Major Expansion Targets in 2026

We talked a bit before we began 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 company. To me, among the key things, and I feel really lucky, is that both brands I have actually been involved with are distinct.

And there's absolutely nothing exactly like Chop Shop in regards to what we're finishing with a big, varied menu. The majority of brand names today are really singularly focused in regards to what they're providing from a food. I feel like we began at a benefit with both brands by having something unique that filled a specific niche no one else was doing.

Due to the fact that it's just harder to stand apart when there are 10, 20, 50 concepts within a two- or three-mile radius attempting to do the specific same thing. A lot of it starts with the brand. Does your brand name have something special that no one else is doing? That's rare.

The second thingI originated from a finance background, so a lot of my knowings are more financing and data-driven versus a lot of early start-up restaurateurs who are imaginative types. They enjoy the food, they developed the menu, they developed the brand name. I probably could not do that from scratch. If you gave me something that has all those elements in place, I can take it from there and put the playbook in place.

They do not understand their breakeven sales. They do not understand how margin improves as sales boost. They don't understand cash-on-cash returns. I've seen a lot of companies where the numbers just do not work. And yet individuals state: let's open 10 more. And I'll state: why? It doesn't generate income. Stop. You need to find an idea that is unique.

Corporate Expansion Targets in 2026

If you do not have those two things, you shouldn't be constructing stores. Since as I hear your description, you've highlighted 3 things: execution, brand name distinction, and financial practicality.

Second, you need an engaging brand name or unique idea that resonates with consumers. And 3rd, the mathematics has to work. If you do not understand your unit economics, your repaired and variable costs, you might be broadening blind and losing money. Exactly. And another crucial lesson is about going into new markets.

When we broadened to Dallas, I expected brand-new shops to do 5070% of Phoenix sales in the very first year. Too numerous operators assume new markets will open at full volume day one. That nearly never ever occurs. And when the stores open sluggish, however you have actually signed leases and developed a financial 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 discussed expecting 5070% volumes. I've even seen cases where it's simply 2530% at launch.

Freddy's Frozen Custard & Steakburgers

Fast Casual Market Share Trends for 2026

So you require equity sponsors who believe in the vision and the group. Another lesson: you require to open 4 to six stores in a new market within 2 to 3 years. That's costly, however it develops vital mass, develops awareness, and justifies above-store management. Without it, you remain slow and unprofitable.

And we were fortunate that Dallasour 2nd marketwas likewise where our group lived. Having the entire team in-market to support stores, hire, and ensure culture was huge.

Individuals typically undervalue how critical group is to scaling. How have you approached structure and scaling your team? This is something I'm actually proud of. Our group took all the important things we hated from past jobsfeeling underappreciated, underpaid, growth-stifledand constructed the opposite culture here. We emphasize development mindset and profession pathing.

Strategic Growth Targets for 2026

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

You require equity sponsors who believe in the vision and the group. That's expensive, however it produces vital mass, develops awareness, and justifies above-store leadership.

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

Freddy's Frozen Custard & Steakburgers

People typically underestimate how vital team is to scaling. Our group took all the things we hated from previous 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 translate quickly. You mentioned 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 Move?

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

At Chop Shop, we intentionally built 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 fortunate that Dallasour 2nd marketwas also where our team lived. Having the whole group in-market to support shops, hire, and make sure culture was substantial.

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