Best Franchise Opportunities in 2026

We talked a 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, one of the key things, and I feel very lucky, is that both brand names I have actually been included with are distinct.

And there's absolutely nothing exactly like Chop Shop in terms of what we're making with a big, varied menu. The majority of brand names today are very singularly focused in regards to what they're offering from a foodstuff. I seem like we began at an advantage with both brand names by having something special that filled a niche nobody else was doing.

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

The 2nd thingI came from a financing background, so a great deal of my learnings are more finance and data-driven versus a great deal of early start-up restaurateurs who are imaginative types. They enjoy the food, they developed the menu, they developed the brand. I probably couldn't do that from scratch. But if you offered me something that has all those parts in location, I can take it from there and put the playbook in location.

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

Why Is Fast Casual the Best Move?

If you do not have those two things, you should not be constructing stores. Yeah, possibly both? Since as I hear your description, you've highlighted 3 things: execution, brand differentiation, and monetary viability. You've got to start with execution. If you do not have an operating model that works, broadening it just multiplies issues.

Second, you need an engaging brand or special principle that resonates with customers. And another key lesson is about getting in new markets.

When we broadened to Dallas, I expected new shops to do 5070% of Phoenix sales in the very first year. Too numerous operators assume 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 equate rapidly. You discussed anticipating 5070% volumes. I have actually even seen cases where it's just 2530% at launch.

Freddy's Frozen Custard & Steakburgers

Corporate Expansion Milestones for 2026

You need equity sponsors who believe in the vision and the team. That's pricey, but it produces vital mass, develops awareness, and justifies above-store leadership.

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

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

Hospitality Sector Shifts Shaping 2026

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

So you need equity sponsors who believe in the vision and the team. Another lesson: you need to open four to six stores in a brand-new market within 2 to 3 years. That's pricey, however it produces crucial mass, builds awareness, and justifies above-store management. Without it, you stay slow and unprofitable.

At Chop Shop, we intentionally built strong bases in Phoenix and Dallas first. That provided us the profitability to endure sluggish starts in Houston and Atlanta. And we were lucky that Dallasour 2nd marketwas likewise where our group lived. Having the entire group in-market to support shops, hire, and ensure culture was big.

Freddy's Frozen Custard & Steakburgers

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

Otherwise, they get rose-colored glasses about success in the home market and assume it will translate rapidly. You mentioned expecting 5070% volumes. That's sobering. I have actually even seen cases where it's simply 2530% at launch. It underscores how crucial capital structure is. Yes. The majority of little growth principles like ours count on equity, not financial obligation.

Freddy's Frozen Custard & Steakburgers

Is Scaling a Best Investment?

You need equity sponsors who believe in the vision and the team. That's costly, however it creates crucial mass, develops awareness, and justifies above-store leadership.

And we were lucky that Dallasour 2nd marketwas likewise where our group lived. Having the entire team in-market to support shops, hire, and make sure culture was substantial.

Individuals frequently underestimate how vital team is to scaling. How have you approached structure and scaling your team? This is something I'm actually pleased with. Our team took all the things we hated from previous jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here. We highlight development state of mind and profession pathing.