The Benefits of Fast Casual Expansion in 2026

We talked a bit before we started about LinkedIn, and I have actually got a post teed approximately follow this next week about what the playbook is likepoint by pointfor growing a business. To me, among the key things, and I feel extremely fortunate, is that both brands I've been involved with are unique.

And there's nothing precisely like Chop Store in regards to what we're making with a large, varied menu. A lot of brand names today are very singularly focused in regards to what they're using from a food. I feel like we began at an advantage with both brands by having something distinct that filled a specific niche nobody else was doing.

Because it's simply more difficult to stick out when there are 10, 20, 50 ideas within a two- or three-mile radius trying to do the precise same thing. So a lot of it begins with the brand. Does your brand name have something distinct that nobody else is doing? That's unusual.

The second thingI came from a financing background, so a great deal of my learnings are more finance and data-driven versus a great deal of early startup restaurateurs who are imaginative types. They enjoy the food, they constructed the menu, they built the brand. I most likely could not do that from scratch. However if you provided me something that has all those components in place, I can take it from there and put the playbook in place.

They don't understand their breakeven sales. They don't understand how margin improves as sales increase. They do not comprehend cash-on-cash returns. I have actually seen numerous business where the numbers simply do not work. And yet people state: let's open 10 more. And I'll state: why? It doesn't earn money. Stop. You need to discover a principle that is special.

Expansion Updates: Regional Developments for 2026

If you do not have those 2 things, you shouldn't be constructing stores. Yeah, possibly both? Because as I hear your description, you have actually highlighted three things: execution, brand differentiation, and monetary practicality. You've got to begin with execution. If you don't have an operating design that works, broadening it simply increases issues.

Second, you need an engaging brand or special idea that resonates with consumers. And 3rd, the math needs to work. If you do not understand your system economics, your repaired and variable expenses, you might be expanding blind and losing cash. Precisely. And another essential lesson is about going into brand-new markets.

However when we expanded to Dallas, I anticipated new stores to do 5070% of Phoenix sales in the first year. A lot of operators presume brand-new markets will open at full volume the first day. That nearly never happens. And when the shops open sluggish, however you have actually signed leases and developed a financial design based on greater volumes, you get overextended.

Otherwise, they get rose-colored glasses about success in the home market and presume it will equate quickly. You discussed expecting 5070% volumes. I've even seen cases where it's simply 2530% at launch.

Freddy's Frozen Custard & Steakburgers

Hospitality Sector Shifts Shaping 2026

You need equity sponsors who think in the vision and the team. That's costly, however it develops vital mass, builds awareness, and justifies above-store management.

And we were lucky that Dallasour second marketwas likewise where our team lived. Having the whole team in-market to support shops, hire, and make sure culture was substantial.

Individuals frequently underestimate how crucial team is to scaling. How have you approached building and scaling your group? This is something I'm actually happy with. Our team took all the important things we hated from past jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here. We highlight growth mindset and career pathing.

The Advantages of Restaurant Expansion in 2026

Otherwise, they get rose-colored glasses about success in the home market and assume it will equate quickly. You discussed expecting 5070% volumes. I have actually even seen cases where it's just 2530% at launch.

So you need equity sponsors who think in the vision and the group. Another lesson: you require to open four to 6 stores in a brand-new market within 2 to 3 years. That's pricey, but it develops emergency, builds awareness, and validates above-store leadership. Without it, you stay sluggish and unprofitable.

At Chop Shop, we intentionally developed strong bases in Phoenix and Dallas. That provided us the profitability to endure sluggish starts in Houston and Atlanta. And we were fortunate that Dallasour second marketwas also where our group lived. Having the whole team in-market to support stores, hire, and ensure culture was huge.

Freddy's Frozen Custard & Steakburgers

People often underestimate how vital group is to scaling. Our team took all the things we disliked from past jobsfeeling underappreciated, underpaid, growth-stifledand developed the opposite culture here.

Otherwise, they get rose-colored glasses about success in the home market and presume it will equate rapidly. You pointed out anticipating 5070% volumes. I've even seen cases where it's simply 2530% at launch.

Freddy's Frozen Custard & Steakburgers

Leading Investment Opportunities in 2026

You need equity sponsors who think in the vision and the group. That's expensive, but it develops crucial mass, develops awareness, and validates above-store leadership.

And we were fortunate that Dallasour second marketwas likewise where our team lived. Having the entire team in-market to support shops, hire, and make sure culture was substantial.

Individuals frequently undervalue how vital group is to scaling. How have you approached structure and scaling your group? This is something I'm really pleased with. Our group took all the things we disliked from previous jobsfeeling underappreciated, underpaid, growth-stifledand constructed the opposite culture here. We highlight growth mindset and career pathing.