Expansion Updates: Regional Developments for 2026

Growing a dining establishment from one or 2 locations into a multi-unit chain is the imagine numerous operators. But scaling without slipping into losses or losing culture is unusual. In a webinar, Fourth's CEO, Clinton Anderson sat down with Jason Morgan, CEO of ChopShop, to unpack the lessons learned from scaling two successful dining establishment brand names.

Many brands go after expansion before the basic engine is strong. As Jason kept in mind, "expansion of an inadequate operating model is a disaster." Unless you currently have: A differentiated brand name that resonates A proven system economics model And operational rigor you risk diluting quality, overspending, and hitting underperformance faster than you anticipate.

Freddy's Frozen Custard & Steakburgers

Jason shared that numerous operators don't understand their break-even sales or minimal margin gain as volume boosts, and yet they green light brand-new units. This isn't just theory.

Profitable Hospitality Investments Arising in 2026

Brands with clear cost exposure and disciplined growth are weathering inflation far much better than those going after volume for its own sake. Many brand names can talk differentiation, however couple of carry out regularly throughout markets.

Ensuring your operating design really works before expansion is the distinction in between scaling success and increasing inefficiency. Jason highlighted that both ChopShop and his previous brand, Zos Kitchen area, prospered since they used something couple of others were doing. When your idea is too generic (burgers, pizza, tacos), you complete on margin alone.

Jason talked about cash-on-cash returns, breakeven volumes, and margin enhancement curves. In the webinar, Jason shared that in Dallas, ChopShop anticipated brand-new units to hit 50-70% of Phoenix volumes.

Freddy's Frozen Custard & Steakburgers

Best Investment Prospects to Watch

Some lessons from Jason's experience: Accept that new stores will open gradually. Be capitalized with a buffer to take in early losses. In a new market, aim to open 4-6 shops within a 2-3 year duration to build awareness and justify above-store support. Seed market management and move proven operators into brand-new markets to "live it daily." These strategies help avoid overextending early and allow local brand momentum to construct organically.

Jason explained how ChopShop built profession paths from per hour roles all the way to local management. A few of their essential individuals metrics: Per hour turnover around 97% (around half what market norms typically report) GM period exceeding 4.5 years Over 80% of GMs promoted internally They also developed "AGM-in-training" roles to prepare brand-new supervisors before a shop opens, a smarter, proactive method to grow bench strength.

It's unusual (and slightly adventurous) to make an IT lead your fourth hire, however that's specifically what Jason did at ChopShop. Their tech stack allowed business to feel like a 150-unit brand even when they had just 18 places, a durability benefit when COVID struck. Secret tech investments consisted of: A modern-day POS (instead of tradition systems) Back-office systems and inventory tools An information warehouse (Mirus) to generate real reporting Digital buying and commitment combinations (today 74% of sales are digital, and 40% bring loyalty IDs) As highlights, innovation is no longer optional, it's how operators scale naturally, handle costs, and alleviate threat.

Without a complete view of expense structure, AUV can be misleading. If you do not money early ramp losses, you may be required to pull away. If expansion outpaces your bench, quality deteriorates. Waiting to "grow" before building systems is a regular mistake. Scaling isn't practically store count, it's about growing a company that keeps brand name identity, quality, and function.

National Success in Brand Scaling

It's a lot easier to broaden when growth is grounded in clarity, rigor, and a people-first principles. Wish to hear this all directly from Jason? View the complete webinar on-demand to find out how ChopShop is scaling successfully. If you 'd like a turnkey development evaluation, financial model review, or to explore how linked operations software application can support your scaling journey, connect to Fourth.

Everybody, welcome to our webinar today. Our session is all about the development playbook for restaurant CEOs with an amazing guest speaker I will introduce briefly. So we'll proceed and get things started. I'm Christina from the Fourth group here as your host. And just as people are joining and signing on, I'll use this time to cover a fast couple of housekeeping notes.