Key Regional Shifts for 2026 Growth

We talked a little bit before we started about LinkedIn, and I have actually got a post teed as much as follow this next week about what the playbook is likepoint by pointfor growing a service. To me, among the key things, and I feel very lucky, is that both brands I have actually been involved with are special.

And there's absolutely nothing exactly like Chop Store in regards to what we're making with a big, diverse menu. A lot of brand names today are extremely singularly focused in regards to what they're using from a food. I feel like we started at an advantage with both brand names by having something unique that filled a niche no one else was doing.

A lot of it begins with the brand. Does your brand name have something unique that no one else is doing?

The 2nd thingI came from a financing background, so a lot of my learnings are more finance and data-driven versus a lot of early start-up restaurateurs who are creative types. They love the food, they built the menu, they built the brand.

They don't know their breakeven sales. They do not comprehend how margin improves as sales increase. They do not comprehend cash-on-cash returns. I've seen a lot of business where the numbers simply do not work. And yet individuals say: let's open 10 more. And I'll say: why? It does not make money. Stop. You require to find a concept that is distinct.

Key Tips for Expanding Hospitality Brands

If you do not have those two things, you shouldn't be constructing stores. Because as I hear your description, you've highlighted three things: execution, brand distinction, and financial practicality.

Second, you need a compelling brand name or special concept that resonates with clients. And third, the mathematics has to work. If you do not understand your system economics, your repaired and variable costs, you might be broadening blind and losing money. Exactly. And another crucial lesson has to do with going into new markets.

When we broadened to Dallas, I anticipated brand-new stores to do 5070% of Phoenix sales in the very first year. A lot of operators assume new markets will open at complete volume the first day. That nearly never ever takes place. And when the shops open sluggish, however you have actually signed leases and built a monetary design based on higher volumes, you get overextended.

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

Freddy's Frozen Custard & Steakburgers

Hospitality Sector Trends Shaping 2026

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

And we were lucky that Dallasour 2nd marketwas also where our group lived. Having the whole team in-market to support shops, hire, and guarantee culture was big.

People typically underestimate how crucial group is to scaling. How have you approached structure and scaling your group? This is something I'm actually pleased with. Our team took all the things we disliked from previous jobsfeeling underappreciated, underpaid, growth-stifledand constructed the opposite culture here. We highlight development mindset and profession pathing.

The Benefits of Fast Casual Franchising in 2026

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

You require equity sponsors who think in the vision and the team. Another lesson: you need to open 4 to 6 shops in a brand-new market within 2 to 3 years. That's expensive, but it produces vital mass, develops awareness, and justifies above-store leadership. Without it, you remain sluggish and unprofitable.

And we were lucky that Dallasour second marketwas also where our team lived. Having the whole team in-market to support stores, hire, and ensure culture was huge.

Freddy's Frozen Custard & Steakburgers

Individuals often undervalue how crucial team is to scaling. Our group took all the things we disliked from past jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here.

Otherwise, they get rose-colored glasses about success in the home market and presume it will translate quickly. You mentioned expecting 5070% volumes. That's sobering. I've even seen cases where it's simply 2530% at launch. It highlights how important capital structure is. Yes. Most small growth principles like ours depend on equity, not debt.

Freddy's Frozen Custard & Steakburgers

Significant Regional Milestones Shaping 2026 Growth

You need equity sponsors who think in the vision and the team. Another lesson: you need to open 4 to 6 stores in a new market within 2 to 3 years. That's pricey, but it develops emergency, constructs awareness, and validates above-store management. Without it, you stay slow and unprofitable.

At Chop Shop, we intentionally constructed strong bases in Phoenix and Dallas. That gave us the success to hold up against sluggish starts in Houston and Atlanta. And we were fortunate that Dallasour second marketwas also where our team lived. Having the entire group in-market to support shops, hire, and ensure culture was huge.

People frequently ignore how critical team is to scaling. Our group took all the things we hated from past jobsfeeling underappreciated, underpaid, growth-stifledand constructed the opposite culture here.