Quick Service Industry Trends for 2026

Growing a restaurant from one or 2 locations into a multi-unit chain is the dream of many operators., to unpack the lessons discovered from scaling two successful dining establishment brands.

Lots of brand names chase expansion before the basic engine is strong. As Jason noted, "growth of an ineffective operating design is a catastrophe." Unless you currently have actually: A differentiated brand name that resonates A proven system economics design And operational rigor you run the risk of watering down quality, overspending, and striking underperformance quicker than you expect.

Freddy's Frozen Custard & Steakburgers

Jason shared that lots of operators don't understand their break-even sales or marginal margin gain as volume boosts, and yet they green light brand-new systems. This isn't just theory.

National Milestones in Brand Scaling

Brands with clear expense presence and disciplined growth are weathering inflation far much better than those chasing volume for its own sake. Many brands can talk distinction, however few carry out regularly across markets.

Ensuring your operating design really works before expansion is the distinction in between scaling success and multiplying inefficiency. Jason highlighted that both ChopShop and his previous brand name, Zos Cooking area, prospered because they offered something couple of others were doing. When your principle is too generic (hamburgers, pizza, tacos), you complete on margin alone.

The mathematics must work at the first day, month 12, and year three. Jason discussed cash-on-cash returns, breakeven volumes, and margin improvement curves. Without clear financial standards, expansion becomes uncertainty. Presuming brand-new markets will open at full-blown, home-market volume is among the riskiest mistakes a chain can make. In the webinar, Jason shared that in Dallas, ChopShop expected brand-new units to hit 50-70% of Phoenix volumes.

Freddy's Frozen Custard & Steakburgers

Strategic Growth Milestones in 2026

Some lessons from Jason's experience: Accept that brand-new stores will open gradually. Be capitalized with a buffer to soak up early losses. In a new market, goal to open 4-6 stores within a 2-3 year duration to develop awareness and validate above-store assistance. Seed market leadership and move proven operators into brand-new markets to "live it daily." These techniques assist prevent overextending early and allow local brand name momentum to construct organically.

Jason described how ChopShop constructed career paths from per hour roles all the method to local management. Some of their key people metrics: Per hour turnover around 97% (approximately half what industry norms typically report) GM tenure exceeding 4.5 years Over 80% of GMs promoted internally They likewise created "AGM-in-training" roles to prepare new managers before a store opens, a smarter, proactive way to grow bench strength.

It's unusual (and somewhat adventurous) to make an IT lead your fourth hire, however that's exactly what Jason did at ChopShop. Their tech stack enabled the service to seem like a 150-unit brand name even when they had simply 18 areas, a durability benefit when COVID struck. Secret tech investments included: A modern-day POS (instead of legacy systems) Back-office systems and stock tools A data storage facility (Mirus) to generate 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 predictably, manage costs, and mitigate danger.

Without a full view of cost structure, AUV can be misleading. If you do not fund early ramp losses, you might be forced to pull away. If growth exceeds your bench, quality erodes. Waiting to "grow" before constructing systems is a frequent mistake. Scaling isn't practically shop count, it has to do with growing an organization that retains brand identity, quality, and purpose.

Why Is Scaling a Wise Move?

It's much easier to expand when development is grounded in clarity, rigor, and a people-first ethos.

Our session is all about the development playbook for restaurant CEOs with an exciting guest speaker I will introduce for a short while. And just as individuals are joining and signing on, I'll use this time to cover a quick couple of housekeeping notes.