Regional Success in Corporate Expansion

We talked a little bit before we began 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 service. To me, among the key things, and I feel really fortunate, is that both brands I've been involved with are special.

And there's absolutely nothing precisely like Chop Store in terms of what we're making with a big, varied menu. The majority of brand names today are really singularly focused in terms of what they're providing from a food. I feel like we started at a benefit with both brand names by having something unique that filled a niche nobody else was doing.

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

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

They do not understand their breakeven sales. They don't comprehend how margin improves as sales boost. I've seen so many companies where the numbers just do not work.

Quick Service Industry Trends

If you do not have those 2 things, you shouldn't be building stores. Because as I hear your description, you have actually highlighted three things: execution, brand name differentiation, and financial viability.

Second, you need a compelling brand or unique principle that resonates with customers. And 3rd, the mathematics needs to work. If you do not comprehend your unit economics, your fixed and variable expenses, you might be broadening blind and losing cash. Exactly. And another key lesson has to do with entering brand-new markets.

But when we expanded to Dallas, I expected new shops to do 5070% of Phoenix sales in the first year. A lot of operators assume new markets will open at full volume day one. That practically never occurs. And when the shops open slow, but you've signed leases and built a monetary model based on greater volumes, you get overextended.

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

Freddy's Frozen Custard & Steakburgers

Key Market Shifts Shaping 2026 Expansion

You require equity sponsors who believe in the vision and the team. That's costly, but it develops important mass, builds awareness, and validates above-store leadership.

At Chop Store, we intentionally built strong bases in Phoenix and Dallas first. That offered us the profitability to withstand slow starts in Houston and Atlanta. And we were lucky that Dallasour second marketwas likewise where our team lived. Having the entire group in-market to support stores, hire, and make sure culture was big.

People typically ignore how important group is to scaling. How have you approached structure and scaling your group? This is something I'm actually happy with. Our group took all the important things we hated from past jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here. We highlight development frame of mind and profession pathing.

Hospitality Sector Shifts Shaping 2026

Otherwise, they get rose-colored glasses about success in the home market and presume it will translate quickly. You pointed out anticipating 5070% volumes. That's sobering. I've even seen cases where it's simply 2530% at launch. It underscores how vital capital structure is. Yes. A lot of little development ideas like ours count on equity, not debt.

You need equity sponsors who believe in the vision and the group. 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 crucial mass, builds awareness, and validates above-store management. Without it, you remain slow and unprofitable.

At Chop Store, we deliberately constructed strong bases in Phoenix and Dallas initially. That provided us the success to stand up to slow starts in Houston and Atlanta. And we were lucky that Dallasour 2nd marketwas also where our team lived. Having the whole team in-market to support shops, hire, and ensure culture was huge.

Freddy's Frozen Custard & Steakburgers

Individuals often undervalue how crucial team is to scaling. Our team 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 assume it will equate rapidly. You mentioned anticipating 5070% volumes. That's sobering. I've even seen cases where it's simply 2530% at launch. It highlights how critical capital structure is. Yes. The majority of little growth ideas like ours rely on equity, not financial obligation.

Freddy's Frozen Custard & Steakburgers

Why Is Fast Casual a Wise Investment?

You require equity sponsors who think in the vision and the team. That's costly, but it creates vital mass, builds awareness, and validates above-store management.

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

Individuals frequently underestimate how vital team 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 important things we hated from previous jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here. We emphasize growth state of mind and career pathing.