And I think we'll be learning more about that as we get further into quarter three. Typically, we start having conversations with our suppliers and things like that toward the end of the quarter heading into the year. So I think we'll get more clarity on that. I'm sure they would say, when we -- they can get some clarity, right, on where prices are going and cost of doing business and labor and things like that, that they're being impacted by right now.
So I think it's going to be tough to know that for a bit. And then potentially, as you head into , there's just all the normal commodity inflation inputs, right, as far as supplies of cattle, flatter rates, things like that, that could cause some noise in So we're kind of teeing up to expect some commodity inflation for a bit.
And given that situation, how are you thinking about menu pricing. I know Gerry commented on potentially some more pricing maybe sometime in October. Can you give us an update on what pricing level you're running in the third quarter and in the fourth quarter? And what you may expect to take in the back end of the year? Yes, happy to do that. So pricing today, we had about 2. That's made up of that 1. So we didn't get the benefit of that the whole quarter, we will for the rest of the year.
And then you had about 1. But for the most part, it was -- most of it happened in October. So that's about when that roll-off will occur on that. So quarter three looks like it would come in at about 2. And as Gerry mentioned, we're going to be having those conversations with our operators to see where they're -- how they're feeling things, how the consumer feels to them.
And as usual, we've always been a little a little slower to take pricing when it comes to commodity inflation because of the temporariness of that, the cycle that, that goes through, a little more likely to take pricing to help on labor as it's more permanent. That philosophy has not changed. That's something we still very much believe in. So that's the approach we'll be taking as we have those conversations with them. But I can tell you just from -- it certainly seems like we'll take some pricing in October.
The levels will be -- remain to be seen, but it feels like there is some pricing there to be taken. And I would just say that as we gather with all of our market partners and MPs and look at their local areas and what they might need in different parts of the country, but we will still be rather conservative, I would assume.
But we're also looking at some menu items that might help. We had a lot of success with a five-ounce -- and a smaller portion that kept our value side. We do -- we're very excited that our guest is going for the high dollar right now a little bit, but we also want to make sure that we keep that value side there and keep it very -- part of who we are.
But we obviously will listen to our operators and see what they need so that they can get the margins that would be balanced and responsible. Good afternoon. Tonya, I just want to come back to the discussion about margins and the outlook for the second half of the year. I just want to clarify one comment.
Was that a comment about the full year? Or was that a comment about the back half specifically? Kind of both. Quarter one came in a higher percentage. So I think both for the back half and the full year, we still feel confident being in that range. Imports a lot will depend on sales trends, the mix of sales, what pricing we take and things like that, but we can see a scenario where we can still hit that target. And then on labor, I wanted to ask about -- I think you mentioned that hours were up 0.
So I guess, how are you able to accomplish that labor model with such big traffic growth over the last two years. And is that, I guess, a function that maybe you're understaffed and need to catch up?
And -- or is it some efficiencies that you've gained over the past couple of years? I mean it would definitely imply that there were some staffing issues throughout the quarter. But I'll tell you, when you look at the hours broken -- the growth in hours broken down by month, we saw that trend up throughout the quarter. So coming in after our conversation on quarter one in April and things like that, we were putting a lot of initiatives in place, things like that to help on the staffing side with -- for folks.
And I think what we see in the numbers is that, that's working and staffing is becoming a bit easier with that growth in hours getting a little bit bigger in June. So that was certainly good to see from that perspective because you're absolutely right, David. You would expect at that traffic level to be a bit -- to have that growth in hours be a bit higher. You also have to keep in mind, you do have that To-Go -- higher To-Go business, which typically is going to be a bit less on the labor side because you don't have the servers, the front-of-house labor on that piece.
So that does kind of mitigate that a little bit. Great, thanks for the question. Tonya and Gerry, the first one, I just wanted to ask a bit more on the margins as it relates to the to the other opex line. Tonya, you spoke to it to some extent. But just wondering what else in the quarter, any other commentary you can add there against those sales volumes are just the cost of everything up? Is insurance if it runs through their equipment or gloves, other supplies. Were you just seeing a lot of inflation through that line dollar-wise as well?
Is that a fair characterization? Or anything else sort of onetime in nature? Yes, Dennis, you definitely are on point. I mean, if you look at other operating costs as a percentage of sales versus , it was flat at So that would imply any check benefit was offset by higher cost more usage because of the To-Go piece of the business, so more To-Go supplies. You're still looking at PPE costs. Insurance absolutely runs through those lines and credit card charges, things like that as you see more credit card usage and all of those things.
So definitely seeing a bit of inflation on that line, which offsets that -- any of that check benefit on a two-year stack. And then one more, I think you just spoke to it to some extent, but just wanted to clarify, as far as hours from here. I guess it feels generally like you're in a pretty good spot hours relative to traffic.
And I guess if I caught that loosely correctly, given where you are in June, dine-in wise, not a significant amount of incremental labor hours from where you're at now. Is that a fair characterization or summary of how you just described it Tonya? I mean I guess what I -- the point I was making was growth in hours became higher throughout the quarter. And I think that's a piece of dining room sales growing.
So you began to see more hours used in the restaurant. And so to see that improvement, that's good because we like to see that staffing level increase and hours in the restaurant increase from the levels we were in. So that's a piece of it, for sure. And I would just say that we added 5, employees in the second quarter.
So we made up a lot of progress on getting fully staffed. So that was a big win. We had a great national hiring day, which really brought us a lot of folks. So as we were training them and bringing them back and our average weekly sales continued to climb. I think we're positioning ourselves for the back half of the year as we fought staffing in the first quarter, I think we've had a lot of success in the second quarter and a lot of momentum going into the third quarter.
Unknown is how school goes back and does it change our trend? It typically does. I don't know that it will this year. So we're anxious to see how this couple of months goes as kids get back to school and are we really going to get back some normal, but I -- we made a lot of gains on the success of getting staffed across the country to be able to continue to provide a great service to our guests. So I appreciate all the commentary on the staffing. Just a follow-up there. Are you still looking to increase staffing at these sales levels?
And then just with respect to training and overtime at normalized levels? Or are you seeing any elevation there just as you bring on more people. Yes, we're going to continue to get staffed. We have a great team. We call it ninja staffing. So we're really -- we know which stores need help specifically. And we're really focused on that as a team. Our regional market partners, our managing partners at the store level and our support center here.
We have a very dynamic team that is focused to support our restaurants as we know, as we continue to get staffing, we will be able to provide even probably higher comp sales and a little better service to our guests.
So we are continue a full court press on getting properly staffed across the country, especially where a lot of them are there. But there's still a lot that need some help, and we are absolutely all hands on deck to help support that.
And Lauren, on the overtime question you had, we did see a bit more on the overtime. Nothing too significant. It didn't drive a lot of that wage inflation.
But there was -- as you would expect, you have folks working more hours. And so there was a little bit of an uptick on that over time versus last year. And just on the sales. For on-premise sales, while the -- pre-COVID, can you talk about where your on-premise transactions are versus prior levels?
And how you're getting more capacity in the box? And then just how do you think about capacity to expand on-premise from here? I can tell you, Lauren, on quarter two, that And then we had To-Go traffic that was up Those are the components of that And as I mentioned, though -- as Gerry mentioned on the call, we saw that negative dining room traffic get better and better over the course of the quarter and ended up slightly positive in June, June and July even better, even more positive.
And so that's really a function of dining room capacity getting being lifted across the country. Stores -- we still have stores in the quarter that had some pretty significant restrictions in place and things like that. So they continue to find ways to -- right now, they're just focused on meeting the demand that they have.
We do -- our wait times are long, especially on the weekends. Every day part of the week looks really good. And across the geography looks really good. Across the country, the comp sales look great. So nothing that we would call out from a constraint perspective, we feel like we still have quite a bit of capacity within the restaurants to grow traffic and things like that.
So that's going to be the focus for us for sure the rest of the year. Hi, thanks very much. First, Gerry, Tonya, you mentioned development costs are also going up. How much are they going up? And how close are you getting to return hurdles not being satisfactory?
Is this still really good, just going to maybe a little bit less good and it doesn't impact how you think about development over the next 12 or 18 months? Sure, John. I mean actually, we expect costs to be lower than because , we're a bit more pressured with the delays preopenings in that number and things like that. So that caused to be a bit higher. We expect to be lower. But you can't really -- it's hard to quantify exactly what those dollars are. We're still seeing them come in as we continue to get restaurants open and built.
You certainly hear from contractors saying it's difficult on the labor side for them. Sometimes they have some issues on materials. We are very lucky. So far, we have had no issues on anything that has caused us to have concern on meeting our pipeline, any openings or anything like that. And that's been really good to see. My personal opinion, we might see costs pop a little bit more in , as we're getting those bids put together, you might see some of those -- more of those costs being passed on, but still remains to be seen a little bit how that ends up.
So nothing right now that gives us concern. I would say to you that we are having a lot of success with our new store openings and our contractors that we're working with. We are meeting with and just identifying if there is going to be, but it does seem like the supply chain is coming through pretty successfully right now on their side. And then on our side, as Tonya mentioned, our pipeline is very strong and very solid. We're as excited about as we were about , and all the concepts are continuing to have a lot of success in the new store openings, Bubba's, Texas Roadhouse.
So we are covering those costs, I believe. And we're getting it done on time, which is really hats off to our contractors for hitting those commitments. And returns continue to look good with those sales volumes no issue on the return side of things. And then just on pricing, does this experience change in any way your view on maybe how scientifically you look at pricing? I know in the past and maybe even now you're sort of -- it bubbles up from the operators and you get their opinions.
But do you think about more frequency and sort of on the loan faster to sort about this about or maybe you have tools that are more surgical location by location or item by item.
How do you do it, I guess? And is that changing at all? Or do you think the way you do it is sort of the right way to approach pricing going forward? We've got a good historical data on everything that we've done for the last five years, I would say.
If we had to move fast, we could, and I believe our operators would trust us enough if for some reason, we were forced to do that. But we could move if we had to, for some crazy reason. And we do get pretty surgical on the line, the numbers, the menus by store. So we kind of -- all stores live in a pricing grid with other stores similar to them as far as labor costs and things like that are parts of the country. And when we sit down with folks, we're going menu line menu item line by line, really understanding PMICs and gaps and things like that.
So it is a pretty detailed discussion that we currently have today, and that's the way it's been since the beginning of -- since the beginning. Great thanks. I guess if we could start on labor. Just what did you need to do on the incenting on the benefit side as you were doing these hirings?
And what do you think is a fair way to assess what your inflation is going to be in the back half of the year? And also, as we've seen the enhanced benefits roll off, have you seen any pockets of the country where you immediately saw influxes of applicants or ease and hiring start to pick up?
So I'll kind of start off a little bit and let Gerry talk about what the operators have done and things like that. But the labor inflation for the back half of the year, I feel like it's going to be pretty consistent with what we've seen so far. We look at it, Brett, a little bit more on a two-year stack to looking at comparing back to And we feel like that inflation range that we're in is probably what's going to hold for the rest of the year.
Now that has a couple of components in it. So you have wage inflation in there. But I feel think it will be pretty similar. And then I know our operators have been very creative and really all over the hiring piece of it. I know Gerry will have some examples on that.
I think they've got a strategy of being aggressive in their own markets to identify what their needs are. And if they need help in an area on a larger scale, we're there for them. We've got great plans for our local marketing and which drives a lot of communication and partnership out there.
So I think each store has its strategy, but we are being aggressive. We've always known that if we are properly staffed, we will grow the business and we can execute Legendary more consistently. Have you had to -- have they been more in the upfront camp? Or has it been elevated wages and more of a higher back-end guarantee of what people are going to make?
Or is it just that you're able to go with the incentives? And then just before I jump off. On the development front, you talked about excitement about the pipeline for as well, but you also talked about elevated costs. What's your appetite for taking on growing that pipeline as we're seeing these elevated costs. And as you said, some of them may not be transitory, you're talking about companies still going into labor still going into , labor still going in.
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