Key Regional Milestones Shaping 2026 Expansion

Thank you. And we also have Clinton Anderson, the CEO of Fourth, who will be moderating the discussion with Jason. Jason, how about I let you provide the audience some info about your background and you can also inform them a little bit about Chop Store. And then I'll let you take it from there, Clinton.

My name is Jason Morgan, CEO of Original Chop Shop. We purchased the brand in 2016three unitsand I have actually grown it to 26. After a short stint of attempting to be an accounting professional for about a year and a half, I transitioned into casino home and worked in corporate financing.

I was the very first staff member there after private equity purchased business. Helped grow that from 20 to 150 places, took it public in 2014, and after that left about a year and a half after going public to do this at Chop Shop. My hope is that we can duplicate the success we had at Zos, and we're off to a truly good start.

We're at the counter, we bring the food to the table. It is primarily protein bowlsabout 40 percent of the mix. We also do salads, sandwiches. The secret to the program is we have a beverage component too with fresh-squeezed juices and protein shakes. We do all stables, we do breakfast all day.

Freddy's Frozen Custard & Steakburgers

A little more complicated than a few of the walk-the-line concepts that are out there, however we think we have actually got something pretty unique. We're going to add another store this year and at least four shops next year. So we will be 31 or so shops by the end of next year.

Major Expansion Targets in 2026

Hey, everybody. It's terrific to be with you again. My name is Clinton Anderson. I'm the CEO here at Fourth. I've remained in this role for about six years. Fourth, as much of you understand, is a leading supplier of software solutions to the restaurant and hospitality market. Our objective is to assist our clients succeed in driving success and being efficientmanaging labor, handling stock, and generally supplying them with tools they require to provide their vision.

It's rare to have business that are precious and growing rapidly, that can repeat that success year after year. Jason, one of the factors I was so thrilled to have you join our session is the success at Zos was amazing. I've just met a handful of brands where there was such a strong client affinity for the brand.

And now you're doing the very same thing at Chop Store. When you speak to consumers about Chop Shop, they love the location. They speak about its differentiation. And to be able to take what is a fairly complex concept in terms of delivering a terrific experience for the client, and have the ability to grow that from a few shops to now north of 30 stores next yearit's incredible.

We're going to talk about how to scale a dining establishment service. Every restaurateur I ever speak with has imagine taking one shop, 2 shops, 5 shops, and turning it into something much biggerexpanding across the city, across the state, into several states, and eventually national, even international reach. It's not simple, particularly in today's environment.

It's not an easy time to drive profitability and development at the exact same time. How do you scale it and make it effective? Second, beyond innovation, how do you scale fantastic groups?

Regional Success in Brand Scaling

The first concern I have for you, Jasonlook, you've done this twice now in the dining establishment market. What are some of the lessons you've discovered? What has your experience been in regards to what it requires to actually drive success in expanding dining establishments? Tell me a little about your course, what you experienced along the method, and possibly some of the more difficult lessons you learned.

We talked a 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 an organization. To me, among the essential things, and I feel very fortunate, is that both brand names I have actually been involved with are distinct.

And there's nothing exactly like Chop Store in terms of what we're finishing with a large, diverse menu. Most brand names today are really singularly focused in terms of what they're offering from a foodstuff. I feel like we began at a benefit with both brand names by having something unique that filled a niche nobody else was doing.

A lot of it begins with the brand. Does your brand have something distinct that no one else is doing?

Comparing Franchise ROI Against Growth Data

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

They don't know their breakeven sales. They don't understand how margin improves as sales boost. I've seen so lots of companies where the numbers simply don't work.

Freddy's Frozen Custard & Steakburgers

If you do not have those 2 things, you shouldn't be constructing stores. Yeah, possibly both, right? Due to the fact that as I hear your description, you've highlighted 3 things: execution, brand distinction, and monetary viability. You've got to begin with execution. If you do not have an operating design that works, expanding it simply multiplies issues.

Comparing Investment Models Against Market Trends

Second, you need a compelling brand name or unique concept that resonates with clients. And third, the mathematics needs to work. If you do not comprehend your system economics, your fixed and variable expenses, you may be broadening blind and losing cash. Precisely. And another crucial lesson is about entering brand-new markets.

When we expanded to Dallas, I anticipated new stores to do 5070% of Phoenix sales in the first year. A lot of operators assume new markets will open at complete volume day one. That almost never ever happens. And when the shops open sluggish, however you have actually signed leases and developed a monetary design based on greater volumes, you get overextended.