Expansion Updates: New Milestones in 2026

Otherwise, they get rose-colored glasses about success in the home market and assume it will translate rapidly. You pointed out anticipating 5070% volumes. That's sobering. I have actually even seen cases where it's simply 2530% at launch. It underscores how vital capital structure is. Yes. The majority of small growth principles like ours count on equity, not financial obligation.

Freddy's Frozen Custard & Steakburgers

So you require equity sponsors who believe in the vision and the team. Another lesson: you need to open 4 to six shops in a brand-new market within two to 3 years. That's expensive, but it creates important mass, constructs awareness, and justifies above-store management. Without it, you stay slow and unprofitable.

Freddy's Frozen Custard & Steakburgers

At Chop Shop, we intentionally built strong bases in Phoenix and Dallas initially. That provided us the success to stand up to sluggish starts in Houston and Atlanta. And we were fortunate that Dallasour 2nd marketwas likewise where our team lived. Having the whole group in-market to support stores, hire, and guarantee culture was big.

Freddy's Frozen Custard & Steakburgers

Hospitality Industry Trends Redefining 2026

Individuals often underestimate how crucial team is to scaling. How have you approached structure and scaling your team? This is something I'm truly happy with. Our team took all the things we disliked from previous jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here. We emphasize development mindset and career pathing.