Profitable Hospitality Investments Coming in 2026

We talked a little 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, one of the crucial things, and I feel extremely fortunate, is that both brands I've been involved with are distinct.

And there's absolutely nothing exactly like Chop Shop in terms of what we're finishing with a large, varied menu. A lot of brands today are really singularly focused in regards to what they're using from a food item. I seem like we started at an advantage with both brands by having something special that filled a specific niche no one else was doing.

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

The second thingI originated from a finance background, so a lot of my learnings are more finance and data-driven versus a great deal of early start-up restaurateurs who are innovative types. They love the food, they developed the menu, they constructed the brand. I most likely could not do that from scratch. However if you offered me something that has all those components in location, I can take it from there and put the playbook in location.

They do not understand their breakeven sales. They do not understand how margin improves as sales boost. They do not understand cash-on-cash returns. I've seen a lot of companies where the numbers simply don't work. And yet people say: let's open 10 more. And I'll say: why? It doesn't generate income. Stop. You need to find an idea that is unique.

Fast Casual Industry Trends for 2026

If you do not have those two things, you should not be building stores. Yeah, possibly both, right? Since as I hear your description, you've highlighted three things: execution, brand name distinction, and financial practicality. You have actually got to begin with execution. If you don't have an operating model that works, broadening it just multiplies issues.

Second, you need a compelling brand or unique idea that resonates with customers. And another essential lesson is about getting in new markets.

When we broadened to Dallas, I anticipated brand-new shops to do 5070% of Phoenix sales in the very first year. Too numerous operators presume 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 rapidly. You discussed anticipating 5070% volumes. That's sobering. I've even seen cases where it's simply 2530% at launch. It underscores how important capital structure is. Yes. A lot of little development ideas like ours depend on equity, not financial obligation.

Freddy's Frozen Custard & Steakburgers

Hospitality Industry Trends Shaping 2026

You need equity sponsors who believe in the vision and the group. That's pricey, however it produces important mass, constructs awareness, and justifies above-store management.

At Chop Store, we deliberately developed strong bases in Phoenix and Dallas initially. That provided us the profitability to hold up against slow starts in Houston and Atlanta. And we were fortunate that Dallasour 2nd marketwas likewise where our team lived. Having the entire group in-market to support stores, hire, and ensure culture was big.

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

Comparing Franchise Models Against Growth Data

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

You require equity sponsors who think in the vision and the team. That's expensive, but it develops vital mass, builds awareness, and validates above-store leadership.

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

Freddy's Frozen Custard & Steakburgers

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

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

Freddy's Frozen Custard & Steakburgers

Key Market Milestones for 2026 Growth

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

At Chop Shop, we deliberately constructed strong bases in Phoenix and Dallas. That offered us the success to endure sluggish starts in Houston and Atlanta. And we were lucky that Dallasour 2nd marketwas also where our team lived. Having the entire team in-market to support stores, hire, and ensure culture was big.

People typically underestimate how crucial team is to scaling. How have you approached building and scaling your team? This is something I'm really proud of. Our team took all the important things we hated from past jobsfeeling underappreciated, underpaid, growth-stifledand developed the opposite culture here. We emphasize growth mindset and profession pathing.