Is Fast Casual a Best Move?

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 business. To me, one of the essential things, and I feel really lucky, is that both brands I have actually been involved with are distinct.

And there's nothing exactly like Chop Shop in regards to what we're finishing with a large, varied menu. The majority of brand names today are very singularly focused in terms of what they're using from a foodstuff. I feel like we started at a benefit with both brand names by having something unique that filled a specific niche no one else was doing.

Because it's simply more difficult to stand out when there are 10, 20, 50 concepts within a 2- or three-mile radius attempting to do the specific same thing. So a lot of it begins with the brand. Does your brand have something unique that nobody else is doing? That's rare.

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

They do not know their breakeven sales. They don't understand how margin improves as sales boost. They do not understand cash-on-cash returns. I've seen so many business where the numbers just do not work. And yet individuals state: let's open 10 more. And I'll state: why? It doesn't generate income. Stop. You need to find an idea that is unique.

Key Regional Milestones Shaping 2026 Expansion

If you don't have those two things, you should not be developing shops. Yeah, perhaps both, right? Due to the fact that as I hear your description, you have actually highlighted 3 things: execution, brand differentiation, and financial practicality. You have actually got to start with execution. If you do not have an operating model that works, broadening it just increases problems.

Second, you require a compelling brand name or distinct principle that resonates with customers. And another essential lesson is about going into new markets.

When we broadened to Dallas, I anticipated new stores to do 5070% of Phoenix sales in the very first year. Too lots of 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 equate rapidly. You discussed expecting 5070% volumes. I have actually even seen cases where it's simply 2530% at launch.

Freddy's Frozen Custard & Steakburgers

Profitable Hospitality Investments Arising in 2026

You require equity sponsors who believe in the vision and the group. That's expensive, but it produces critical mass, develops awareness, and justifies above-store leadership.

And we were fortunate that Dallasour second marketwas also where our team lived. Having the entire team in-market to support shops, hire, and ensure culture was big.

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

Key Tips for Growing Hospitality Footprints

Otherwise, they get rose-colored glasses about success in the home market and assume it will equate quickly. You mentioned expecting 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 pricey, however it creates critical mass, develops awareness, and justifies above-store leadership.

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

Freddy's Frozen Custard & Steakburgers

Individuals often ignore how vital group 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 things we disliked from previous jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here. We highlight growth state of mind and profession pathing.

Otherwise, they get rose-colored glasses about success in the home market and assume it will equate quickly. You mentioned expecting 5070% volumes. That's sobering. I've even seen cases where it's just 2530% at launch. It underscores how important capital structure is. Yes. Most little growth principles like ours depend on equity, not financial obligation.

Freddy's Frozen Custard & Steakburgers

Essential Tips for Growing Hospitality Footprints

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

And we were fortunate that Dallasour 2nd marketwas also where our group lived. Having the whole group in-market to support stores, hire, and make sure culture was substantial.

Individuals often undervalue how critical group is to scaling. Our group took all the things we hated from past jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here.