Strategic Expansion Targets in 2026

Growing a dining establishment from one or two areas into a multi-unit chain is the dream of lots of operators., to unpack the lessons discovered from scaling 2 effective restaurant brands.

Many brands go after growth before the fundamental engine is strong. As Jason noted, "growth of an ineffective operating model is a disaster." Unless you currently have actually: A distinguished brand name that resonates A tested unit economics model And functional rigor you risk watering down quality, overspending, and striking underperformance faster than you expect.

Freddy's Frozen Custard & Steakburgers

Jason shared that lots of operators don't understand their break-even sales or limited margin gain as volume boosts, and yet they green light brand-new systems. This isn't simply theory.

Hospitality Sector Shifts Shaping 2026

Brand names with clear cost exposure and disciplined expansion are weathering inflation far much better than those chasing volume for its own sake. When expansion is developed on nontransparent presumptions, you're essentially gambling with capital. From the webinar, Jason and Clinton's discussion emerged 3 non-negotiable pillars for scaling well. Numerous brand names can talk differentiation, however few perform consistently across markets.

Guaranteeing your operating model genuinely works before expansion is the distinction between scaling success and increasing inadequacy. Jason stressed that both ChopShop and his previous brand, Zos Kitchen, prospered because they used something few others were doing. When your idea is too generic (burgers, pizza, tacos), you complete on margin alone.

The math must operate at the first day, month 12, and year three. Jason discussed cash-on-cash returns, breakeven volumes, and margin improvement curves. Without clear monetary benchmarks, expansion becomes uncertainty. Assuming brand-new markets will open at full-blown, home-market volume is among the riskiest errors a chain can make. In the webinar, Jason shared that in Dallas, ChopShop expected new systems to hit 50-70% of Phoenix volumes.

Freddy's Frozen Custard & Steakburgers

Profitable Hospitality Ventures Coming in 2026

Some lessons from Jason's experience: Accept that new stores will open gradually. Be capitalized with a buffer to absorb early losses. In a brand-new market, goal to open 4-6 shops within a 2-3 year period to develop awareness and justify above-store assistance. Seed market leadership and move tested operators into new markets to "live it daily." These strategies help prevent overextending early and allow regional brand momentum to construct naturally.

Jason described how ChopShop developed career courses from per hour functions all the method to local management. A few of their key individuals metrics: Per hour turnover around 97% (roughly half what industry norms frequently report) GM period exceeding 4.5 years Over 80% of GMs promoted internally They also developed "AGM-in-training" functions to prepare brand-new managers before a shop opens, a smarter, proactive way to grow bench strength.

It's rare (and somewhat adventurous) to make an IT lead your fourth hire, but that's exactly what Jason did at ChopShop. Their tech stack enabled the service to feel like a 150-unit brand name even when they had just 18 locations, a resilience benefit when COVID struck. Key tech financial investments included: A modern POS (instead of legacy systems) Back-office systems and inventory tools A data warehouse (Mirus) to generate genuine reporting Digital buying and loyalty integrations (today 74% of sales are digital, and 40% carry loyalty IDs) As highlights, innovation is no longer optional, it's how operators scale predictably, handle costs, and reduce threat.

Without a full view of cost structure, AUV can be misleading. If you do not fund early ramp losses, you may be required to retreat. If growth outmatches your bench, quality deteriorates. Waiting to "get bigger" before constructing systems is a frequent mistake. Scaling isn't just about store count, it has to do with growing a company that keeps brand identity, quality, and purpose.

Key Regional Shifts for 2026 Expansion

It's much easier to expand when growth is grounded in clarity, rigor, and a people-first principles.

Our session is all about the growth playbook for restaurant CEOs with an interesting guest speaker I will present for a short time. And just as people are joining and signing on, I'll use this time to cover a fast few housekeeping notes.