Hospitality Industry Shifts Shaping 2026

We talked a little bit before we started about LinkedIn, and I have actually got a post teed as much as follow this next week about what the playbook is likepoint by pointfor growing a business. To me, among the essential things, and I feel really fortunate, is that both brands I have actually been included with are distinct.

And there's nothing precisely like Chop Store in terms of what we're finishing with a big, varied menu. A lot of brand names today are really singularly focused in terms of what they're using from a food. I feel like we started at an advantage with both brands by having something unique that filled a niche nobody else was doing.

A lot of it starts with the brand name. Does your brand have something unique that no one else is doing?

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

They do not understand their breakeven sales. They don't understand how margin improves as sales boost. I have actually seen so many companies where the numbers simply don't work.

Is Scaling a Best Move?

If you don't have those two things, you should not be developing shops. Due to the fact that as I hear your description, you've highlighted 3 things: execution, brand differentiation, and monetary viability.

Second, you require a compelling brand name or unique principle that resonates with clients. And third, the math needs to work. If you don't understand your unit economics, your fixed and variable costs, you might be broadening blind and losing cash. Precisely. And another essential lesson has to do with going into new markets.

When we expanded to Dallas, I expected 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 day one. That almost never ever takes place. And when the shops open slow, however you've signed leases and built a monetary model based upon higher volumes, you get overextended.

Otherwise, they get rose-colored glasses about success in the home market and presume it will equate quickly. You discussed expecting 5070% volumes. That's sobering. I've even seen cases where it's just 2530% at launch. It underscores how important capital structure is. Yes. Many small development concepts like ours rely on equity, not financial obligation.

Freddy's Frozen Custard & Steakburgers

Why Is Fast Casual a Best Investment?

You need equity sponsors who believe in the vision and the team. Another lesson: you require to open four to 6 shops in a new market within 2 to 3 years. That's expensive, but it develops emergency, builds awareness, and justifies above-store leadership. Without it, you remain sluggish and unprofitable.

At Chop Shop, we intentionally constructed strong bases in Phoenix and Dallas first. That gave us the success to stand up to sluggish starts in Houston and Atlanta. And we were fortunate that Dallasour 2nd marketwas also where our team lived. Having the entire team in-market to support stores, hire, and make sure culture was big.

People often underestimate how critical group is to scaling. Our group took all the things we hated from previous jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here.

National Milestones in Corporate Expansion

Otherwise, they get rose-colored glasses about success in the home market and assume it will equate quickly. 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 important capital structure is. Yes. A lot of small growth principles like ours count on equity, not financial obligation.

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

And we were fortunate that Dallasour 2nd marketwas also where our team lived. Having the entire group in-market to support stores, hire, and make sure culture was huge.

Freddy's Frozen Custard & Steakburgers

People typically underestimate how critical group is to scaling. Our team took all the things we disliked from previous jobsfeeling underappreciated, underpaid, growth-stifledand constructed the opposite culture here.

Otherwise, they get rose-colored glasses about success in the home market and assume it will equate quickly. You discussed expecting 5070% volumes. That's sobering. I have actually even seen cases where it's just 2530% at launch. It underscores how critical capital structure is. Yes. Most small development principles like ours count on equity, not financial obligation.

Freddy's Frozen Custard & Steakburgers

Significant Market Shifts for 2026 Expansion

So you need equity sponsors who believe in the vision and the group. Another lesson: you need to open 4 to 6 shops in a brand-new market within two to three years. That's expensive, however it creates emergency, builds awareness, and validates above-store leadership. Without it, you remain slow and unprofitable.

At Chop Store, we intentionally developed strong bases in Phoenix and Dallas. That offered us the profitability to hold up against 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 guarantee culture was substantial.

People typically underestimate how critical team is to scaling. Our group took all the things we disliked from past jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here.