Key Strategies for Growing Hospitality Footprints

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 provide the audience some details about your background and you can likewise inform them a bit about Chop Shop. And after that 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 nine years now. We bought the brand name in 2016three unitsand I've grown it to 26. Prior to this, I have actually spent the majority of my career in hospitality in some shape or kind. After a brief stint of attempting to be an accounting professional for about a year and a half, I transitioned into casino property and operated in corporate financing.

I was the very first staff member there after personal equity purchased business. 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 Store. My hope is that we can reproduce the success we had at Zos, and we're off to an actually 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 beverage element too 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 complicated than a few of the walk-the-line concepts that are out there, but we believe we have actually got something pretty special. We're going to add another store this year and at least four stores next year. So we will be 31 or two stores by the end of next year.

National Milestones in Brand Scaling

I've been in this role for about six years. 4th, as numerous of you know, is a leading company of software application services to the restaurant and hospitality market. Our objective is to help our customers be effective in driving success and being efficientmanaging labor, handling inventory, and generally offering them with tools they require to deliver their vision.

It's unusual to have business that are precious 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 remarkable. I've just fulfilled a handful of brands where there was such a strong client affinity for the brand name.

When you talk to consumers about Chop Store, they enjoy the place. And to be able to take what is a reasonably complicated principle in terms of delivering an excellent experience for the consumer, and be able to grow that from a few stores to now north of 30 stores next yearit's remarkable.

We're going to speak about how to scale a dining establishment company. Every restaurateur I ever talk with has imagine taking one store, 2 stores, 5 stores, and turning it into something much biggerexpanding across the city, throughout the state, into numerous states, and eventually nationwide, even global reach. It's not easy, particularly in today's environment.

Labor is difficult. Inventory costs remain high. It's not a simple time to drive profitability and growth at the very same time. However we're happy to have you here today, Jason, due to the fact that we're going to go into that topic. The concerns are going to be really around: how do you grow a company? How do you scale it and make it effective? How do you replicate 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 help? How can you utilize innovation as a multiplier to replicate early success to significant success? Second, beyond innovation, how do you scale great groups? And lastly, AI.

Key Regional Shifts Shaping 2026 Growth

The very first concern I have for you, Jasonlook, you have actually done this two times now in the restaurant industry. What are some of the lessons you've found out? What has your experience been in regards to what it requires to actually drive success in broadening dining establishments? Inform me a little about your path, what you experienced along the method, and perhaps some of the more difficult lessons you found out.

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, among the essential things, and I feel really lucky, is that both brands I have actually been involved with are special.

And there's absolutely nothing precisely like Chop Store in terms of what we're making with a big, diverse menu. A lot of brands today are really singularly focused in terms of what they're offering from a food item. I feel like we began at a benefit with both brands by having something unique that filled a niche no one else was doing.

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

Major Growth Targets for 2026

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

They do not understand their breakeven sales. They don't comprehend how margin improves as sales increase. They do not comprehend cash-on-cash returns. I have actually seen a lot of companies where the numbers just do not work. And yet individuals state: let's open 10 more. And I'll say: why? It does not generate income. Stop. You need to find a principle that is special.

Freddy's Frozen Custard & Steakburgers

If you do not have those 2 things, you shouldn't be building shops. Yeah, possibly both, right? Due to the fact that as I hear your description, you've highlighted three things: execution, brand differentiation, and financial viability. You've got to start with execution. If you don't have an operating design that works, expanding it just increases issues.

Significant Regional Milestones for 2026 Expansion

Second, you need an engaging brand name or unique principle that resonates with clients. And 3rd, the mathematics needs to work. If you don't understand your unit economics, your repaired and variable expenses, you may be expanding blind and losing money. Exactly. And another key lesson has to do with getting in new markets.

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