Is Scaling the Best Investment?

And we also 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 likewise inform them a little bit about Chop Shop.

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

I was the first worker there after private equity purchased the organization. Helped grow that from 20 to 150 locations, 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 reproduce 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. It is primarily protein bowlsabout 40 percent of the mix. We likewise do salads, sandwiches. The secret to the program is we have a drink part too with fresh-squeezed juices and protein shakes. We do all stables, we do breakfast all day.

Freddy's Frozen Custard & Steakburgers

A little more complicated than some of the walk-the-line ideas that are out there, however we think we've got something quite special. We're going to add another shop this year and at least four stores next year. We will be 31 or so shops by the end of next year.

Strategic Growth Targets for 2026

I have actually been in this function for about six years. 4th, as numerous of you know, is a leading supplier of software application solutions to the dining establishment and hospitality market. Our objective is to assist our clients be effective in driving profitability and being efficientmanaging labor, managing stock, and basically supplying them with tools they need to deliver their vision.

It's rare to have companies that are cherished and growing quickly, that can repeat that success year after year. Jason, one of the factors I was so fired up to have you join our session is the success at Zos was incredible. I have actually just fulfilled a handful of brand names where there was such a strong client affinity for the brand.

And now you're doing the very same thing at Chop Store. When you speak with clients about Chop Shop, they like the location. They speak about its differentiation. And to be able to take what is a relatively complex idea in regards to delivering a great experience for the customer, and have the ability to grow that from a couple of stores to now north of 30 shops next yearit's incredible.

We're going to discuss how to scale a restaurant organization. Every restaurateur I ever speak with has dreams of taking one shop, two shops, 5 stores, and turning it into something much biggerexpanding throughout the city, across the state, into multiple states, and eventually national, even worldwide reach. It's not easy, specifically in today's environment.

Labor is difficult. Inventory costs stay high. It's not a simple time to drive profitability and development at the exact same time. However we're glad to have you here today, Jason, due to the fact that we're going to dig into that subject. The questions are going to be actually around: how do you grow a business? How do you scale it and make it effective? How do you replicate early success? And from there, after we talk about your experience and the lessons you've learned, we 'd love to then say: well, look, how could technology help? How can you use innovation as a multiplier to replicate early success to far-reaching success? Second, beyond innovation, how do you scale excellent teams? And last but not least, AI.

Top Franchise Opportunities in 2026

The very first concern I have for you, Jasonlook, you have actually done this twice now in the restaurant industry. What has your experience been in terms of what it takes to actually drive success in broadening restaurants?

We talked a little bit before we began 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 service. To me, one of the crucial things, and I feel really fortunate, is that both brands I've been involved with are special.

And there's absolutely nothing exactly like Chop Store in terms of what we're making with a large, varied menu. The majority of brands today are very singularly focused in regards to what they're using from a food product. I seem like we started at a benefit with both brands by having something unique that filled a niche nobody 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 specific very same thing. A lot of it starts with the brand name. Does your brand have something special that nobody else is doing? That's uncommon.

Corporate Expansion Milestones in 2026

The 2nd thingI originated from a finance background, so a lot of my knowings are more financing and data-driven versus a lot of early start-up restaurateurs who are imaginative types. They like the food, they developed the menu, they built the brand. I most likely could not do that from scratch. If you gave me something that has all those parts in place, I can take it from there and put the playbook in location.

They don't understand their breakeven sales. They do not understand how margin enhances as sales boost. They do not comprehend cash-on-cash returns. I've seen so numerous business where the numbers just do not work. And yet people state: let's open 10 more. And I'll state: why? It does not make money. Stop. You require to discover a principle that is special.

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If you do not have those 2 things, you should not be building stores. Yeah, possibly both? Because as I hear your description, you've highlighted 3 things: execution, brand differentiation, and financial practicality. You've got to begin with execution. If you don't have an operating model that works, expanding it just increases problems.

Top Franchise Prospects to Watch

Second, you require a compelling brand name or special idea that resonates with customers. And another essential lesson is about going into new markets.

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