Restaurant Industry Shifts Shaping 2026

Thank you. And we also have Clinton Anderson, the CEO of Fourth, who will be moderating the conversation with Jason. Jason, how about I let you offer the audience some details about your background and you can likewise inform them a little bit about Chop Shop. And after that I'll let you take it from there, Clinton.

My name is Jason Morgan, CEO of Original Chop Store. We bought the brand in 2016three unitsand I've grown it to 26. After a short stint of trying to be an accountant for about a year and a half, I transitioned into gambling establishment home and worked in corporate financing.

I was the very first staff member there after private equity bought business. Assisted grow that from 20 to 150 areas, took it public in 2014, and then left about a year and a half after going public to do this at Chop Store. My hope is that we can reproduce the success we had at Zos, and we're off to a really good start.

We're at the counter, we bring the food to the table. It is mainly protein bowlsabout 40 percent of the mix. We also do salads, sandwiches. The key to the program is we have a drink component too with fresh-squeezed juices and protein shakes. We do all stables, we do breakfast throughout the day.

Freddy's Frozen Custard & Steakburgers

A little more complex than some of the walk-the-line ideas that are out there, however we think we have actually got something quite unique. We're going to include another shop this year and a minimum of 4 stores next year. So we will be 31 or so shops by the end of next year.

Hospitality Industry Shifts Redefining 2026

Hey, everybody. It's great to be with you again. My name is Clinton Anderson. I'm the CEO here at Fourth. I have actually been in this role for about 6 years. 4th, as a lot of you know, is a leading company of software application services to the restaurant and hospitality market. Our goal is to assist our customers achieve success in driving profitability and being efficientmanaging labor, managing stock, and essentially supplying them with tools they need to provide their vision.

It's unusual to have companies that are beloved and growing rapidly, that can repeat that success every year. Jason, one of the reasons I was so ecstatic to have you join our session is the success at Zos was remarkable. I have actually just fulfilled a handful of brand names where there was such a strong client affinity for the brand name.

When you talk to clients about Chop Store, they like the place. And to be able to take what is a relatively complex principle in terms of delivering a great experience for the client, and be able to grow that from a few stores to now north of 30 shops next yearit's remarkable.

We're going to speak about how to scale a dining establishment company. Every restaurateur I ever speak with has dreams of taking one store, two stores, five stores, and turning it into something much biggerexpanding throughout the city, across the state, into numerous states, and ultimately nationwide, even global reach. But it's difficult, particularly in today's environment.

It's not an easy time to drive success and development at the exact same time. How do you scale it and make it effective? Second, beyond technology, how do you scale terrific groups?

The Advantages of Restaurant Expansion in 2026

The first question I have for you, Jasonlook, you have actually done this twice now in the dining establishment market. What has your experience been in terms of what it takes to really drive success in expanding dining establishments?

We talked a little bit before we began 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 service. To me, among the essential things, and I feel extremely lucky, is that both brand names I've been included with are special.

And there's absolutely nothing exactly like Chop Store in terms of what we're finishing with a big, varied menu. A lot of brands today are really singularly focused in regards to what they're providing from a food product. I seem like we began at a benefit with both brands by having something distinct that filled a niche no one else was doing.

Since it's simply more difficult to stick out when there are 10, 20, 50 ideas within a 2- or three-mile radius trying to do the specific same thing. A lot of it begins with the brand name. Does your brand have something special that no one else is doing? That's uncommon.

Key Tips to Growing Hospitality Footprints

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

They do not know their breakeven sales. They do not understand how margin enhances as sales increase. They do not understand cash-on-cash returns. I've seen numerous companies where the numbers just don't work. And yet people state: let's open 10 more. And I'll state: why? It doesn't earn money. Stop. You need to find a principle that is unique.

Freddy's Frozen Custard & Steakburgers

If you do not have those two things, you should not be building stores. Yeah, perhaps both? Since as I hear your description, you have actually highlighted 3 things: execution, brand name differentiation, and monetary viability. You've got to start with execution. If you do not have an operating model that works, broadening it just increases problems.

Analyzing Investment Models Against Market Trends

Second, you require an engaging brand or distinct idea that resonates with consumers. And third, the math has to work. If you don't comprehend your system economics, your fixed and variable expenses, you might be expanding blind and losing money. Exactly. And another key lesson has to do with entering brand-new markets.

However when we broadened to Dallas, I anticipated new stores to do 5070% of Phoenix sales in the first year. Too numerous operators presume brand-new markets will open at complete volume the first day. That practically never ever occurs. And when the stores open sluggish, however you have actually signed leases and built a financial design based on greater volumes, you get overextended.