Key Market Shifts Shaping 2026 Growth

We talked a bit before we started about LinkedIn, and I've got a post teed approximately follow this next week about what the playbook is likepoint by pointfor growing a company. To me, one of the key things, and I feel really lucky, is that both brands I have actually been included with are special.

And there's absolutely nothing precisely like Chop Store in terms of what we're finishing with a large, diverse menu. A lot of brands today are extremely singularly focused in regards to what they're using from a food. I seem like we began at an advantage with both brand names by having something unique that filled a specific niche nobody else was doing.

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

The 2nd thingI came from a finance background, so a lot of my learnings are more finance and data-driven versus a lot of early startup restaurateurs who are innovative types. They enjoy the food, they developed the menu, they constructed the brand.

They do not know their breakeven sales. They do not understand how margin improves as sales boost. They do not understand cash-on-cash returns. I've seen many companies where the numbers just do not work. And yet people say: let's open 10 more. And I'll state: why? It doesn't make cash. Stop. You require to discover a principle that is distinct.

Key Market Shifts for 2026 Growth

If you do not have those two things, you shouldn't be building shops. Yeah, maybe both, right? Because as I hear your description, you have actually highlighted three things: execution, brand distinction, and financial viability. You've got to begin with execution. If you do not have an operating design that works, expanding it just increases problems.

Second, you need an engaging brand name or special idea that resonates with clients. And third, the math needs to work. If you don't comprehend your unit economics, your repaired and variable expenses, you might be expanding blind and losing money. Exactly. And another key lesson is about entering new markets.

When we expanded to Dallas, I expected new stores to do 5070% of Phoenix sales in the very first year. Too lots of operators presume brand-new markets will open at full volume day one.

Otherwise, they get rose-colored glasses about success in the home market and assume it will translate quickly. You pointed out anticipating 5070% volumes. That's sobering. I've even seen cases where it's just 2530% at launch. It underscores how crucial capital structure is. Yes. Most little growth concepts like ours rely on equity, not debt.

Freddy's Frozen Custard & Steakburgers

Is Scaling the Best Investment?

You need equity sponsors who think in the vision and the team. 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 management. Without it, you stay sluggish and unprofitable.

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

Individuals typically undervalue how important team is to scaling. Our team took all the things we hated from previous jobsfeeling underappreciated, underpaid, growth-stifledand constructed the opposite culture here.

Essential Strategies for Expanding Hospitality Brands

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

So you need equity sponsors who think in the vision and the team. Another lesson: you require to open four to six stores in a new market within 2 to three years. That's pricey, however it creates important mass, constructs awareness, and validates above-store leadership. Without it, you remain slow and unprofitable.

At Chop Store, we deliberately constructed strong bases in Phoenix and Dallas. That offered us the success to endure sluggish starts in Houston and Atlanta. And we were fortunate that Dallasour 2nd marketwas also where our group lived. Having the entire team in-market to support shops, hire, and ensure culture was huge.

Freddy's Frozen Custard & Steakburgers

People frequently undervalue how important team is to scaling. How have you approached building and scaling your group? This is something I'm really proud of. Our group took all the things we disliked from past jobsfeeling underappreciated, underpaid, growth-stifledand developed the opposite culture here. We highlight development frame of mind and career pathing.

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 highlights how important capital structure is. Yes. A lot of small growth principles like ours count on equity, not financial obligation.

Freddy's Frozen Custard & Steakburgers

The Benefits of Fast Casual Expansion in 2026

You need equity sponsors who think in the vision and the group. That's pricey, however it produces crucial mass, builds awareness, and justifies above-store leadership.

At Chop Store, we intentionally constructed strong bases in Phoenix and Dallas. That provided us the success to endure sluggish starts in Houston and Atlanta. And we were fortunate that Dallasour second marketwas likewise where our team lived. Having the entire team in-market to support stores, hire, and guarantee culture was huge.

Individuals typically undervalue how vital team is to scaling. Our group took all the things we hated from previous jobsfeeling underappreciated, underpaid, growth-stifledand developed the opposite culture here.