Corporate Updates: New Milestones in 2026

We talked a bit before we began about LinkedIn, and I've 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 essential things, and I feel very fortunate, is that both brands I've been included with are unique.

And there's nothing exactly like Chop Store in terms of what we're doing with a big, varied menu. A lot of brand names today are really singularly focused in regards to what they're using from a foodstuff. I feel like we started at a benefit with both brands by having something unique that filled a niche nobody else was doing.

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

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

They do not know their breakeven sales. They do not comprehend how margin improves as sales increase. I have actually seen so lots of business where the numbers simply do not work.

Major Growth Targets in 2026

If you do not have those two things, you shouldn't be developing shops. Yeah, maybe both, right? Since as I hear your description, you've highlighted 3 things: execution, brand differentiation, and financial viability. You've got to begin with execution. If you do not have an operating model that works, broadening it simply multiplies problems.

Second, you require a compelling brand name or special principle that resonates with consumers. And another essential lesson is about entering brand-new markets.

But when we broadened to Dallas, I expected brand-new shops to do 5070% of Phoenix sales in the very first year. A lot of operators assume brand-new markets will open at complete volume the first day. That nearly never happens. And when the stores open slow, however you've signed leases and built a financial design based on higher volumes, you get overextended.

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

Freddy's Frozen Custard & Steakburgers

Best Investment Prospects to Watch

You require equity sponsors who think in the vision and the group. That's pricey, but it develops important mass, constructs awareness, and justifies above-store leadership.

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

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

Steps to Expand a Restaurant Brand

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

You require equity sponsors who think in the vision and the group. That's pricey, however it produces important mass, constructs awareness, and validates above-store leadership.

At Chop Store, we deliberately built strong bases in Phoenix and Dallas. That provided us the profitability to stand up to slow starts in Houston and Atlanta. And we were fortunate that Dallasour 2nd marketwas likewise where our team lived. Having the entire group in-market to support stores, hire, and make sure culture was huge.

Freddy's Frozen Custard & Steakburgers

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

Otherwise, they get rose-colored glasses about success in the home market and assume it will equate rapidly. You pointed out expecting 5070% volumes. That's sobering. I've even seen cases where it's just 2530% at launch. It highlights how crucial capital structure is. Yes. Many little growth ideas like ours depend on equity, not debt.

Freddy's Frozen Custard & Steakburgers

Regional Success in Corporate Scaling

So you require equity sponsors who think in the vision and the team. Another lesson: you need to open 4 to 6 stores in a new market within 2 to three years. That's pricey, but it develops critical mass, builds awareness, and justifies above-store management. Without it, you stay sluggish and unprofitable.

At Chop Shop, we intentionally built strong bases in Phoenix and Dallas. That gave us the success to hold up against sluggish 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 stores, hire, and guarantee culture was huge.

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