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Good Times Restaurants Inc. [NASDAQ: GTIM] announced Wednesday that same-restaurant sales for its Good Times Burgers & Frozen Custard franchise chain dropped by 0.5 percent in its fiscal first quarter of 2017, which ended December 27, 2016. However, its Bad Daddy's franchise chain rose by 2.0 percent at the end of the quarter. That was over the strong first quarter of last year's 6.5 percent rise.
"We saw a sequential improvement at Good Times from our fourth quarter of fiscal 2016, and given that we were comparing to high same store sales increases at both brands during the prior year, we are happy with our results during the first quarter," said Good Times' president and chief executive officer Boyd Hoback.
In 2016 Coloradans voted for a gradual hike in minimum wage. Minimum wage went from $8.31 to $9.30 per hour on January 1, 2017. It will then rise by 90 cents per year until it reaches $12 an hour by 2020.
"We plan on small price increases during our second quarter to offset the increased Colorado minimum wage, and we are on track with the implementation of new prep tables at Good Times," comment Hoback. "The competitive environment remains heavily weighted toward value pricing, and our response is to up the ante on quality, price choice and innovation at both brands, with a number of products in development and test."
Good Times owns, operates and franchises a chain of 20 Bad Daddy's Burger Bar Restaurants and 37 Good Times restaurants, which are primarily located in Colorado. The franchising firm expects to open nine to eleven Bad Daddy's Burger Bar restaurants and one new Good Times in fiscal 2017. CEO Hoback anticipates that the Midwest and Southeast markets will be a focus for growth in fiscal 2018.