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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 really fortunate, is that both brand names I've been involved with are special.

And there's nothing exactly like Chop Shop in terms of what we're doing with a big, varied menu. Many brands today are really singularly focused in terms of what they're using from a food product. I seem like we began at an advantage with both brand names by having something special that filled a niche nobody else was doing.

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

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

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

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If you do not have those 2 things, you shouldn't be constructing shops. Yeah, maybe both? Because as I hear your description, you have actually highlighted three things: execution, brand name differentiation, and financial practicality. You've got to start with execution. If you do not have an operating model that works, expanding it simply increases problems.

Second, you require an engaging brand or distinct idea that resonates with customers. And another essential lesson is about going into brand-new markets.

But when we broadened to Dallas, I anticipated new stores to do 5070% of Phoenix sales in the first year. A lot of operators assume new markets will open at full volume the first day. That almost never takes place. And when the stores open sluggish, but you've signed leases and constructed a monetary model based upon higher volumes, you get overextended.

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

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

At Chop Shop, we deliberately developed strong bases in Phoenix and Dallas initially. That offered us the success to hold up against slow starts in Houston and Atlanta. And we were lucky that Dallasour second marketwas also where our group lived. Having the whole group in-market to support stores, hire, and ensure culture was huge.

People typically undervalue how vital team is to scaling. Our group took all the things we hated from previous jobsfeeling underappreciated, underpaid, growth-stifledand constructed the opposite culture here.

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

So you require equity sponsors who think in the vision and the group. Another lesson: you require to open four to six stores in a new market within 2 to 3 years. That's pricey, however it produces emergency, develops awareness, and validates above-store management. Without it, you stay sluggish and unprofitable.

At Chop Shop, we intentionally built strong bases in Phoenix and Dallas initially. That offered us the success to stand up to sluggish starts in Houston and Atlanta. And we were fortunate that Dallasour second marketwas also where our team lived. Having the whole group in-market to support stores, hire, and ensure culture was huge.

Freddy's Frozen Custard & Steakburgers

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

Otherwise, they get rose-colored glasses about success in the home market and presume it will translate quickly. You pointed out anticipating 5070% volumes. That's sobering. I have actually even seen cases where it's simply 2530% at launch. It highlights how crucial capital structure is. Yes. A lot of little development principles like ours count on equity, not financial obligation.

Freddy's Frozen Custard & Steakburgers

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You require equity sponsors who believe in the vision and the group. Another lesson: you need to open four to 6 stores in a new market within 2 to 3 years. That's expensive, however it produces important mass, constructs awareness, and justifies above-store management. Without it, you remain sluggish and unprofitable.

At Chop Shop, we deliberately constructed strong bases in Phoenix and Dallas first. That offered us the profitability to hold up against slow starts in Houston and Atlanta. And we were lucky that Dallasour second marketwas also where our team lived. Having the whole group in-market to support shops, hire, and make sure culture was substantial.

People typically underestimate 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.