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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 company. To me, among the key things, and I feel extremely 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 making with a big, varied menu. Most brands today are very singularly focused in terms of what they're using from a food. I feel like we started at a benefit with both brand names by having something distinct that filled a niche no one else was doing.

Because it's just more difficult to stick out when there are 10, 20, 50 concepts within a two- or three-mile radius attempting to do the exact same thing. So a great deal of it begins with the brand name. Does your brand have something unique that nobody else is doing? That's uncommon.

The 2nd thingI originated from a financing background, so a great deal of my knowings are more finance and data-driven versus a lot of early start-up restaurateurs who are innovative types. They enjoy the food, they built 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 parts in location, I can take it from there and put the playbook in place.

They do not know their breakeven sales. They do not comprehend how margin enhances as sales increase. I've seen so lots of companies where the numbers simply don't work.

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If you don't have those 2 things, you shouldn't be constructing stores. Yeah, possibly both? Because as I hear your description, you've highlighted three things: execution, brand name distinction, and monetary practicality. You have actually got to start with execution. If you don't have an operating model that works, broadening it simply increases problems.

Second, you need a compelling brand or distinct concept that resonates with customers. And 3rd, the math needs to work. If you do not comprehend your unit economics, your repaired and variable expenses, you might be broadening blind and losing cash. Exactly. And another key lesson is about getting in brand-new markets.

When we expanded to Dallas, I expected brand-new shops to do 5070% of Phoenix sales in the very first year. Too lots of operators assume brand-new markets will open at full 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. I've even seen cases where it's simply 2530% at launch.

Freddy's Frozen Custard & Steakburgers

Regional Milestones in Brand Expansion

You require equity sponsors who believe in the vision and the group. That's costly, however it produces important mass, builds awareness, and justifies above-store management.

At Chop Store, we deliberately developed strong bases in Phoenix and Dallas. That offered us the profitability to hold up against slow starts in Houston and Atlanta. And we were lucky that Dallasour 2nd marketwas also where our group lived. Having the entire team in-market to support shops, hire, and ensure culture was substantial.

Individuals typically underestimate how important team is to scaling. Our team took all the things we disliked from past jobsfeeling underappreciated, underpaid, growth-stifledand developed 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 pointed out anticipating 5070% volumes. That's sobering. I have actually even seen cases where it's just 2530% at launch. It highlights how vital capital structure is. Yes. Most little development concepts like ours depend on equity, not financial obligation.

So you require equity sponsors who think in the vision and the group. Another lesson: you need to open four to six shops in a new market within 2 to 3 years. That's costly, however it creates critical mass, builds awareness, and justifies above-store leadership. Without it, you remain slow and unprofitable.

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

Freddy's Frozen Custard & Steakburgers

People often undervalue how important group is to scaling. Our team took all the things we hated from previous 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 rapidly. You mentioned anticipating 5070% volumes. That's sobering. I have actually even seen cases where it's just 2530% at launch. It highlights how critical capital structure is. Yes. A lot of small growth principles like ours depend on equity, not debt.

Freddy's Frozen Custard & Steakburgers

Leading Investment Opportunities in 2026

You require equity sponsors who think in the vision and the team. Another lesson: you need to open four to 6 stores in a brand-new market within 2 to 3 years. That's costly, however it develops emergency, constructs awareness, and justifies above-store leadership. Without it, you remain slow and unprofitable.

At Chop Shop, we intentionally constructed strong bases in Phoenix and Dallas. That gave us the profitability to withstand sluggish starts in Houston and Atlanta. And we were fortunate that Dallasour second marketwas also where our team lived. Having the whole team in-market to support shops, hire, and make sure culture was big.

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