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We talked a little bit before we started about LinkedIn, and I have actually got a post teed as much as follow this next week about what the playbook is likepoint by pointfor growing a company. To me, among the crucial things, and I feel really fortunate, is that both brand names I've been included with are special.

And there's nothing exactly like Chop Store in regards to what we're finishing with a large, varied menu. A lot of brand names today are extremely singularly focused in regards to what they're providing from a foodstuff. I feel like we began at a benefit with both brand names by having something special that filled a niche nobody else was doing.

A lot of it begins with the brand name. Does your brand have something special 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 startup restaurateurs who are innovative types. They enjoy the food, they developed the menu, they constructed the brand.

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

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If you don't have those 2 things, you shouldn't be developing stores. Because as I hear your description, you've highlighted 3 things: execution, brand distinction, and financial practicality.

Second, you need an engaging brand or distinct idea that resonates with clients. And third, the math needs to work. If you don't understand your system economics, your fixed and variable expenses, you may be expanding blind and losing money. Precisely. And another essential lesson is about entering brand-new markets.

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

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

Freddy's Frozen Custard & Steakburgers

Why Is Fast Casual a Best Investment?

You require equity sponsors who believe in the vision and the team. That's expensive, however it creates important mass, builds 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 stores, hire, and guarantee culture was substantial.

People often underestimate how crucial team is to scaling. How have you approached building and scaling your group? This is something I'm really proud of. Our team took all the things we hated from past jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here. We highlight growth state of mind and profession pathing.

Expansion Updates: New Developments for 2026

Otherwise, they get rose-colored glasses about success in the home market and assume it will equate rapidly. You discussed 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 new market within 2 to 3 years. That's pricey, however it produces emergency, builds awareness, and validates above-store management. Without it, you remain sluggish and unprofitable.

At Chop Shop, we intentionally constructed 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 team lived. Having the entire group in-market to support stores, hire, and guarantee culture was substantial.

Freddy's Frozen Custard & Steakburgers

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

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

Freddy's Frozen Custard & Steakburgers

Significant Market Milestones Shaping 2026 Expansion

You need equity sponsors who believe in the vision and the team. That's expensive, but it produces important mass, develops awareness, and justifies above-store management.

At Chop Store, we deliberately constructed strong bases in Phoenix and Dallas. That gave us the profitability to hold up against sluggish starts in Houston and Atlanta. And we were fortunate that Dallasour 2nd marketwas also where our team lived. Having the whole team in-market to support shops, hire, and make sure culture was big.

People frequently ignore how important team is to scaling. How have you approached building and scaling your team? This is something I'm really proud of. Our team took all the things we disliked from past jobsfeeling underappreciated, underpaid, growth-stifledand developed the opposite culture here. We emphasize development frame of mind and profession pathing.