Major Expansion Targets for 2026

And we likewise have Clinton Anderson, the CEO of 4th, who will be moderating the discussion with Jason. Jason, how about I let you provide the audience some information about your background and you can also tell them a little bit about Chop Store.

Thanks Christina. My name is Jason Morgan, CEO of Original Chop Shop. I have actually been doing this for about 9 years now. We purchased the brand in 2016three unitsand I've grown it to 26. Prior to this, I've spent the majority of my profession in hospitality in some shape or type. After a short stint of trying to be an accounting professional for about a year and a half, I transitioned into casino residential or commercial property and operated in corporate finance.

I was the first staff member there after personal equity purchased business. Assisted 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 replicate the success we had at Zos, and we're off to an actually excellent start.

We're at the counter, we bring the food to the table. The key to the program is we have a beverage component as well with fresh-squeezed juices and protein shakes.

Freddy's Frozen Custard & Steakburgers

A little more complicated than some of the walk-the-line concepts that are out there, but we believe we've got something pretty unique. We're going to add another store this year and a minimum of four stores next year. We will be 31 or so shops by the end of next year.

Regional Success in Corporate Scaling

I have actually been in this function for about six years. Fourth, as many of you understand, is a leading company of software application solutions to the dining establishment and hospitality industry. Our goal is to assist our clients be effective in driving success and being efficientmanaging labor, managing stock, and essentially providing them with tools they require to provide their vision.

It's rare to have companies that are cherished and growing rapidly, that can duplicate that success every year. Jason, among the factors I was so thrilled to have you join our session is the success at Zos was remarkable. I've only fulfilled a handful of brand names where there was such a strong consumer affinity for the brand.

And now you're doing the very same thing at Chop Store. When you speak to consumers about Chop Store, they enjoy the place. They speak about its differentiation. And to be able to take what is a reasonably complex concept in regards to providing an excellent experience for the client, and be able to grow that from a couple of stores to now north of 30 stores next yearit's remarkable.

We're going to talk about how to scale a dining establishment service. Every restaurateur I ever talk to has dreams of taking one store, two shops, five shops, and turning it into something much biggerexpanding throughout the city, throughout the state, into numerous states, and eventually nationwide, even worldwide reach. It's not easy, specifically in today's environment.

Labor is tough. Stock costs remain high. It's not a simple time to drive profitability and development at the exact same time. We're thankful to have you here today, Jason, due to the fact that we're going to dig into that subject. The questions are going to be actually around: how do you grow a service? How do you scale it and make it successful? How do you duplicate early success? And from there, after we discuss your experience and the lessons you've discovered, we 'd enjoy to then state: well, look, how could innovation assist? How can you use technology as a multiplier to duplicate early success to significant success? Second, beyond technology, how do you scale terrific groups? And finally, AI.

Restaurant Sector Trends Shaping 2026

The very first question I have for you, Jasonlook, you have actually done this two times now in the restaurant industry. What has your experience been in terms of what it takes to truly drive success in broadening dining establishments?

We talked a 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 an organization. To me, one of the crucial things, and I feel extremely lucky, is that both brands I've been included with are distinct.

And there's nothing precisely like Chop Store in regards to what we're doing with a large, varied menu. Many brands today are very singularly focused in regards to what they're offering from a foodstuff. I seem like we began at a benefit with both brands by having something unique that filled a niche no one else was doing.

Due to the fact that it's just more difficult to stand apart when there are 10, 20, 50 concepts within a 2- or three-mile radius trying to do the specific same thing. 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.

Steps to Expand a Dining Brand

The 2nd thingI originated from a financing background, so a great deal of my knowings are more financing and data-driven versus a great deal of early start-up restaurateurs who are innovative types. They love the food, they constructed the menu, they built the brand name. I most likely could not do that from scratch. If you gave me something that has all those parts in place, I can take it from there and put the playbook in place.

They do not know their breakeven sales. They don't comprehend how margin improves as sales increase. They don't comprehend cash-on-cash returns. I have actually seen so many companies where the numbers simply do not work. And yet individuals say: let's open 10 more. And I'll state: why? It doesn't make cash. Stop. You require to discover a principle that is unique.

Freddy's Frozen Custard & Steakburgers

If you do not have those two things, you should not be constructing shops. Yeah, maybe both, right? Due to the fact that as I hear your description, you have actually highlighted 3 things: execution, brand name distinction, and financial viability. You've got to begin with execution. If you don't have an operating model that works, expanding it simply multiplies problems.

Fast Casual Industry Growth

Second, you require a compelling brand or unique idea that resonates with customers. And third, the mathematics has to work. If you do not comprehend your unit economics, your repaired and variable expenses, you might be expanding blind and losing cash. Exactly. And another crucial lesson has to do with going into new markets.

When we broadened to Dallas, I expected new shops to do 5070% of Phoenix sales in the very first year. Too numerous operators presume new markets will open at complete volume day one.