Expansion News: New Milestones in 2026

We talked a little bit before we started 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, among the key things, and I feel very lucky, is that both brands I have actually been involved with are distinct.

And there's absolutely nothing precisely like Chop Store in terms of what we're doing with a big, diverse menu. The majority of brands today are really singularly focused in terms of what they're offering from a food product. I feel like we began at an advantage with both brands by having something distinct that filled a specific niche no one else was doing.

Since 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 precise same thing. So a great deal of it starts with the brand. Does your brand name have something unique that nobody else is doing? That's unusual.

The 2nd thingI came from a finance background, so a lot of my learnings are more finance and data-driven versus a lot of early startup restaurateurs who are creative types. They love the food, they developed the menu, they developed the brand.

They do not know their breakeven sales. They don't understand how margin enhances as sales increase. I've seen so numerous business where the numbers just do not work.

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If you do not have those two things, you should not be developing shops. Due to the fact that as I hear your description, you have actually highlighted three things: execution, brand differentiation, and monetary practicality.

Second, you require a compelling brand name or distinct principle that resonates with clients. And 3rd, the mathematics has to work. If you do not comprehend your system economics, your repaired and variable costs, you may be expanding blind and losing cash. Precisely. And another key lesson is about going into brand-new markets.

When we expanded to Dallas, I anticipated new shops to do 5070% of Phoenix sales in the very first year. Too numerous 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 pointed out expecting 5070% volumes. That's sobering. I've even seen cases where it's just 2530% at launch. It underscores how crucial capital structure is. Yes. Most little development concepts like ours rely on equity, not debt.

Freddy's Frozen Custard & Steakburgers

The Benefits of Fast Casual Franchising in 2026

So you require equity sponsors who think in the vision and the group. Another lesson: you need to open 4 to 6 shops in a brand-new market within two to 3 years. That's pricey, but it develops critical mass, builds awareness, and validates above-store leadership. Without it, you remain sluggish and unprofitable.

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

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

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Otherwise, they get rose-colored glasses about success in the home market and assume it will equate rapidly. You discussed anticipating 5070% volumes. That's sobering. I've even seen cases where it's simply 2530% at launch. It highlights how crucial capital structure is. Yes. Most small development ideas like ours rely on equity, not debt.

You require equity sponsors who believe in the vision and the group. That's pricey, but it creates crucial mass, develops awareness, and validates above-store management.

And we were fortunate that Dallasour 2nd marketwas also where our group lived. Having the entire group in-market to support stores, hire, and ensure culture was big.

Freddy's Frozen Custard & Steakburgers

People often ignore how critical team is to scaling. Our group took all the things we disliked from past jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here.

Otherwise, they get rose-colored glasses about success in the home market and presume it will equate quickly. You pointed out expecting 5070% volumes. I've even seen cases where it's simply 2530% at launch.

Freddy's Frozen Custard & Steakburgers

National Milestones in Brand Scaling

So you require equity sponsors who think in the vision and the group. Another lesson: you need to open 4 to six shops in a brand-new market within 2 to 3 years. That's pricey, however it produces emergency, develops awareness, and justifies above-store management. Without it, you remain slow and unprofitable.

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

People typically underestimate how important team is to scaling. How have you approached structure and scaling your team? This is something I'm actually happy with. Our group took all the things we disliked from previous jobsfeeling underappreciated, underpaid, growth-stifledand developed the opposite culture here. We emphasize development state of mind and profession pathing.