Quick Service Industry Trends for 2026

We talked a little bit before we started about LinkedIn, and I have actually got a post teed as much as follow this next week about what the playbook is likepoint by pointfor growing an organization. To me, one of the essential things, and I feel extremely lucky, is that both brands I have actually been involved with are unique.

And there's nothing precisely like Chop Shop in regards to what we're making with a big, varied menu. Most brands today are very singularly focused in regards to what they're offering from a food item. I seem like we started at a benefit with both brands by having something distinct that filled a specific niche nobody else was doing.

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

The second thingI came from a financing background, so a lot of my learnings are more finance and data-driven versus a lot of early start-up restaurateurs who are innovative types. They love the food, they built the menu, they developed the brand name.

They do not understand their breakeven sales. They do not comprehend how margin enhances as sales increase. They do not understand cash-on-cash returns. I've seen many companies where the numbers just don't work. And yet people state: let's open 10 more. And I'll state: why? It doesn't generate income. Stop. You need to find a concept that is unique.

Corporate Growth Targets in 2026

If you do not have those 2 things, you shouldn't be building stores. Due to the fact that as I hear your description, you have actually highlighted 3 things: execution, brand name differentiation, and monetary practicality.

Second, you need a compelling brand name or unique concept that resonates with customers. And third, the mathematics has to work. If you do not understand your unit economics, your fixed and variable costs, you may be broadening blind and losing cash. Precisely. And another crucial lesson is about entering new markets.

When we expanded to Dallas, I expected new stores to do 5070% of Phoenix sales in the first year. Too numerous operators assume new markets will open at full volume day one. That practically never occurs. And when the stores open slow, however you have actually signed leases and developed a financial model based upon greater volumes, you get overextended.

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

Freddy's Frozen Custard & Steakburgers

Analyzing Investment ROI Against Growth Data

So you need equity sponsors who believe in the vision and the group. Another lesson: you need to open 4 to six stores in a new market within 2 to 3 years. That's costly, however it produces emergency, builds awareness, and validates above-store leadership. Without it, you remain slow and unprofitable.

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

Individuals frequently ignore how critical team is to scaling. Our team took all the things we disliked from previous jobsfeeling underappreciated, underpaid, growth-stifledand developed the opposite culture here.

Is Scaling the Best Investment?

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

You need equity sponsors who think in the vision and the group. That's costly, but it produces important mass, builds awareness, and validates above-store management.

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

Freddy's Frozen Custard & Steakburgers

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

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

Freddy's Frozen Custard & Steakburgers

Key Market Milestones Shaping 2026 Expansion

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

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

People typically ignore how vital group is to scaling. How have you approached building and scaling your team? This is something I'm really pleased with. Our team took all the things we disliked from past jobsfeeling underappreciated, underpaid, growth-stifledand developed the opposite culture here. We emphasize development mindset and career pathing.