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We talked a bit before we started about LinkedIn, and I've got a post teed as much as follow this next week about what the playbook is likepoint by pointfor growing a business. To me, one of the crucial things, and I feel very fortunate, is that both brands I've been included with are distinct.
And there's absolutely nothing precisely like Chop Store in regards to what we're making with a large, varied menu. Most brands today are extremely singularly focused in terms of what they're using from a food item. I feel like we started at an advantage with both brands by having something special that filled a specific niche no one else was doing.
Because it's just harder to stand apart when there are 10, 20, 50 concepts within a two- or three-mile radius trying to do the specific very same thing. So a lot of it starts with the brand. Does your brand name have something distinct that no one else is doing? That's unusual.
The second thingI originated from a financing background, so a lot of my knowings are more finance and data-driven versus a great deal of early startup restaurateurs who are imaginative types. They enjoy the food, they built the menu, they developed the brand name. I probably couldn't do that from scratch. If you gave me something that has all those elements in place, I can take it from there and put the playbook in place.
They do not know their breakeven sales. They do not understand how margin improves as sales increase. I have actually seen so lots of companies where the numbers simply don't work.
Steps to Expand Your Restaurant Concept
If you do not have those two things, you shouldn't be building shops. Yeah, perhaps both, right? Since as I hear your description, you've highlighted three things: execution, brand differentiation, and financial viability. You have actually got to begin with execution. If you do not have an operating model that works, expanding it simply multiplies problems.
Second, you require a compelling brand or distinct idea that resonates with clients. And third, the math has to work. If you don't understand your system economics, your fixed and variable expenses, you may be expanding blind and losing cash. Exactly. And another key lesson is about going into new markets.
When we broadened to Dallas, I expected new stores to do 5070% of Phoenix sales in the first year. Too many operators assume brand-new markets will open at complete volume day one.
Otherwise, they get rose-colored glasses about success in the home market and assume it will translate quickly. You mentioned expecting 5070% volumes. I've even seen cases where it's just 2530% at launch.
Significant Regional Milestones Shaping 2026 Expansion
You need equity sponsors who believe in the vision and the team. That's expensive, but it produces important mass, builds awareness, and validates above-store management.
And we were lucky that Dallasour 2nd marketwas also where our team lived. Having the whole team in-market to support shops, hire, and ensure culture was huge.
Individuals frequently undervalue how critical group is to scaling. How have you approached structure and scaling your team? This is something I'm really pleased with. Our team took all the things we hated from past jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here. We emphasize growth mindset and career pathing.
Regional Milestones in Corporate Expansion
Otherwise, they get rose-colored glasses about success in the home market and presume it will translate quickly. You pointed out anticipating 5070% volumes. I have actually even seen cases where it's just 2530% at launch.
You need equity sponsors who think in the vision and the team. Another lesson: you need to open 4 to six stores in a new market within 2 to 3 years. That's costly, however it creates emergency, builds awareness, and validates above-store management. Without it, you remain slow and unprofitable.
And we were lucky that Dallasour second marketwas also where our team lived. Having the whole group in-market to support stores, hire, and ensure culture was substantial.
People frequently underestimate how critical group is to scaling. How have you approached building and scaling your group? This is something I'm truly pleased with. Our team took all the things we disliked from past jobsfeeling underappreciated, underpaid, growth-stifledand constructed the opposite culture here. We stress development 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've even seen cases where it's simply 2530% at launch.
Top Benefits of Fast Casual Franchising in 2026
You require equity sponsors who believe in the vision and the group. That's expensive, but it develops vital mass, constructs awareness, and validates above-store management.
At Chop Shop, we deliberately constructed strong bases in Phoenix and Dallas initially. That offered us the profitability to stand up to sluggish starts in Houston and Atlanta. And we were fortunate that Dallasour second marketwas also where our group lived. Having the entire group in-market to support shops, hire, and guarantee culture was big.
Individuals typically ignore how important group is to scaling. Our team took all the things we hated from previous jobsfeeling underappreciated, underpaid, growth-stifledand constructed the opposite culture here.
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