Top Advantages of Fast Casual Franchising in 2026

We talked a bit before we started 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 business. To me, one of the essential things, and I feel very lucky, is that both brands I've been involved with are unique.

And there's absolutely nothing precisely like Chop Store in regards to what we're making with a big, diverse menu. The majority of brands today are extremely singularly focused in regards to what they're using from a foodstuff. I feel like we started at a benefit with both brands by having something special that filled a specific niche no one else was doing.

Due to the fact that it's simply more difficult to stand out when there are 10, 20, 50 principles within a two- or three-mile radius attempting to do the precise same thing. A lot of it begins with the brand. Does your brand name have something distinct that nobody else is doing? That's unusual.

The 2nd thingI came from a finance background, so a great deal of my knowings are more finance and data-driven versus a lot of early startup restaurateurs who are imaginative types. They like the food, they built the menu, they built the brand name. I most likely could not do that from scratch. If you provided me something that has all those parts in place, I can take it from there and put the playbook in location.

They don't understand their breakeven sales. They don't comprehend how margin improves as sales increase. They don't comprehend cash-on-cash returns. I have actually seen numerous companies where the numbers simply do not work. And yet individuals say: let's open 10 more. And I'll state: why? It does not generate income. Stop. You require to find a concept that is distinct.

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If you don't have those two things, you shouldn't be constructing stores. Yeah, perhaps both? Because as I hear your description, you have actually highlighted 3 things: execution, brand differentiation, and monetary practicality. You have actually got to start with execution. If you do not have an operating model that works, expanding it just multiplies issues.

Second, you require an engaging brand or distinct principle that resonates with clients. And third, the math has to work. If you don't comprehend your unit economics, your repaired and variable costs, you may be broadening blind and losing cash. Precisely. And another essential lesson is about entering new markets.

When we expanded to Dallas, I expected brand-new stores to do 5070% of Phoenix sales in the very first year. Too numerous operators presume brand-new markets will open at full volume day one.

Otherwise, they get rose-colored glasses about success in the home market and presume it will equate rapidly. You discussed anticipating 5070% volumes. I've even seen cases where it's simply 2530% at launch.

Freddy's Frozen Custard & Steakburgers

The Advantages of Fast Casual Franchising in 2026

You require equity sponsors who think in the vision and the group. That's expensive, but it develops vital mass, constructs awareness, and validates above-store management.

And we were lucky that Dallasour second marketwas also where our team lived. Having the whole team in-market to support shops, hire, and guarantee culture was huge.

Individuals often ignore how crucial team is to scaling. How have you approached building and scaling your team? This is something I'm actually pleased with. Our group took all the important things we disliked from past jobsfeeling underappreciated, underpaid, growth-stifledand constructed the opposite culture here. We stress growth mindset and career pathing.

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

So you require equity sponsors who think in the vision and the group. Another lesson: you require to open four to 6 stores in a brand-new market within 2 to three years. That's costly, however it produces important mass, constructs awareness, and validates above-store management. Without it, you remain slow and unprofitable.

At Chop Shop, we intentionally built strong bases in Phoenix and Dallas. That provided us the profitability to withstand sluggish starts in Houston and Atlanta. And we were fortunate that Dallasour 2nd marketwas likewise where our group lived. Having the whole team in-market to support stores, hire, and ensure culture was big.

Freddy's Frozen Custard & Steakburgers

People often underestimate how vital group is to scaling. How have you approached building and scaling your group? This is something I'm truly happy with. Our team took all the important things we disliked from previous jobsfeeling underappreciated, underpaid, growth-stifledand developed the opposite culture here. We highlight growth frame of mind and profession pathing.

Otherwise, they get rose-colored glasses about success in the home market and assume it will translate rapidly. You mentioned expecting 5070% volumes. That's sobering. I've even seen cases where it's simply 2530% at launch. It highlights how important capital structure is. Yes. The majority of little growth principles like ours rely on equity, not debt.

Freddy's Frozen Custard & Steakburgers

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So you require equity sponsors who believe in the vision and the group. Another lesson: you need to open 4 to 6 stores in a new market within 2 to 3 years. That's costly, but it creates vital mass, builds awareness, and justifies above-store management. Without it, you remain sluggish and unprofitable.

And we were lucky that Dallasour second marketwas also where our group lived. Having the whole group in-market to support shops, hire, and guarantee culture was big.

People frequently ignore 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.