Strategic Growth Targets for 2026

We talked a little bit before we started about LinkedIn, and I have actually got a post teed up to follow this next week about what the playbook is likepoint by pointfor growing a company. To me, one of the crucial things, and I feel really lucky, is that both brands I've been involved with are special.

And there's nothing precisely like Chop Shop in terms of what we're making with a large, diverse menu. Most brand names today are really singularly focused in regards to what they're using from a food item. I feel like we began at a benefit with both brands by having something special that filled a specific niche nobody else was doing.

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

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

They don't know their breakeven sales. They do not understand how margin enhances as sales increase. They do not comprehend cash-on-cash returns. I've seen so numerous business where the numbers just do not work. And yet people state: let's open 10 more. And I'll say: why? It doesn't make money. Stop. You require to find an idea that is distinct.

The Advantages of Restaurant Expansion in 2026

If you do not have those two things, you shouldn't be constructing stores. Yeah, possibly both, right? Since as I hear your description, you have actually highlighted three things: execution, brand differentiation, and monetary viability. You've got to start with execution. If you don't have an operating model that works, broadening it just increases problems.

Second, you need a compelling brand name or distinct principle that resonates with clients. And another key lesson is about getting in new markets.

When we broadened to Dallas, I anticipated new shops to do 5070% of Phoenix sales in the very first year. Too lots of operators assume brand-new markets will open at full volume day one.

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

Freddy's Frozen Custard & Steakburgers

Is Fast Casual a Best Investment?

You require equity sponsors who believe in the vision and the group. That's expensive, but it creates critical mass, constructs awareness, and validates above-store leadership.

At Chop Store, we intentionally constructed strong bases in Phoenix and Dallas first. That provided us the profitability to stand up to sluggish starts in Houston and Atlanta. And we were lucky that Dallasour second marketwas likewise where our group lived. Having the entire team in-market to support shops, hire, and ensure culture was substantial.

Individuals frequently ignore how vital team is to scaling. How have you approached structure and scaling your team? This is something I'm actually pleased with. Our team took all the important things we hated from previous jobsfeeling underappreciated, underpaid, growth-stifledand constructed the opposite culture here. We stress development frame of mind and profession pathing.

Profitable Business Investments Coming in 2026

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

You require equity sponsors who believe in the vision and the team. Another lesson: you need to open four to 6 shops in a new market within 2 to 3 years. That's pricey, but it creates emergency, develops awareness, and justifies above-store leadership. Without it, you remain slow and unprofitable.

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

Freddy's Frozen Custard & Steakburgers

Individuals frequently underestimate how vital team is to scaling. Our group took all the things we hated from previous jobsfeeling underappreciated, underpaid, growth-stifledand constructed the opposite culture here.

Otherwise, they get rose-colored glasses about success in the home market and presume it will translate rapidly. You discussed expecting 5070% volumes. That's sobering. I've even seen cases where it's simply 2530% at launch. It highlights how crucial capital structure is. Yes. A lot of small development concepts like ours rely on equity, not debt.

Freddy's Frozen Custard & Steakburgers

Hospitality Industry Trends Redefining 2026

You require equity sponsors who think in the vision and the group. Another lesson: you need to open four to six stores in a new market within two to 3 years. That's costly, but it creates emergency, builds awareness, and justifies above-store management. Without it, you remain sluggish and unprofitable.

At Chop Shop, we intentionally developed strong bases in Phoenix and Dallas initially. That gave us the success to stand up to slow starts in Houston and Atlanta. And we were fortunate that Dallasour second marketwas likewise where our team lived. Having the entire team in-market to support stores, hire, and guarantee culture was big.

Individuals often ignore how critical group is to scaling. How have you approached structure and scaling your team? This is something I'm truly happy with. Our team took all the things we disliked from previous jobsfeeling underappreciated, underpaid, growth-stifledand developed the opposite culture here. We stress growth state of mind and career pathing.