Major Growth Targets in 2026

Growing a dining establishment from one or 2 places into a multi-unit chain is the dream of many operators. But scaling without slipping into losses or losing culture is uncommon. In a webinar, 4th's CEO, Clinton Anderson sat down with Jason Morgan, CEO of ChopShop, to unload the lessons gained from scaling two successful dining establishment brand names.

Many brands go after expansion before the fundamental engine is strong. As Jason noted, "expansion of an inefficient operating model is a catastrophe." Unless you currently have actually: A differentiated brand that resonates A tested unit economics model And functional rigor you risk diluting quality, overspending, and striking underperformance earlier than you anticipate.

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variable cost structure, and margin curves as sales scale. Jason shared that many operators do not understand their break-even sales or marginal margin gain as volume increases, and yet they green light brand-new units. This isn't simply theory. As Dining establishment Company notes, operators that compromise on system economics "often stop growing sustainably" as inflation, labor pressure, and rent continue to increase.

Hospitality Sector Trends Redefining 2026

Brands with clear cost exposure and disciplined growth are weathering inflation far much better than those chasing volume for its own sake. Numerous brands can talk differentiation, but few execute consistently across markets.

Ensuring your operating model really works before growth is the distinction between scaling success and increasing ineffectiveness. Jason emphasized that both ChopShop and his previous brand name, Zos Kitchen area, prospered because they offered something few others were doing. When your principle is too generic (hamburgers, pizza, tacos), you complete on margin alone.

Jason talked about cash-on-cash returns, breakeven volumes, and margin improvement curves. In the webinar, Jason shared that in Dallas, ChopShop anticipated new units to hit 50-70% of Phoenix volumes.

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Significant Market Milestones for 2026 Expansion

Some lessons from Jason's experience: Accept that new stores will open slowly. These techniques assist prevent overextending early and allow regional brand momentum to develop organically.

Jason described how ChopShop developed career paths from hourly functions all the way to regional management. A few of their essential people metrics: Per hour turnover around 97% (approximately half what market standards typically report) GM tenure exceeding 4.5 years Over 80% of GMs promoted internally They likewise created "AGM-in-training" roles to prepare new managers before a shop opens, a smarter, proactive way to grow bench strength.

It's rare (and slightly audacious) to make an IT lead your 4th hire, but that's precisely what Jason did at ChopShop. Their tech stack allowed the company to feel like a 150-unit brand even when they had just 18 places, a durability benefit when COVID struck. Key tech investments consisted of: A modern POS (rather than tradition systems) Back-office systems and stock tools An information storage facility (Mirus) to create genuine reporting Digital purchasing and commitment integrations (today 74% of sales are digital, and 40% bring commitment IDs) As highlights, innovation is no longer optional, it's how operators scale naturally, handle expenses, and mitigate risk.

If expansion outpaces your bench, quality deteriorates. Scaling isn't just about store count, it's about growing a service that retains brand identity, quality, and function.

Significant Regional Shifts for 2026 Growth

It's much easier to broaden when growth is grounded in clarity, rigor, and a people-first ethos. Wish to hear this all straight from Jason? Enjoy the full webinar on-demand to find out how ChopShop is scaling beneficially. If you 'd like a turnkey growth assessment, monetary model review, or to explore how linked operations software application can support your scaling journey, reach out to 4th.

Everyone, welcome to our webinar today. Our session is all about the growth playbook for restaurant CEOs with an interesting visitor speaker I will introduce temporarily. We'll go ahead and get things started. I'm Christina from the Fourth team here as your host. And simply as individuals are signing up with and signing on, I'll use this time to cover a quick couple of housekeeping notes.