Significant Market Milestones for 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 details about your background and you can also inform them a little bit about Chop Shop. And after that I'll let you take it from there, Clinton.

My name is Jason Morgan, CEO of Original Chop Store. We bought the brand in 2016three unitsand I have actually grown it to 26. After a short stint of trying to be an accountant for about a year and a half, I transitioned into gambling establishment property and worked in business financing.

I was the first worker there after private equity purchased the business. Helped grow that from 20 to 150 places, took it public in 2014, and then left about a year and a half after going public to do this at Chop Store. My hope is that we can replicate 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 likewise do salads, sandwiches. The key to the program is we have a beverage element also with fresh-squeezed juices and protein shakes. We do all stables, we do breakfast all the time.

Freddy's Frozen Custard & Steakburgers

A little more complex than a few of the walk-the-line ideas that are out there, however we believe we have actually got something quite special. We're going to include another store this year and at least four shops next year. So we will be 31 or two stores by the end of next year.

Major Growth Targets in 2026

I've been in this function for about six years. Fourth, as numerous of you understand, is a leading company of software application options to the restaurant and hospitality industry. Our objective is to help our customers be successful in driving success and being efficientmanaging labor, managing inventory, and basically supplying them with tools they need to provide their vision.

It's uncommon to have companies that are cherished and growing quickly, that can repeat that success every year. Jason, one of the reasons 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 exact same thing at Chop Store. When you speak to customers 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 a terrific experience for the consumer, and be able to grow that from a couple of shops to now north of 30 shops next yearit's fantastic.

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

It's not a simple time to drive profitability and growth at the very same time. How do you scale it and make it successful? Second, beyond technology, how do you scale great groups?

Steps to Scale a Dining Concept

The first concern I have for you, Jasonlook, you have actually done this twice now in the restaurant industry. What are a few of the lessons you've learned? What has your experience remained in terms of what it takes to truly drive success in broadening restaurants? Inform me a little about your path, what you experienced along the way, and possibly a few of the harder lessons you discovered.

We talked a little 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 a service. To me, one of the crucial things, and I feel really fortunate, is that both brands I've been involved with are special.

And there's nothing precisely like Chop Shop in terms of what we're doing with a large, diverse menu. The majority of brands today are extremely singularly focused in terms of what they're providing from a food. I feel like we started at a benefit with both brands by having something special that filled a specific niche nobody else was doing.

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

Corporate Updates: New Milestones in 2026

The second thingI came from a financing 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 constructed the brand. I most likely couldn't do that from scratch. However if you provided me something that has all those components in place, I can take it from there and put the playbook in location.

They don't understand their breakeven sales. They don't understand how margin improves as sales increase. They do not comprehend cash-on-cash returns. I've seen numerous business where the numbers just do not work. And yet people say: let's open 10 more. And I'll say: why? It does not generate income. Stop. You need to find a principle that is special.

Freddy's Frozen Custard & Steakburgers

If you don't have those two things, you should not be building shops. Yeah, perhaps both? Because as I hear your description, you've highlighted 3 things: execution, brand distinction, and monetary practicality. You have actually got to start with execution. If you don't have an operating model that works, expanding it just multiplies issues.

Is Scaling the Best Move?

Second, you require an engaging brand name or distinct concept that resonates with clients. And another crucial lesson is about going into brand-new markets.

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