Significant Regional Shifts Shaping 2026 Expansion

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 a business. To me, one of the crucial things, and I feel very lucky, is that both brands I've been involved with are distinct.

And there's nothing exactly like Chop Store in terms of what we're making with a large, diverse menu. Many brands today are really singularly focused in terms of what they're using from a food. I feel like we started at a benefit with both brands by having something unique that filled a specific niche nobody else was doing.

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

The second thingI came from a finance background, so a lot of my learnings are more finance and data-driven versus a lot of early start-up restaurateurs who are innovative types. They love the food, they constructed the menu, they built the brand name.

They do not understand their breakeven sales. They do not comprehend how margin improves as sales increase. They don't understand cash-on-cash returns. I have actually seen numerous business where the numbers just do not work. And yet individuals state: let's open 10 more. And I'll say: why? It doesn't make money. Stop. You require to discover a concept that is special.

Why Is Scaling a Wise Investment?

If you don't have those 2 things, you should not be developing shops. Since as I hear your description, you've highlighted 3 things: execution, brand name distinction, and monetary practicality.

Second, you need a compelling brand name or unique principle that resonates with consumers. And another key lesson is about going into new markets.

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

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 have actually even seen cases where it's just 2530% at launch.

Freddy's Frozen Custard & Steakburgers

Corporate Growth Targets for 2026

You require equity sponsors who think in the vision and the team. Another lesson: you require to open four to six stores in a new market within 2 to 3 years. That's costly, but it creates emergency, develops awareness, and justifies above-store management. Without it, you remain sluggish and unprofitable.

And we were fortunate that Dallasour second marketwas likewise where our group lived. Having the whole team in-market to support shops, hire, and make sure culture was big.

People frequently undervalue how crucial team is to scaling. Our group took all the things we disliked from previous jobsfeeling underappreciated, underpaid, growth-stifledand developed the opposite culture here.

Comparing Investment ROI Against Growth Trends

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

So you need equity sponsors who believe in the vision and the team. Another lesson: you require to open 4 to 6 stores in a new market within 2 to 3 years. That's pricey, but it develops emergency, builds awareness, and justifies above-store leadership. Without it, you remain slow and unprofitable.

And we were lucky that Dallasour 2nd marketwas also where our group lived. Having the entire team in-market to support shops, hire, and make sure culture was huge.

Freddy's Frozen Custard & Steakburgers

People typically undervalue how critical team is to scaling. How have you approached building and scaling your group? This is something I'm actually proud of. Our team took all the important things we hated from previous jobsfeeling underappreciated, underpaid, growth-stifledand constructed the opposite culture here. We emphasize growth frame of mind and profession pathing.

Otherwise, they get rose-colored glasses about success in the home market and assume it will translate rapidly. You pointed out anticipating 5070% volumes. That's sobering. I have actually even seen cases where it's simply 2530% at launch. It underscores how vital capital structure is. Yes. Many small development concepts like ours depend on equity, not debt.

Freddy's Frozen Custard & Steakburgers

Steps to Scale Your Dining Concept

You need equity sponsors who believe in the vision and the group. Another lesson: you need to open four to six shops in a brand-new market within 2 to 3 years. That's costly, however it creates emergency, develops awareness, and justifies above-store management. Without it, you stay sluggish and unprofitable.

And we were lucky that Dallasour second marketwas likewise where our team lived. Having the entire team in-market to support shops, hire, and guarantee culture was substantial.

Individuals typically undervalue how crucial group is to scaling. How have you approached building and scaling your group? This is something I'm truly happy of. Our group took all the things we disliked from previous jobsfeeling underappreciated, underpaid, growth-stifledand developed the opposite culture here. We stress development mindset and profession pathing.