Quick Service Industry Growth

And we also have Clinton Anderson, the CEO of 4th, who will be moderating the discussion with Jason. Jason, how about I let you provide the audience some info about your background and you can also inform them a little bit about Chop Shop.

Thanks Christina. My name is Jason Morgan, CEO of Original Chop Shop. I've been doing this for about 9 years now. We bought the brand in 2016three unitsand I have actually grown it to 26. Prior to this, I've spent the majority of my profession in hospitality in some shape or form. After a short stint of trying to be an accountant for about a year and a half, I transitioned into casino home and worked in corporate financing.

I was the very first worker there after personal equity bought the service. Helped grow that from 20 to 150 areas, took it public in 2014, and after that left about a year and a half after going public to do this at Chop Store. My hope is that we can reproduce the success we had at Zos, and we're off to a truly excellent start.

We're at the counter, we bring the food to the table. It is primarily protein bowlsabout 40 percent of the mix. We likewise do salads, sandwiches. The key to the program is we have a beverage component as well with fresh-squeezed juices and protein shakes. We do all stables, we do breakfast all day.

Freddy's Frozen Custard & Steakburgers

A little more complex than a few of the walk-the-line principles that are out there, however we believe we've got something pretty unique. We're going to add another store this year and a minimum of 4 shops next year. So we will be 31 approximately shops by the end of next year.

Comparing Franchise Models Against Market Trends

Hey, everybody. It's terrific to be with you again. My name is Clinton Anderson. I'm the CEO here at Fourth. I have actually remained in this function for about 6 years. 4th, as numerous of you know, is a leading service provider of software solutions to the restaurant and hospitality market. Our goal is to assist our customers be successful in driving profitability and being efficientmanaging labor, handling stock, and basically providing them with tools they require to provide their vision.

It's unusual to have companies that are cherished and growing quickly, that can repeat that success every year. Jason, among the reasons I was so excited to have you join our session is the success at Zos was remarkable. I've just satisfied a handful of brand names where there was such a strong customer affinity for the brand name.

And now you're doing the same thing at Chop Shop. When you talk to clients about Chop Store, they enjoy the place. They speak about its distinction. And to be able to take what is a fairly complex idea in regards to providing a great experience for the client, and be able to grow that from a couple of shops to now north of 30 shops next yearit's fantastic.

We're going to discuss how to scale a dining establishment organization. Every restaurateur I ever talk to has dreams of taking one store, 2 stores, 5 stores, and turning it into something much biggerexpanding throughout the city, across the state, into numerous states, and ultimately national, even international reach. It's not easy, specifically in today's environment.

Labor is difficult. Inventory costs remain high. It's not a simple time to drive success and development at the very same time. We're grateful to have you here today, Jason, due to the fact that we're going to dig into that subject. The concerns are going to be truly around: how do you grow a company? How do you scale it and make it effective? How do you duplicate early success? And from there, after we talk about your experience and the lessons you've learned, we 'd like to then say: well, appearance, how could technology assist? How can you utilize technology as a multiplier to reproduce early success to far-reaching success? Second, beyond technology, how do you scale great teams? And finally, AI.

Key Regional Shifts for 2026 Expansion

The very first question I have for you, Jasonlook, you have actually done this twice now in the dining establishment industry. What has your experience been in terms of what it takes to truly drive success in broadening restaurants?

We talked a bit before we started about LinkedIn, and I've got a post teed up to follow this next week about what the playbook is likepoint by pointfor growing an organization. To me, among the crucial things, and I feel really fortunate, is that both brand names I have actually been included with are distinct.

And there's absolutely nothing exactly like Chop Shop in regards to what we're making with a large, diverse menu. A lot of brands today are extremely singularly focused in terms of what they're offering from a food. I feel like we began at an advantage with both brands by having something distinct that filled a specific niche no one else was doing.

Since it's just more difficult to stick out when there are 10, 20, 50 ideas within a two- or three-mile radius trying to do the precise same thing. A lot of it begins with the brand name. Does your brand name have something distinct that nobody else is doing? That's unusual.

Profitable Business Investments Coming in 2026

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

They do not know their breakeven sales. They don't understand how margin improves as sales boost. They don't comprehend cash-on-cash returns. I have actually seen so lots of companies where the numbers just do not work. And yet individuals state: let's open 10 more. And I'll state: why? It doesn't earn money. Stop. You need to find a concept that is special.

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If you don't have those two things, you shouldn't be constructing stores. Due to the fact that as I hear your description, you've highlighted three things: execution, brand name differentiation, and financial practicality.

National Milestones in Brand Expansion

Second, you need an engaging brand or unique concept that resonates with consumers. And another crucial lesson is about entering brand-new markets.

However when we expanded to Dallas, I expected brand-new shops to do 5070% of Phoenix sales in the very first year. Too numerous operators assume new markets will open at full volume day one. That almost never ever occurs. And when the shops open slow, but you've signed leases and developed a monetary design based upon greater volumes, you get overextended.