The Advantages of Fast Casual Expansion in 2026

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 company. To me, among the crucial things, and I feel extremely fortunate, is that both brands I've been included with are unique.

And there's absolutely nothing precisely like Chop Store in terms of what we're doing with a large, varied menu. A lot of brands today are very singularly focused in regards to what they're providing from a food. I feel like we started at an advantage with both brand names by having something distinct that filled a specific niche no one else was doing.

Since it's simply more difficult to stand apart when there are 10, 20, 50 concepts within a two- or three-mile radius attempting to do the specific same thing. So a lot of it begins with the brand name. Does your brand name have something distinct that no one else is doing? That's unusual.

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

They do not know their breakeven sales. They don't comprehend how margin enhances as sales increase. I've seen so lots of companies where the numbers just don't work.

High-ROI Hospitality Ventures Coming in 2026

If you do not have those two things, you should not be building shops. Since as I hear your description, you've highlighted 3 things: execution, brand distinction, and monetary practicality.

Second, you require a compelling brand or special idea that resonates with consumers. And another key lesson is about getting in new markets.

When we broadened to Dallas, I expected brand-new shops to do 5070% of Phoenix sales in the very first year. Too numerous operators assume brand-new markets will open at complete volume the first day. That practically never ever takes place. And when the shops open sluggish, but you have actually signed leases and developed a monetary design based upon higher volumes, you get overextended.

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

Freddy's Frozen Custard & Steakburgers

Significant Regional Milestones Shaping 2026 Expansion

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

At Chop Store, we deliberately developed strong bases in Phoenix and Dallas. That gave us the success to stand up to sluggish starts in Houston and Atlanta. And we were fortunate that Dallasour second marketwas likewise where our group lived. Having the entire team in-market to support shops, hire, and ensure culture was big.

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

Comparing Franchise Models Against Market Data

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

You need equity sponsors who think in the vision and the group. Another lesson: you need to open four to six shops in a brand-new market within 2 to three years. That's expensive, however it develops important mass, develops awareness, and justifies above-store management. Without it, you remain slow and unprofitable.

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

Freddy's Frozen Custard & Steakburgers

People often underestimate how crucial team 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 built the opposite culture here. We emphasize growth mindset and profession pathing.

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

Freddy's Frozen Custard & Steakburgers

Key Market Milestones for 2026 Expansion

You need equity sponsors who believe in the vision and the team. Another lesson: you need to open four to 6 stores in a brand-new market within 2 to three years. That's pricey, but it produces emergency, constructs awareness, and justifies above-store management. Without it, you stay slow and unprofitable.

At Chop Shop, we intentionally developed strong bases in Phoenix and Dallas initially. That gave us the profitability to endure slow starts in Houston and Atlanta. And we were lucky that Dallasour second marketwas likewise where our team lived. Having the whole team in-market to support stores, hire, and guarantee culture was substantial.

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