Strategic Expansion Targets for 2026

And we likewise have Clinton Anderson, the CEO of 4th, who will be moderating the conversation with Jason. Jason, how about I let you provide the audience some information about your background and you can also tell them a little bit about Chop Store.

Thanks Christina. My name is Jason Morgan, CEO of Original Chop Store. I've been doing this for about 9 years now. We bought the brand in 2016three unitsand I've grown it to 26. Prior to this, I have actually invested most of my career in hospitality in some shape or kind. After a brief stint of trying to be an accountant for about a year and a half, I transitioned into gambling establishment property and operated in corporate finance.

I was the very first staff member there after personal equity bought the company. Helped grow that from 20 to 150 areas, took it public in 2014, and after that left about a year and a half after going public to do this at Chop Store. My hope is that we can replicate the success we had at Zos, and we're off to a really great start.

We're at the counter, we bring the food to the table. It is primarily protein bowlsabout 40 percent of the mix. We also do salads, sandwiches. The key to the program is we have a beverage part also with fresh-squeezed juices and protein shakes. We do all stables, we do breakfast throughout the day.

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A little more complex than a few of the walk-the-line ideas that are out there, however we think we've got something pretty unique. We're going to add another store this year and at least 4 shops next year. So we will be 31 or so stores by the end of next year.

Comparing Franchise Models Against Market Data

I've been in this function for about six years. Fourth, as numerous of you know, is a leading company of software services to the restaurant and hospitality industry. Our objective is to help our clients be successful in driving success and being efficientmanaging labor, handling inventory, and basically offering them with tools they need to deliver their vision.

It's unusual to have business that are beloved and growing rapidly, that can repeat that success year after year. Jason, among the factors I was so ecstatic to have you join our session is the success at Zos was remarkable. I've only fulfilled a handful of brand names where there was such a strong consumer affinity for the brand name.

When you talk to clients about Chop Shop, they enjoy the location. And to be able to take what is a relatively complicated concept in terms of providing a fantastic experience for the client, and be able to grow that from a few shops to now north of 30 shops next yearit's amazing.

We're going to discuss how to scale a restaurant organization. Every restaurateur I ever talk with has dreams of taking one shop, 2 shops, five stores, and turning it into something much biggerexpanding across the city, across the state, into several states, and ultimately nationwide, even global reach. It's not easy, specifically in today's environment.

It's not a simple time to drive success and growth at the same time. How do you scale it and make it effective? Second, beyond technology, how do you scale excellent teams?

Top Franchise Opportunities in 2026

The very first question I have for you, Jasonlook, you've done this two times now in the restaurant industry. What has your experience been in terms of what it takes to actually drive success in expanding dining establishments?

We talked a little bit before we began about LinkedIn, and I have actually got a post teed approximately follow this next week about what the playbook is likepoint by pointfor growing an organization. To me, one of the key things, and I feel extremely fortunate, is that both brand names I have actually been involved with are special.

And there's nothing precisely like Chop Shop in terms of what we're finishing with a big, varied menu. The majority of brand names today are really singularly focused in regards to what they're providing from a food product. I feel like we started at a benefit with both brands by having something unique that filled a niche nobody else was doing.

Due to the fact that it's simply more difficult to stick out when there are 10, 20, 50 ideas within a 2- or three-mile radius attempting to do the exact same thing. So a great deal of it starts with the brand name. Does your brand have something unique that nobody else is doing? That's unusual.

Analyzing Franchise ROI Against Market Trends

The 2nd thingI originated from a financing background, so a lot of my knowings are more finance and data-driven versus a lot of early startup restaurateurs who are innovative types. They like the food, they built the menu, they developed the brand. I probably could not do that from scratch. If you offered me something that has all those parts in place, I can take it from there and put the playbook in place.

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

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If you don't have those two things, you should not be constructing shops. Because as I hear your description, you've highlighted three things: execution, brand name differentiation, and financial viability.

Regional Milestones in Brand Expansion

Second, you require a compelling brand or distinct idea that resonates with customers. And 3rd, the math has to work. If you don't understand your unit economics, your repaired and variable costs, you may be broadening blind and losing money. Exactly. And another essential lesson has to do with going into new markets.

When we expanded to Dallas, I anticipated brand-new shops to do 5070% of Phoenix sales in the first year. Too lots of operators presume brand-new markets will open at full volume the first day. That practically never ever occurs. And when the stores open slow, however you've signed leases and developed a monetary design based on higher volumes, you get overextended.