The Benefits of Fast Casual Expansion in 2026

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 service. To me, one of the key things, and I feel really fortunate, is that both brands I've been included with are special.

And there's absolutely nothing precisely like Chop Shop in regards to what we're doing 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 an advantage with both brands by having something distinct that filled a niche nobody else was doing.

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

The second thingI came from a financing background, so a lot of my knowings are more financing and data-driven versus a lot of early start-up restaurateurs who are innovative types. They like the food, they constructed the menu, they constructed the brand.

They don't know their breakeven sales. They do not comprehend how margin enhances as sales increase. They do not understand cash-on-cash returns. I have actually seen numerous companies where the numbers simply don't work. And yet individuals say: let's open 10 more. And I'll state: why? It does not earn money. Stop. You require to find an idea that is distinct.

Comparing Investment ROI Against Growth Trends

If you do not have those 2 things, you shouldn't be developing shops. Because as I hear your description, you have actually highlighted 3 things: execution, brand differentiation, and financial viability.

Second, you need an engaging brand name or unique concept that resonates with clients. And another key lesson is about getting in brand-new markets.

When we broadened to Dallas, I anticipated brand-new shops to do 5070% of Phoenix sales in the first year. Too lots of operators assume brand-new markets will open at complete volume the first day. That practically never happens. And when the shops open sluggish, but you have actually signed leases and built a monetary model based upon higher volumes, you get overextended.

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

Freddy's Frozen Custard & Steakburgers

Steps to Expand Your Dining Brand

So you require equity sponsors who believe in the vision and the group. Another lesson: you need to open 4 to 6 stores in a brand-new market within 2 to 3 years. That's expensive, however it develops emergency, develops awareness, and justifies above-store leadership. Without it, you remain sluggish and unprofitable.

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

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

National Milestones in Brand Expansion

Otherwise, they get rose-colored glasses about success in the home market and assume it will translate rapidly. You mentioned anticipating 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 4 to 6 stores in a new market within 2 to 3 years. That's pricey, but it develops vital mass, builds awareness, and justifies above-store management. Without it, you remain sluggish and unprofitable.

At Chop Store, we intentionally developed strong bases in Phoenix and Dallas initially. That provided us the profitability to withstand sluggish starts in Houston and Atlanta. And we were lucky that Dallasour 2nd marketwas likewise where our group lived. Having the entire group in-market to support shops, hire, and make sure culture was huge.

Freddy's Frozen Custard & Steakburgers

Individuals often ignore how important group is to scaling. Our team took all the things we disliked 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 quickly. You mentioned anticipating 5070% volumes. I have actually even seen cases where it's simply 2530% at launch.

Freddy's Frozen Custard & Steakburgers

National Milestones in Corporate Expansion

You require equity sponsors who think in the vision and the team. Another lesson: you require to open 4 to 6 shops in a brand-new market within two to three years. That's pricey, but it develops vital mass, constructs awareness, and validates above-store leadership. Without it, you stay slow and unprofitable.

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

People typically ignore how critical team 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 previous jobsfeeling underappreciated, underpaid, growth-stifledand developed the opposite culture here. We stress growth state of mind and career pathing.