Key Regional Shifts Shaping 2026 Growth

We talked a bit before we started about LinkedIn, and I've 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 key things, and I feel extremely fortunate, is that both brands I have actually been involved with are unique.

And there's nothing exactly like Chop Shop in regards to what we're finishing with a big, diverse menu. The majority of brands today are extremely singularly focused in regards to what they're using from a food. I feel like we began at an advantage with both brands by having something unique that filled a specific niche nobody else was doing.

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

The second thingI came from a financing background, so a great deal of my learnings are more finance and data-driven versus a great deal of early startup restaurateurs who are creative types. They enjoy the food, they developed the menu, they built the brand name. I probably couldn't do that from scratch. If you offered me something that has all those components in location, I can take it from there and put the playbook in location.

They do not know their breakeven sales. They don't understand how margin enhances as sales boost. They don't understand cash-on-cash returns. I've seen many companies where the numbers just do not work. And yet individuals say: let's open 10 more. And I'll state: why? It does not make cash. Stop. You need to find a principle that is special.

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If you don't have those 2 things, you should not be constructing shops. Since as I hear your description, you have actually highlighted 3 things: execution, brand name distinction, and monetary practicality.

Second, you require a compelling brand or unique idea that resonates with consumers. And 3rd, the math has to work. If you do not understand your system economics, your fixed and variable expenses, you may be expanding blind and losing cash. Exactly. And another key lesson has to do with entering new markets.

However when we expanded to Dallas, I expected brand-new stores to do 5070% of Phoenix sales in the very first year. A lot of operators assume brand-new markets will open at complete volume day one. That nearly never takes place. And when the shops open sluggish, however you've signed leases and developed a financial model based upon greater volumes, you get overextended.

Otherwise, they get rose-colored glasses about success in the home market and assume it will equate quickly. You discussed expecting 5070% volumes. That's sobering. I have actually even seen cases where it's just 2530% at launch. It underscores how crucial capital structure is. Yes. A lot of little growth ideas like ours rely on equity, not financial obligation.

Freddy's Frozen Custard & Steakburgers

High-ROI Hospitality Ventures Coming in 2026

You need equity sponsors who believe in the vision and the team. That's expensive, however it develops critical mass, develops awareness, and validates above-store management.

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

Individuals often undervalue how vital group is to scaling. How have you approached building and scaling your group? This is something I'm actually happy of. Our team took all the important things we disliked from previous jobsfeeling underappreciated, underpaid, growth-stifledand developed the opposite culture here. We emphasize development mindset and profession pathing.

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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 just 2530% at launch.

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

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

Freddy's Frozen Custard & Steakburgers

People typically underestimate how vital team is to scaling. How have you approached structure and scaling your team? This is something I'm truly pleased with. Our group took all the things we hated from past jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here. We stress development state of mind and profession pathing.

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

Freddy's Frozen Custard & Steakburgers

National Success in Corporate Expansion

So you need equity sponsors who think in the vision and the team. Another lesson: you need to open four to 6 stores in a new market within 2 to 3 years. That's pricey, but it creates vital mass, develops awareness, and validates above-store leadership. Without it, you stay slow and unprofitable.

At Chop Store, we deliberately built strong bases in Phoenix and Dallas. That offered us the profitability to endure sluggish starts in Houston and Atlanta. And we were fortunate that Dallasour 2nd marketwas also where our group lived. Having the entire team in-market to support shops, hire, and ensure culture was big.

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