Regional Milestones in Corporate Scaling

Thank you. And we likewise have Clinton Anderson, the CEO of Fourth, who will be moderating the discussion with Jason. Jason, how about I let you offer the audience some info about your background and you can also inform them a little bit about Chop Store. And then I'll let you take it from there, Clinton.

Thanks Christina. My name is Jason Morgan, CEO of Original Chop Store. I have actually 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 have actually invested many of my profession in hospitality in some shape or type. After a short stint of attempting to be an accounting professional for about a year and a half, I transitioned into gambling establishment property and worked in corporate finance.

I was the very first worker there after personal equity purchased the company. Assisted grow that from 20 to 150 places, 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 duplicate the success we had at Zos, and we're off to a truly good start.

We're at the counter, we bring the food to the table. The key to the program is we have a drink component as well with fresh-squeezed juices and protein shakes.

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 have actually got something quite unique. We're going to add another store this year and at least 4 shops next year. So we will be 31 or two shops by the end of next year.

Quick Service Industry Trends

I have actually been in this function for about 6 years. 4th, as numerous of you know, is a leading provider of software options to the restaurant and hospitality market. Our goal is to assist our clients be effective in driving profitability and being efficientmanaging labor, managing stock, and essentially providing them with tools they require to deliver their vision.

It's uncommon to have companies that are precious and growing quickly, that can repeat that success every year. Jason, among the reasons I was so ecstatic to have you join our session is the success at Zos was fantastic. I've only fulfilled a handful of brand names where there was such a strong client affinity for the brand.

And now you're doing the same thing at Chop Shop. When you speak with customers about Chop Shop, they love the place. They discuss its distinction. And to be able to take what is a reasonably complicated concept in regards to providing a terrific experience for the customer, and have the ability to grow that from a couple of shops to now north of 30 shops next yearit's amazing.

We're going to speak about how to scale a dining establishment service. Every restaurateur I ever speak to has imagine taking one shop, two shops, 5 shops, and turning it into something much biggerexpanding throughout the city, across the state, into several states, and ultimately national, even global reach. But it's hard, particularly in today's environment.

Labor is hard. Stock costs remain high. It's not an easy time to drive success and development at the same time. However we're pleased to have you here today, Jason, since we're going to go into that subject. The questions are going to be really around: how do you grow an organization? How do you scale it and make it effective? How do you reproduce early success? And from there, after we speak about your experience and the lessons you've found out, we 'd love to then say: well, appearance, how could technology assist? How can you use technology as a multiplier to replicate early success to significant success? Second, beyond technology, how do you scale excellent groups? And last but not least, AI.

Is Fast Casual a Best Investment?

The very first concern I have for you, Jasonlook, you've done this twice now in the restaurant industry. What has your experience been in terms of what it takes to truly drive success in expanding dining establishments?

We talked a bit before we began 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 service. To me, one of the crucial things, and I feel extremely fortunate, is that both brand names I have actually been involved with are unique.

And there's absolutely nothing precisely like Chop Shop in regards to what we're finishing with a big, diverse menu. The majority of brands today are really singularly focused in terms of what they're offering from a foodstuff. I feel like we began at an advantage with both brand names by having something distinct 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?

How to Expand Your Dining Brand

The second thingI came 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 imaginative types. They love the food, they built the menu, they constructed the brand.

They don't know their breakeven sales. They don't comprehend how margin improves as sales increase. They don't understand cash-on-cash returns. I've seen a lot of business where the numbers simply do not work. And yet individuals say: let's open 10 more. And I'll state: why? It does not generate income. Stop. You need to discover a concept that is unique.

Freddy's Frozen Custard & Steakburgers

If you do not have those 2 things, you shouldn't be developing shops. Yeah, possibly both? Since as I hear your description, you have actually highlighted three things: execution, brand name differentiation, and financial viability. You've got to begin with execution. If you don't have an operating model that works, expanding it just increases problems.

Strategic Growth Milestones for 2026

Second, you require an engaging brand or special concept that resonates with clients. And 3rd, the mathematics has to work. If you don't comprehend your system economics, your fixed and variable costs, you may be expanding blind and losing money. Precisely. And another crucial lesson has to do with getting in new markets.

But when we expanded to Dallas, I anticipated new shops to do 5070% of Phoenix sales in the very first year. A lot of operators assume new markets will open at complete volume day one. That nearly never occurs. And when the stores open slow, but you've signed leases and developed a monetary design based on higher volumes, you get overextended.