Fast Casual Market Share Trends for 2026

We talked a little bit before we started about LinkedIn, and I've got a post teed approximately follow this next week about what the playbook is likepoint by pointfor growing a company. To me, one of the essential things, and I feel very fortunate, is that both brands I've been involved with are special.

And there's absolutely nothing exactly like Chop Shop in terms of what we're doing with a big, diverse menu. The majority of brand names today are really singularly focused in regards to 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 no one else was doing.

Because it's just more difficult to stand apart when there are 10, 20, 50 concepts within a 2- or three-mile radius trying to do the precise very same thing. So a great deal of it begins with the brand name. Does your brand name have something distinct that nobody else is doing? That's uncommon.

The second thingI originated from a finance 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 built the menu, they developed the brand name. I probably could not do that from scratch. But 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 don't know their breakeven sales. They don't comprehend how margin enhances as sales boost. I have actually seen so numerous companies where the numbers just don't work.

Analyzing Franchise Models Against Market Data

If you don't have those two things, you shouldn't be building stores. Since as I hear your description, you have actually highlighted three things: execution, brand name differentiation, and monetary practicality.

Second, you need an engaging brand name or unique principle that resonates with consumers. And 3rd, the math has to work. If you do not comprehend your unit economics, your fixed and variable expenses, you might be broadening blind and losing cash. Precisely. And another key lesson has to do with getting in new markets.

When we broadened to Dallas, I expected brand-new stores to do 5070% of Phoenix sales in the very first year. Too many operators assume brand-new markets will open at complete volume day one.

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

Freddy's Frozen Custard & Steakburgers

Significant Market Milestones for 2026 Expansion

You need equity sponsors who think in the vision and the team. That's pricey, but it creates crucial mass, builds awareness, and justifies above-store leadership.

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

Individuals typically undervalue how crucial team is to scaling. How have you approached building and scaling your group? This is something I'm truly happy with. Our team took all the things we disliked from past jobsfeeling underappreciated, underpaid, growth-stifledand developed the opposite culture here. We highlight growth frame of mind and career pathing.

Strategic Growth Milestones in 2026

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

You need equity sponsors who believe in the vision and the team. Another lesson: you need to open 4 to 6 shops in a new market within 2 to 3 years. That's costly, however it creates vital mass, constructs awareness, and validates above-store management. Without it, you remain slow and unprofitable.

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

Freddy's Frozen Custard & Steakburgers

People typically ignore how crucial team is to scaling. How have you approached structure and scaling your group? This is something I'm actually pleased with. Our group took all the things we disliked from past jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here. We highlight development state of mind and career pathing.

Otherwise, they get rose-colored glasses about success in the home market and assume it will translate quickly. You mentioned expecting 5070% volumes. That's sobering. I've even seen cases where it's just 2530% at launch. It underscores how vital capital structure is. Yes. Many little growth ideas like ours depend on equity, not debt.

Freddy's Frozen Custard & Steakburgers

Why Is Scaling the Best Investment?

You need equity sponsors who believe in the vision and the group. That's expensive, but it develops critical mass, develops awareness, and validates above-store leadership.

At Chop Shop, we deliberately built strong bases in Phoenix and Dallas initially. That gave us the success to stand up to slow starts in Houston and Atlanta. And we were fortunate that Dallasour 2nd marketwas also where our team lived. Having the entire group in-market to support shops, hire, and ensure culture was big.

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