Quick Service Industry Trends for 2026

Growing a dining establishment from one or two locations into a multi-unit chain is the dream of lots of operators. Scaling without slipping into losses or losing culture is unusual. In a webinar, Fourth's CEO, Clinton Anderson sat down with Jason Morgan, CEO of ChopShop, to unload the lessons gained from scaling 2 effective dining establishment brands.

Lots of brand names chase expansion before the essential engine is strong. As Jason kept in mind, "expansion of an inefficient operating model is a catastrophe." Unless you already have actually: A separated brand name that resonates A proven unit economics model And functional rigor you risk watering down quality, overspending, and hitting underperformance quicker than you expect.

Freddy's Frozen Custard & Steakburgers

Jason shared that lots of operators do not know their break-even sales or minimal margin gain as volume boosts, and yet they green light new units. This isn't simply theory.

Top Advantages of Restaurant Franchising in 2026

Brands with clear expense exposure and disciplined expansion are weathering inflation far better than those chasing volume for its own sake. When expansion is constructed on opaque assumptions, you're essentially betting with capital. From the webinar, Jason and Clinton's conversation appeared 3 non-negotiable pillars for scaling well. Lots of brands can talk differentiation, but few execute regularly throughout markets.

Ensuring your operating model genuinely works before growth is the difference between scaling success and increasing inadequacy. Jason emphasized that both ChopShop and his previous brand, Zos Kitchen area, prospered due to the fact that they offered something couple of others were doing. When your idea is too generic (hamburgers, pizza, tacos), you complete on margin alone.

The math must operate at the first day, month 12, and year three. Jason discussed cash-on-cash returns, breakeven volumes, and margin improvement curves. Without clear monetary criteria, expansion becomes guesswork. Assuming brand-new markets will open at full-blown, home-market volume is one of the riskiest errors a chain can make. In the webinar, Jason shared that in Dallas, ChopShop expected new units to hit 50-70% of Phoenix volumes.

Freddy's Frozen Custard & Steakburgers

Key Strategies to Expanding Restaurant Brands

Some lessons from Jason's experience: Accept that brand-new shops will open gradually. Be capitalized with a buffer to soak up early losses. In a new market, aim to open 4-6 shops within a 2-3 year period to develop awareness and justify above-store assistance. Seed market leadership and move proven operators into new markets to "live it daily." These techniques help avoid overextending early and enable regional brand name momentum to build naturally.

Jason described how ChopShop developed profession paths from hourly roles all the method to local management. A few of their essential individuals metrics: Hourly turnover around 97% (roughly half what market standards often report) GM tenure going beyond 4.5 years Over 80% of GMs promoted internally They also produced "AGM-in-training" functions to prepare brand-new managers before a store opens, a smarter, proactive way to grow bench strength.

It's rare (and somewhat adventurous) to make an IT lead your 4th hire, but that's precisely what Jason did at ChopShop. Their tech stack allowed business to feel like a 150-unit brand even when they had just 18 locations, a resilience advantage when COVID struck. Secret tech financial investments included: A modern POS (rather than legacy systems) Back-office systems and stock tools An information warehouse (Mirus) to create real reporting Digital buying and loyalty combinations (today 74% of sales are digital, and 40% bring commitment IDs) As highlights, technology is no longer optional, it's how operators scale naturally, manage expenses, and reduce danger.

If growth outmatches your bench, quality erodes. Scaling isn't simply about shop count, it's about growing a service that keeps brand identity, quality, and function.

Strategic Growth Targets for 2026

It's much simpler to broaden when growth is grounded in clarity, rigor, and a people-first ethos. Wish to hear this all straight from Jason? Watch the full webinar on-demand to discover how ChopShop is scaling beneficially. If you 'd like a turnkey development assessment, financial model evaluation, or to check out how connected operations software can support your scaling journey, reach out to Fourth.

Everybody, welcome to our webinar today. Our session is all about the growth playbook for dining establishment CEOs with an amazing guest speaker I will present momentarily. We'll go ahead and get things begun. I'm Christina from the 4th team here as your host. And simply as people are signing up with and signing on, I'll utilize this time to cover a quick few housekeeping notes.