. Early on, we've encountered a very positive response to reopening from our guests, I can tell you it's been great to see the renewed energy in our restaurants as we welcome back our employees and guests.

In closing, we are fortunate to be facing this current challenges in a solid financial position as John will discuss in a moment. We believe we are equipped to weather this current crisis and remain committed to ensure that our loyal guests can continue enjoy many of our freshly prepared favorable Mexican inspired offerings, either in the safe environment of our dining rooms or in the comfort of their own homes.

With that I will now turn the call over to our CFO, Jon Howie to discuss financial steps we have taken and will be taken in the near future.

Jon Howie -- Vice President and Chief Financial Officer

Thanks, Steve. The financial steps we've taken thus far have primarily been focused on managing our liquidity to ensure that our business is well funded for the long term. As of May 17, we had approximately $27 million in cash, which included the previously announced credit facility drawdown. In addition, we just amended our revolving credit facility to extend its maturity to April 30, 2022 and provide additional financial flexibility during the COVID-19 pandemic by relaxing financial covenants through the new maturity date.

To give you some additional color on our liquidity, as of May 17, we reduced our weekly cash burn rate to approximately $200,000 as compared to $500,000 a week during April, mainly driven by the increase in our off-premise business and cost savings initiatives we announced in recent weeks. Our burn rate assumes current sales levels, spending, normalized rent, as well as the delay or cancellation of non-essential planned capital expenditures, including new restaurant openings during the remainder of 2020. That being said, we have temporarily suspended our rent payments on operating leases and we are continuing to work with our landlords to negotiate rent concessions, abatements and deferral. We are also expecting approximately $3 million in tax refunds in conjunction with the Cares Act as a result of an administrative correction of the depreciation recovery period for qualified improvement property as well as the reinstatement of the net operating loss carry back period.

Lastly, on May 5, we filed a shelf registration statement for up to $100 million to allow us to access the capital markets and further enhance our financial position, if necessary during this uncertain times. As a reminder, given the ongoing uncertainty around the magnitude and duration of the COVID-19 pandemic, we have withdrawn our previously issued guidance for fiscal year 2020.

In summary, we believe we have the financial flexibility needed to weather this crisis, and we look forward to welcoming back our furloughed employees as we are slowly returning to normal restaurant operations.

Steve Hislop -- President & Chief Executive Officer

Thanks, Jon. We are pleased with how our company has been able to adapt during this turbulent times and evolve our business into an off-premise business only, all while keeping the safety and well-being of our guests and employees foremost in our minds, while still serving our Chuy's fans the food they have come to crave and expect. I can't say enough about the dedication and hard work our entire Chuy's family as shown by being able to rise to the challenges this pandemic has cause on our industry as well as each of our lives. Thank you to all of you.

With that, we are happy to answer any questions. Thank you.

Questions and Answers:

Operator

Thank you. We will now be conducting a question-and-answer session. [Operator Instructions] Our first question will come from the line of Nick Setyan of Wedbush. Please proceed with your question.

Nick Setyan -- Wedbush Securities Inc. -- Analyst

Thank you. It's great to see the accelerating sales trends week to week. A quick clarification, of the nine units that were closed out, any of those units now open?

Steve Hislop -- President & Chief Executive Officer

No, they're not. We're going to continue to get all the ones that have been in doing to go for the last two months, once we get those opened, we'll look at reopening, looking at the feasibility of those restaurants.

Nick Setyan -- Wedbush Securities Inc. -- Analyst

Got it. And could you maybe talk about your experience as these dining rooms are opening relative to the capacity constraints. Are you seeing sort of the Friday night, Saturday night crowds add capacity? How the shoulder periods are doing weekdays, lunch versus dinner, anything would be very helpful.

Steve Hislop -- President & Chief Executive Officer

Yeah, again it's so early, basically maybe eight to 10 days into this in a lot of the markets. One thing that I'm really excited is how fast our guys mobilized to get in such a short time. About 70 [Phonetic] of these restaurants opened in time, but we haven't -- it is too early to say, give you a whole bunch of color, because a lot of the restaurants and like example in Austin is 25%, in Tennessee it's 50% and it's going by the local -- local laws in the different markets, but it would be too early, really to even to comment on that.

Nick Setyan -- Wedbush Securities Inc. -- Analyst

Okay, fair enough. And then Jon, of the $48.5K in terms of weekly sales for the week ending 05/17, would it be possible for you to tell us what portion of that is dine-in versus off-premise well?

Jon Howie -- Vice President and Chief Financial Officer

Well, I think what we have there that is one -- that is mainly just off-premise because as of -- if you look through -- I think that's all off-premise.

Steve Hislop -- President & Chief Executive Officer

No, no. A little bit we a couple in that.

Jon Howie -- Vice President and Chief Financial Officer

We've got a couple in that, but for the most part, I would say, 90% of that is off-premise.

Steve Hislop -- President & Chief Executive Officer

Yeah, I agree.

Nick Setyan -- Wedbush Securities Inc. -- Analyst

Okay, thank you very much.

Operator

Our next question comes from the line of Chris O'Cull with Stifel. Please proceed with your question.

Chris O'Cull -- Stifel -- Analyst

Thanks. Thanks for taking the question. Jon, I know the company had to furlough a large portion of its early workforce during period when dine-in or dining rooms are closed, but now that dining rooms are reopening and you are rehiring people, what kind of flow through rate should we expect from the reopened dining room sales?

Jon Howie -- Vice President and Chief Financial Officer

Well, Chris again, I think it's too early because there's a lot of -- there's a lot of moving pieces until we can get some trends because as you know when we turned it into to go only kind of operation, we cut a lot of services, we turned off all the lights in the dining rooms. We did a lot of things, right. So now it's really trying to the dial-in the right amount of labor for the front of the house that would bring in percent capacity or 50% capacity, and then slowly turn on those services. So at this point I really -- I understand your question, but it's really hard to give you an idea of what that is yet until we can get some better trends.

Steve Hislop -- President & Chief Executive Officer

Yeah, and as we're moving just in the 25/50 Chris, we're bring them back some of the furloughed that would be coming back as you move down the road you will have some training impact on some labor as we move forward, because, specifically in the back of the house, in Texas this -- they kept construction a lot of our kitchen fellows are working in construction right now. So we will have some start-up on some employee hiring as we move forward a little bit.

Chris O'Cull -- Stifel -- Analyst

Okay. And then can you, Jon, can you guys describe the margin for takeout sales compared to dine-in sales, how do they compare?

Jon Howie -- Vice President and Chief Financial Officer

As far as -- as far as the margin they are almost comparable now because what we've done is, as far as the delivery, as well we've increased the prices on those like we said we are going to for the most part. So that it would be kind of cash neutral going out the back door or margin neutral. And so for the most part we've done that on the delivery. On the pickup, what we're finding is that it's a little higher check average given some of our kits and then also our margarita kits as well. So that's not -- it's not taken up all the 18%, but we are seeing in the high single digits as far as bar mix, which we've been very pleased about. And then for the stores that we have opened up that bar mix is actually coming back quite nicely. [Indecipherable] the margins are a little less, but I would say probably not more than 100 basis points less.

Chris O'Cull -- Stifel -- Analyst

Great, thanks.

Steve Hislop -- President & Chief Executive Officer

You are welcome.

Operator

Our next question will come from the line of Andrew Strelzik of BMO Capital Markets. Please go ahead.

Andrew Strelzik -- BMO Capital Markets -- Analyst

Hey, good afternoon. My first question, can you talk a little bit about what the customer experience is like in the stores right now were you reopened the dining room, some of the steps that you've taken and how are you managing the waits [Phonetic]?

Steve Hislop -- President & Chief Executive Officer

Managing waits [Phonetic] actually, I will start there first of all. Right now we have everybody usually waiting, if we're on a wait, they would be waiting in their cars because obviously the social distancing, our vestibules wouldn't allow anything else. Believe it or not, they are pretty much self managing that themselves to be straight up, an honest with you, as consumers and checking the wait And then they are going back up to the cars.

But as far as operations are going, again we're open in 25%, the standards that we've always had are kept. Obviously the safety is the number one thing, making sure we're sanitizing everything, making sure we have our mask, and glove, to making sure we have a sanitizing solutions in all the areas that are expected for us to have them, but we've done very, very well with that. Part of the things that allowing us to do it very, very well, especially on the ramp up as we continue to do is we running a very slim down menu at this current time, which is very similar to the menu that we use during all our to go and delivery services. So that's what's in our restaurants currently. And so our execution is very, very good. We're pretty excited about the operations and how well they have been able to execute and we're using technology to make sure we're working on the waits and the cloud times just as we're going. But I'm very, very pleased with the execution inside the four walls, just as I was really pleased with the execution and the increase in our to go volumes throughout the last eight weeks.

Andrew Strelzik -- BMO Capital Markets -- Analyst

Okay, great, that's helpful. And then as over time you've grown into newer states versus kind of your home base, can you talk about if there is any regional differences will highlight either in the legacy markets or the newer markets. How kind of sales have varied across the system?

Jon Howie -- Vice President and Chief Financial Officer

Obviously, just like when we're open, I mean the Texas obviously have the stronger AUVs, but really no significant trend. [Speech Overlap]

Steve Hislop -- President & Chief Executive Officer

Trends have a similar -- the ones that are and then Nashville is very strong also a very similar -- has been in all categories before and after this thing. So I think it's the basket like we've expected them to and they have traditionally in the past.

Andrew Strelzik -- BMO Capital Markets -- Analyst

Okay. And then my last one, how sticky do you think the off-premise business will be? And is there anything you're thinking of doing in the store more operationally to support what could be maybe a higher off-premise mix over time?

Steve Hislop -- President & Chief Executive Officer

Sure. I mean, I think if we go back to even a year ago, while we are on this call probably we talked about off-premise, we were in that 14% to 15% to go -- to go premise anyway, and we were looking at a big initiative throughout the rest of the year and soon also with the catering last year. Now we're looking at to go areas in all our real estate, all our stores to enhance those. I think they're going to definitely be enhanced as we move forward with what's happened with this pandemic. And I don't think it's all going to go away. I don't expect it to be 45/50, but I definitely expect it to be well north of where we were, which is in that 14% range. So we're going to continue with the thought process of, obviously we've learned a ton of stuff to just to go only on how to really set it up, and how to stage it, and we're going to continue that within the parking lot and in our store level operations also, but it's here to stay. As the industry is looking right now, convenience was always a big plus and quick casual. Convenience is going to be a big plus, it's going to be a major uptick and just casual also. Convenience of the guests whether it be how they do to go, how we do delivery, but also how we do the checks, and do we have handhelds and all that stuff is going to become more and more important as we move down the road.

Andrew Strelzik -- BMO Capital Markets -- Analyst

Great. Thank you very much.

Steve Hislop -- President & Chief Executive Officer

You are welcome.

Operator

Our next question comes from the line of David Tarantino of Baird. Please proceed with your questions.

David Tarantino -- Robert W. Baird -- Analyst

Hi, good afternoon. I hope you both are doing well. I had a couple of questions, the first one relates to your plans to drive traffic as the dining room reopen. I guess, can you talk a little bit about kind of what the game [Phonetic] plan or what you're doing to try to drive awareness and traffic as things reopen?

Steve Hislop -- President & Chief Executive Officer

Sure. The basic thing -- the one thing that's great for us is we are very -- always been a strong local store marketing company on how we do things from a grassroots emphasis. And obviously that's what we've been doing the last two months just doing to go and you're going to see us continue that probably through the rest of this quarter into the third, as we find out how big our areas are going to be allowed to get inside our dining rooms, whether it's 50%, do they go to a 75%. And we're also doing organic as far as social media and talking about our special days, whether it be Cinco or we have Tequila Day coming up here in the next month and those type of things. But as we get back and you'll see us go back in, probably if things -- the trends go similar you'll see us get back into our the marketing plan that we executed more like 2019 and you'll see us definitely focused on social, digital, as we were in all 2019 and that was having a great results for us, I believe. And we'll do that, you will see us maybe change some messages a tiny bit on some of our postings and some of our -- our digital and social spend and you'll see us definitely talking about the convenience of what we do, obviously to-go area in the convenience side you'll talk -- you'll definitely hear us talk about value of in our menu, which is going to be so important as you move through with all of the things that's happened to our communities over the last two months. And you're also going to see us talk a lot about safety and then how we take care of our employees and how we take care of our guests. But you'll see probably in the fourth quarter very similar to the plans that we executed in all 2019.

David Tarantino -- Robert W. Baird -- Analyst

Got it. And then I guess the second question I have is a bit more qualitative and it relates to some of the actions you've taken to reduce costs, which it's seem necessary at this point, but and furloughing a lot of employees, I'm just wondering what your thoughts are on the impacts that will have either on the culture of the company or your ability to pull them back in one once you're able to, and I guess overall, how much that disruption might affect the outlook in the next year or so?

Jon Howie -- Vice President and Chief Financial Officer

Yeah. One thing and you know about us a little bit, we are in constant contact with all our hourly, furloughed and specifically, all that anybody in management and specifically home office because we're talking with them, we've like -- Jon mentioned to you earlier that we've had pay and benefits for all those people throughout this time, but we are in constant contact with them talking about it. And I think we've done and communicated the right things and what our role is to be safe and cautious and to make sure we come out of this at the end of it better than when we even went into it and offer them and our group and our company a long-term strategy for success, not only for the company, but for them personally and professionally also. So we've been in constant contact, we're excited about how we dealt with this in a very personal way with all our employees and we're getting most of our ROEs. As we said, we just started on the ROEs two weeks ago, bringing them back, we're pretty pleased how they've reacted and they have all come back and the same thing is in the home office. We haven't really started bringing folks back from a home office perspective yet, we'll continue to look at that and see how the sales continue to ramp up and the level of work, but we're looking forward to getting our folks back working and just add-on and constantly evolve the culture as we move forward.

David Tarantino -- Robert W. Baird -- Analyst

Great. Thanks for that. And then the last question I had is whether the sequence of events or the factors that you're looking at that would dictate when you would start putting capital to work and growing units again, I guess what should we be looking for it to gauge when you might be ready to resume growth?

Steve Hislop -- President & Chief Executive Officer

You know as it is again, I'd like to see -- I wish I had a real, real crystal ball that would tell me, everything that's going to happen and no one's is going to go backwards or any of that type of stuff. But as we move forward. Obviously, I think we are comfortable with our cash position, as Jon mentioned to your earlier weather with our burn rate and so forth. But as we go through, you'll probably see us where we have a couple of stores that were pretty close to being complete end to be opened in 2000 [Phonetic] that we put a halt to. You'll see us probably open those two to three possibly four depending on where it is in 2021 if everything goes as planned and you probably see us the following year it will be very, very similar to that over the next two years, is what I'd say.

David Tarantino -- Robert W. Baird -- Analyst

Great. Very helpful, thank you.

Steve Hislop -- President & Chief Executive Officer

Yeah, thanks.

Operator

[Operator Instructions] Our next question comes from the line of Andy Barish of Jefferies. Please proceed with your questions.

Andy Barish -- Jefferies & Co. -- Analyst

Hey guys, good to hear your voice. Just a couple of -- a couple of quick follow-on conversation -- follow up conversations on the -- to go and delivery mix, has there been any significant change in the last eight weeks or so with the ramp up of off-premise?

Jon Howie -- Vice President and Chief Financial Officer

Yeah, I think what we've seen which we've been trying as a goal is to increase our digital sales and what we've seen is our digital sales as far exceeded, obviously delivery and the call in.

Steve Hislop -- President & Chief Executive Officer

And it didn't start that way. So that was -- yeah.

Jon Howie -- Vice President and Chief Financial Officer

So I mean it's surpassed that. So our digital sales are probably about 45% right now. Our delivery, digital, our delivery is still around 20%. So it stayed -- it's increased, but it stay as a percentage of total off-premise has stayed somewhat consistent, at about 20%.

Andy Barish -- Jefferies & Co. -- Analyst

Okay. And then on the on the mix of our off-premise, you gave us the alcohol number how much are other items like the family -- family meals and things like that, just that kind of get a sense of what, what the core menu is driving right now?

Jon Howie -- Vice President and Chief Financial Officer

I don't -- I don't have that mix report with the Andy, but I would [Phonetic] tell you that it's, it's pretty strong in those family kit.

Steve Hislop -- President & Chief Executive Officer

Yeah. Family kits.

Jon Howie -- Vice President and Chief Financial Officer

I would beg to say it's, you know, in the, in the 20% to 30%.

Steve Hislop -- President & Chief Executive Officer

Yeah, it's still not. Obviously the majority, obviously the core menu is still driving it. But those family meals and the convenience of those are doing very, very well, and like the margarita kits has done very, very well.

Jon Howie -- Vice President and Chief Financial Officer

I can follow up with these, Andy on that.

Andy Barish -- Jefferies & Co. -- Analyst

Okay, no problem. And then do you have a sense you can share with us on the next -- the next 20 stores or so as you go, both in the current openings to get back up to 92?

Steve Hislop -- President & Chief Executive Officer

Yeah, I will tell you by the end of this month, we'll probably be opening in all of them except five, that I still have to be determined on the last five based on the local municipalities.

Jon Howie -- Vice President and Chief Financial Officer

That's Colorado.

Steve Hislop -- President & Chief Executive Officer

Yeah, but pretty much by the end of this month.

Andy Barish -- Jefferies & Co. -- Analyst

Okay. Thank you very much.

Steve Hislop -- President & Chief Executive Officer

Thanks Andy.

Operator

Our next question will come from the line of Brian Vaccaro of Raymond James. Please proceed with your question.

Brian M. Vaccaro -- Raymond James -- Analyst

Thanks and good evening. Wanted to circle back to the family meal kits, and personally big fan, but I'm curious if you think those have attracted a new customer or occasion even in some ways during this period. And as you gradually reopen the dining rooms are you planning on keeping those on the menu?

Steve Hislop -- President & Chief Executive Officer

Absolutely, absolutely. And we're going to keep the alcohol kits on the menu to because I do believe that's the new -- the new way of the markets right now. So we're going to keep all of those and have those as part of our to go and delivery options except that not the alcohol obviously that has to be a pick up, but yeah, it's definitely going to be part as we move forward. And also as far as a new customer, maybe a little bit, but again time will bear that out. One thing that it is, is we definitely in this value conscious world that we're obviously and now and how it's going to continue definitely throughout the rest of this year. There is a little -- there is a little, not a huge discount, but they're very, very well priced very, very well priced in all areas. So, but again my plan is to keep that price point on all of those things as we move forward through the rest of the year. Really looking at it at the time frame of our February price increase that we usually do every year. So we're going to be a little bit of -- more value conscious as we move forward through the rest of this year.

Brian M. Vaccaro -- Raymond James -- Analyst

All right. That's great. And then I know it's very early, but I wanted to circle back and ask about the recent sales trends, I guess, down 45% in the week ended 05/17, could you break that down or help us frame kind of what the units that reopen the dining room looked like versus those that were still off-premise only? And also I wanted to clarify, were those 50 units that you mentioned that were partially reopened, where they reopened for the entire week all seven days?

Steve Hislop -- President & Chief Executive Officer

No. So if you're looking at that Brian probably the average units, if you take the total that started the week and ended the week, the total units open were about 35 stores and I do have that mix that Nick asked earlier, So of that 48,495 or 500, about 34% of that figure was dine-in sales. So that's anomaly, but it's pretty close to 35 average stores in 34% dine-in.

Brian M. Vaccaro -- Raymond James -- Analyst

Okay. [Speech Overlap].

Jon Howie -- Vice President and Chief Financial Officer

You don't open everything up on one day, they have all been at different days of the week. And they've all been kind of -- so a couple of them have an open a couple days a week. One was open the full week. So it's all shuffled in a little bit.

Brian M. Vaccaro -- Raymond James -- Analyst

Okay, that's great. And then just last one gentlemen, to circle back on the weekly burn rate, I just wanted to clarify that, $200,000 that assume you are paying full rent, but currently you're not paying rent? If I heard that correctly. And then also, what is it embedded in terms of a G&A run rate?

Jon Howie -- Vice President and Chief Financial Officer

Well, right now it's basically our cash G&A burn rate not a GAAP, but that G&A burn rate it runs right around $1.1 million to $1.2 million right now, period. So a four week period. So let me see it's --.

Brian M. Vaccaro -- Raymond James -- Analyst

I was interpreting your rent comments correctly, it's fully burdened with rent.

Jon Howie -- Vice President and Chief Financial Officer

Yeah, it is normalized rent because as we obviously defer some of those payments we will have some extra payments as we go in the future into 2021 where some we've negotiated deferring those payments into '21, but on a normalized rent basis that's what, that's based on.

Brian M. Vaccaro -- Raymond James -- Analyst

Perfect. Thank you very much.

Operator

[Operator Instructions] Our next question comes from the line of Todd Brooks of C.L. King & Associates. Please proceed with your questions.

Todd Brooks -- C.L. King & Associates -- Analyst

Hey good evening everyone. I hope you are well.

Steve Hislop -- President & Chief Executive Officer

Thank you.

Todd Brooks -- C.L. King & Associates -- Analyst

Couple of questions -- couple of questions, one on the, the whole of not paying rent and negotiating with the landlords, I guess where do we stand on how much of the base you've reworked maybe with landlords and what has been the top ask as it's been for abatement or has it been for more of a change to a percentage sales type of model for the lease. What is your Number 1 goal when you're talking to these landlords?

Steve Hislop -- President & Chief Executive Officer

It's really all of them. Obviously, we talked about everything under the sun on all that. Our priorities at the beginning was an April, May, June abatement and I'd be honest we are pretty pleased on at least partial abatements on -- on a full abatements, partial abatements about 15% of them. So we are pleased with that. Then number two priority was really to defer them and that's probably a good number of those where you are starting to pay back some a little bit in '21, a lot of them in '22 and beyond. So that's been it and there has been a couple of that, we definitely have talked about percentage rent and so forth on. But overall, it's been a little bit of all. But the main two -- the main one is deferment to later years.

Todd Brooks -- C.L. King & Associates -- Analyst

Okay, great. And the second question, just coming back to capacity. I know with Texas being 25%, I guess early openings and just what you've seen traffic wise, what do you think you're missing with 25% capacity. And do you think that's going to a 50% capacity in the Texas market will allow you to capture all the demand that you're seeing at the stores in that market now?

Steve Hislop -- President & Chief Executive Officer

I don't think 50% you're going to capture all the demand, but at 25% you're not capturing hardly any. What you're doing there is really getting ready to get to 50% because [Indecipherable] restaurants at 25% long-term company wide, not saying still specific, companywide is really might be a little bit of a cash drain on you when you're trying to do that. So our goal is always to get ready to be set up, test some stores at 25% to make sure that we are ready to go when it actually goes 50%. An example in Texas is 50% is going to go 50% tomorrow. So that's why we have a few that we can opened up and got ready for, brought some people back, give a little extra training on the menu to really get up, but the key for us was at 50% we feel we can have some good sales that we can have some leverage with.

Jon Howie -- Vice President and Chief Financial Officer

Then the other thing Todd to remember one of our advantages has always been our patios. Of extreme advantage when it's raining, but during this time for the most part, most of these municipalities don't include that in your capacity limitations. They just want social distancing out there. So we've been able to spread those tables up and fill our patios up. Beyond those capacity limit. So that's been helpful in a lot of areas to help combat the 25% or 50%.

Todd Brooks -- C.L. King & Associates -- Analyst

Okay, great. Thank you both.

Operator

Our next question comes from the line of Andy Barish of Jefferies. Please proceed with your questions.

Andy Barish -- Jefferies & Co. -- Analyst

Hey guys, just circling back, I know it's early, and this is still evolving, but the operating chops you guys have shown during this process, are there learnings kind of coming out of the last eight weeks, you know on staffing and efficiencies and running, running obviously a very, very lean back of the house and front of the house that may be can apply going forward with restarts and things like that?

Steve Hislop -- President & Chief Executive Officer

Absolutely, Andy. We've obviously became very, very quick, very good at being able to do to go making the proper adjustments to our menu mix and our menu itself to where we could execute to go in these basically kits on a quick basis. We're going to take all those learnings as we go back into our reopening and how our menu might evolve through the rest of this year, but specifically more important into next year and as also our to go service levels and also service steps also will be amended as we move forward and all that stuff. And obviously part of that is, you're really looking at all your P&L, our guys are really good at looking cash right now. They are really good at looking at cash. So obviously there's is going to be a best practices that will start and really we're talking about kilowatt hours and all that type of stuff now so. It's is a lot of other things, but we are expecting to come out of this better than we went into it.

Andy Barish -- Jefferies & Co. -- Analyst

Thank you.

Steve Hislop -- President & Chief Executive Officer

You're welcome.

Operator

There are no further questions at this time. I will now hand the call back over to management for any closing remarks.

Steve Hislop -- President & Chief Executive Officer

Okay, guys. I hope everybody safe out there, hope everybody is doing well. Thanks for asking about us, we're both doing well and our group is doing pretty, pretty well. But thank you so much, Jon and I appreciate your continued interest in Chuy's and we will always be available to answer any and all questions again thank you and have a good evening.

Operator

[Operator Closing Remarks]

Duration: 37 minutes

Call participants:

Jon Howie -- Vice President and Chief Financial Officer

Steve Hislop -- President & Chief Executive Officer

Nick Setyan -- Wedbush Securities Inc. -- Analyst

Chris O'Cull -- Stifel -- Analyst

Andrew Strelzik -- BMO Capital Markets -- Analyst

David Tarantino -- Robert W. Baird -- Analyst

Andy Barish -- Jefferies & Co. -- Analyst

Brian M. Vaccaro -- Raymond James -- Analyst

Todd Brooks -- C.L. King & Associates -- Analyst

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