Comparing Investment Models Against Market Trends

Thank you. And we also have Clinton Anderson, the CEO of Fourth, who will be moderating the discussion with Jason. Jason, how about I let you provide the audience some info 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.

Thanks Christina. My name is Jason Morgan, CEO of Original Chop Shop. I have actually been doing this for about 9 years now. We bought the brand in 2016three unitsand I've grown it to 26. Prior to this, I've invested the majority of my career in hospitality in some shape or type. After a short stint of trying to be an accountant for about a year and a half, I transitioned into casino property and operated in business financing.

I was the very first staff member there after private equity purchased the company. Helped 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 reproduce the success we had at Zos, and we're off to a really good start.

We're at the counter, we bring the food to the table. The secret to the program is we have a drink part 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 ideas that are out there, however we think we've got something pretty 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.

Fast Casual Market Share Growth for 2026

I have actually been in this function for about six years. 4th, as numerous of you know, is a leading service provider of software application options to the restaurant and hospitality industry. Our objective is to assist our clients be effective in driving success and being efficientmanaging labor, managing inventory, and generally providing them with tools they require to provide their vision.

It's rare to have companies that are beloved and growing quickly, that can repeat that success every year. Jason, one of the reasons I was so thrilled to have you join our session is the success at Zos was incredible. I've only met a handful of brands where there was such a strong client affinity for the brand name.

When you talk to consumers about Chop Shop, they like the place. And to be able to take what is a reasonably complicated idea in terms of delivering a terrific experience for the client, and be able to grow that from a few shops to now north of 30 stores next yearit's fantastic.

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

Labor is difficult. Inventory expenses remain high. It's not a simple time to drive profitability and development at the very same time. We're happy to have you here today, Jason, due to the fact that we're going to dig 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 duplicate early success? And from there, after we discuss your experience and the lessons you've learned, we 'd enjoy to then say: well, look, how could innovation help? How can you use technology as a multiplier to reproduce early success to far-reaching success? Second, beyond innovation, how do you scale terrific teams? And finally, AI.

Analyzing Franchise Models Against Market Data

The very first question 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 truly drive success in expanding dining establishments?

We talked a bit before we started about LinkedIn, and I've got a post teed approximately follow this next week about what the playbook is likepoint by pointfor growing a service. To me, one of the essential things, and I feel very fortunate, is that both brands I have actually been included with are special.

And there's nothing exactly like Chop Store in regards to what we're finishing with a big, varied menu. Most brand names today are extremely singularly focused in terms of what they're using from a food. I feel like we started at an advantage with both brand names by having something distinct that filled a niche nobody else was doing.

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

Essential Strategies to Growing Hospitality Brands

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

They don't know their breakeven sales. They do not understand how margin improves as sales increase. I have actually seen so many business where the numbers just do not work.

Freddy's Frozen Custard & Steakburgers

If you don't have those 2 things, you shouldn't be building shops. Since as I hear your description, you've highlighted three things: execution, brand name differentiation, and financial viability.

The Benefits of Restaurant Franchising in 2026

Second, you require a compelling brand or special concept that resonates with customers. And 3rd, the mathematics needs to work. If you don't comprehend your system economics, your repaired and variable costs, you might be broadening blind and losing money. Exactly. And another essential lesson is about getting in brand-new markets.

But when we broadened to Dallas, I expected brand-new shops to do 5070% of Phoenix sales in the very first year. A lot of operators assume brand-new markets will open at full volume day one. That almost never ever takes place. And when the shops open slow, but you have actually signed leases and built a financial model based on greater volumes, you get overextended.