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We talked a little bit before we began about LinkedIn, and I've 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 really lucky, is that both brands I have actually been involved with are unique.

And there's absolutely nothing exactly like Chop Store in regards to what we're making with a large, varied menu. Many brands today are really singularly focused in terms of what they're providing from a foodstuff. I feel like we began at a benefit with both brands by having something unique that filled a niche no one else was doing.

A lot of it starts with the brand name. Does your brand 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 start-up restaurateurs who are innovative types. They love the food, they built the menu, they built the brand.

They don't understand their breakeven sales. They do not comprehend how margin improves as sales increase. I have actually seen so lots of business where the numbers simply don't work.

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If you don't have those 2 things, you should not be constructing stores. Because as I hear your description, you've highlighted 3 things: execution, brand differentiation, and monetary viability.

Second, you require an engaging brand name or special concept that resonates with consumers. And 3rd, the mathematics needs to work. If you don't understand your system economics, your fixed and variable costs, you might be broadening blind and losing cash. Precisely. And another essential lesson has to do with going into new markets.

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

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

Freddy's Frozen Custard & Steakburgers

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You require equity sponsors who think in the vision and the group. Another lesson: you need to open four to 6 stores in a brand-new market within two to three years. That's expensive, however it creates crucial mass, constructs awareness, and justifies above-store management. Without it, you stay slow and unprofitable.

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

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

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Otherwise, they get rose-colored glasses about success in the home market and presume it will equate rapidly. You mentioned anticipating 5070% volumes. That's sobering. I have actually even seen cases where it's just 2530% at launch. It underscores how vital capital structure is. Yes. The majority of little development concepts like ours rely on equity, not debt.

You need equity sponsors who believe in the vision and the group. Another lesson: you need to open 4 to 6 shops in a brand-new market within 2 to 3 years. That's expensive, however it develops critical mass, develops awareness, and validates above-store leadership. Without it, you stay slow and unprofitable.

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

Freddy's Frozen Custard & Steakburgers

People typically ignore how important team is to scaling. Our group took all the things we disliked from past jobsfeeling underappreciated, underpaid, growth-stifledand developed the opposite culture here.

Otherwise, they get rose-colored glasses about success in the home market and presume it will equate quickly. You pointed out expecting 5070% volumes. That's sobering. I've even seen cases where it's just 2530% at launch. It highlights how crucial capital structure is. Yes. Many small growth principles like ours depend on equity, not debt.

Freddy's Frozen Custard & Steakburgers

Expansion Updates: New Milestones in 2026

You require equity sponsors who believe in the vision and the team. Another lesson: you require to open four to 6 stores in a brand-new market within 2 to 3 years. That's expensive, however it creates crucial mass, develops awareness, and justifies above-store leadership. Without it, you remain slow and unprofitable.

At Chop Store, we intentionally built strong bases in Phoenix and Dallas first. That gave us the profitability to hold up against slow starts in Houston and Atlanta. And we were fortunate that Dallasour 2nd marketwas also where our team lived. Having the entire group in-market to support shops, hire, and ensure culture was substantial.

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