Best Franchise Prospects in 2026

We talked a little bit before we started 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, among the key things, and I feel very fortunate, is that both brand names I have actually been involved with are special.

And there's nothing exactly like Chop Store in regards to what we're doing with a large, diverse menu. A lot of brands today are extremely singularly focused in terms of what they're using from a food product. I feel like we started at a benefit with both brands by having something unique that filled a niche nobody 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 2nd thingI came from a financing background, so a great deal of my knowings are more financing and data-driven versus a great deal of early start-up restaurateurs who are imaginative types. They like the food, they developed the menu, they built the brand name. I probably couldn't do that from scratch. If you provided me something that has all those elements in location, I can take it from there and put the playbook in place.

They do not know their breakeven sales. They do not understand how margin enhances as sales increase. They don't understand cash-on-cash returns. I've seen so numerous companies where the numbers just don't work. And yet people say: let's open 10 more. And I'll state: why? It doesn't earn money. Stop. You require to discover an idea that is special.

Significant Regional Shifts for 2026 Expansion

If you don't have those two things, you should not be building stores. Yeah, maybe both? Due to the fact that as I hear your description, you've highlighted 3 things: execution, brand distinction, and monetary viability. You have actually got to begin with execution. If you don't have an operating design that works, expanding it simply increases issues.

Second, you require a compelling brand or special concept that resonates with consumers. And third, the mathematics has to work. If you do not comprehend your system economics, your fixed and variable expenses, you might be expanding blind and losing cash. Exactly. And another crucial lesson has to do with entering new markets.

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

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

Freddy's Frozen Custard & Steakburgers

Steps to Expand a Dining Brand

So you need equity sponsors who think in the vision and the group. Another lesson: you require to open four to six stores in a new market within 2 to 3 years. That's pricey, but it develops emergency, develops awareness, and justifies above-store leadership. Without it, you stay slow and unprofitable.

And we were lucky that Dallasour second marketwas also where our team lived. Having the entire group in-market to support stores, hire, and make sure culture was substantial.

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

Hospitality Sector Shifts Shaping 2026

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

You require equity sponsors who think in the vision and the group. Another lesson: you need to open four to 6 stores in a new market within 2 to 3 years. That's expensive, but it develops emergency, builds awareness, and justifies above-store leadership. Without it, you remain sluggish and unprofitable.

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

Freddy's Frozen Custard & Steakburgers

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

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

Freddy's Frozen Custard & Steakburgers

Why Is Fast Casual a Wise Investment?

So you need equity sponsors who think in the vision and the team. Another lesson: you require to open four to six shops in a brand-new market within 2 to 3 years. That's costly, but it develops emergency, constructs awareness, and validates above-store management. Without it, you remain sluggish and unprofitable.

At Chop Shop, we deliberately developed strong bases in Phoenix and Dallas. That gave us the profitability to hold up against slow starts in Houston and Atlanta. And we were fortunate that Dallasour second marketwas likewise where our group lived. Having the entire team in-market to support shops, hire, and ensure culture was huge.

People typically ignore how vital group is to scaling. How have you approached building and scaling your team? This is something I'm truly happy of. Our group took all the things we hated from past jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here. We emphasize development frame of mind and career pathing.