Analyzing Franchise Models Against Market Data

Thank you. And we likewise have Clinton Anderson, the CEO of 4th, who will be moderating the conversation with Jason. So Jason, how about I let you give the audience some information about your background and you can also tell them a little bit about Chop Shop. And after that I'll let you take it from there, Clinton.

My name is Jason Morgan, CEO of Original Chop Store. We purchased the brand name in 2016three unitsand I have actually grown it to 26. After a short stint of trying to be an accounting professional for about a year and a half, I transitioned into casino property and worked in business finance.

I was the very first staff member there after private equity bought the company. Assisted grow that from 20 to 150 areas, took it public in 2014, and then left about a year and a half after going public to do this at Chop Shop. 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 mostly protein bowlsabout 40 percent of the mix. We also do salads, sandwiches. The key to the program is we have a beverage element also with fresh-squeezed juices and protein shakes. We do all stables, we do breakfast throughout the day.

Freddy's Frozen Custard & Steakburgers

A little more complex than a few of the walk-the-line ideas that are out there, however we believe we have actually got something quite special. We're going to add another store this year and a minimum of four shops next year. We will be 31 or so stores by the end of next year.

Key Tips for Expanding Restaurant Brands

Hey, everyone. It's fantastic to be with you once again. My name is Clinton Anderson. I'm the CEO here at Fourth. I have actually remained in this role for about 6 years. 4th, as a lot of you know, is a leading provider of software application solutions to the restaurant and hospitality industry. Our goal is to help our consumers be successful in driving profitability and being efficientmanaging labor, handling stock, and essentially supplying them with tools they require to deliver their vision.

It's unusual to have companies that are cherished and growing rapidly, that can repeat that success every year. Jason, one of the reasons I was so excited to have you join our session is the success at Zos was amazing. I have actually just met a handful of brands where there was such a strong consumer affinity for the brand.

And now you're doing the exact same thing at Chop Shop. When you talk with clients about Chop Shop, they love the place. They speak about its distinction. And to be able to take what is a relatively complex principle in regards to providing a fantastic experience for the customer, and be able to grow that from a few stores to now north of 30 stores next yearit's amazing.

We're going to talk about how to scale a dining establishment business. Every restaurateur I ever speak with has imagine taking one shop, 2 stores, five shops, and turning it into something much biggerexpanding across the city, across the state, into several states, and eventually national, even global reach. It's not simple, specifically in today's environment.

It's not a simple time to drive success and growth at the exact same time. How do you scale it and make it successful? Second, beyond technology, how do you scale excellent teams?

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

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 a company. To me, one of the crucial things, and I feel extremely fortunate, is that both brands I have actually been involved with are unique.

And there's absolutely nothing precisely like Chop Store in terms of what we're making with a large, diverse menu. Most brands today are really singularly focused in terms of what they're offering from a food. I seem like we started at an advantage with both brands by having something distinct that filled a niche no one else was doing.

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

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The 2nd thingI came from a finance background, so a lot of my learnings are more financing and data-driven versus a lot of early startup restaurateurs who are creative types. They love the food, they developed the menu, they constructed the brand name.

They do not understand their breakeven sales. They don't comprehend how margin improves as sales boost. They don't comprehend cash-on-cash returns. I have actually seen many companies where the numbers just don't work. And yet people say: let's open 10 more. And I'll say: why? It does not generate income. Stop. You require to discover an idea that is unique.

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If you don't have those two things, you should not be constructing shops. Yeah, possibly both, right? Due to the fact that as I hear your description, you have actually highlighted 3 things: execution, brand name distinction, and monetary practicality. You have actually got to start with execution. If you don't have an operating model that works, broadening it just multiplies problems.

Key Market Milestones Shaping 2026 Growth

Second, you require a compelling brand or unique idea that resonates with customers. And another key lesson is about going into brand-new markets.

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