Hospitality Industry Shifts Shaping 2026

We talked a little bit before we started 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 business. To me, among the crucial things, and I feel very lucky, is that both brand names I've been included with are unique.

And there's nothing exactly like Chop Store in terms of what we're making with a big, varied menu. The majority of brands today are really singularly focused in terms of what they're providing from a food. I seem like we began at an advantage with both brand names by having something distinct that filled a niche nobody else was doing.

Since it's simply harder to stick out when there are 10, 20, 50 ideas within a 2- or three-mile radius trying to do the exact very same thing. A lot of it starts with the brand name. Does your brand name have something unique that no one else is doing? That's rare.

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

They do not know their breakeven sales. They do not understand how margin enhances as sales boost. I have actually seen so many business where the numbers just don't work.

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

Second, you need a compelling brand name or unique principle that resonates with consumers. And another crucial lesson is about entering new markets.

But when we expanded to Dallas, I anticipated brand-new stores to do 5070% of Phoenix sales in the very first year. Too many operators assume new markets will open at full volume the first day. That nearly never takes place. And when the shops open slow, however you've signed leases and built a monetary model based on greater volumes, you get overextended.

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

Freddy's Frozen Custard & Steakburgers

Strategic Growth Targets in 2026

You require equity sponsors who think in the vision and the team. That's costly, but it creates crucial mass, develops awareness, and validates above-store management.

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

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

Key Market Shifts Shaping 2026 Growth

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

You need equity sponsors who think in the vision and the group. Another lesson: you need to open 4 to six stores in a new market within 2 to three years. That's costly, but it creates emergency, builds awareness, and justifies above-store leadership. Without it, you stay slow and unprofitable.

At Chop Shop, we intentionally built strong bases in Phoenix and Dallas initially. That gave us the profitability to endure slow starts in Houston and Atlanta. And we were lucky that Dallasour 2nd marketwas also where our team lived. Having the entire group in-market to support stores, hire, and ensure culture was substantial.

Freddy's Frozen Custard & Steakburgers

Individuals often underestimate how crucial team is to scaling. How have you approached building and scaling your team? This is something I'm truly pleased with. Our group took all the things we hated from past jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here. We emphasize development frame of mind and career pathing.

Otherwise, they get rose-colored glasses about success in the home market and presume it will equate quickly. You mentioned anticipating 5070% volumes. That's sobering. I've even seen cases where it's simply 2530% at launch. It highlights how important capital structure is. Yes. Most little growth principles like ours rely on equity, not debt.

Freddy's Frozen Custard & Steakburgers

Essential Tips for Expanding Restaurant Footprints

You need equity sponsors who think in the vision and the group. That's pricey, but it develops critical mass, constructs awareness, and validates above-store management.

And we were fortunate that Dallasour second marketwas also where our group lived. Having the whole group in-market to support shops, hire, and ensure culture was substantial.

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