Fast Casual Industry Trends for 2026

We talked a bit before we began about LinkedIn, and I've got a post teed up to follow this next week about what the playbook is likepoint by pointfor growing a business. To me, one of the key things, and I feel really lucky, is that both brands I've been involved with are special.

And there's nothing exactly like Chop Shop in terms of what we're doing with a big, diverse menu. Many brands today are really singularly focused in regards to what they're using from a foodstuff. I seem like we started at a benefit with both brands by having something special that filled a niche nobody else was doing.

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

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

They don't understand their breakeven sales. They don't comprehend how margin enhances as sales boost. I have actually seen so many companies where the numbers just do not work.

Essential Tips for Growing Restaurant Footprints

If you don't have those 2 things, you should not be constructing shops. Yeah, possibly both, right? Since as I hear your description, you have actually highlighted three things: execution, brand name distinction, and monetary viability. You've got to start with execution. If you do not have an operating model that works, broadening it just multiplies issues.

Second, you require an engaging brand or distinct principle that resonates with customers. And another key lesson is about going into brand-new markets.

However when we expanded to Dallas, I expected new stores to do 5070% of Phoenix sales in the first year. Too numerous operators presume new markets will open at complete volume the first day. That almost never happens. And when the shops open sluggish, but you've signed leases and constructed a financial model based on greater volumes, you get overextended.

Otherwise, they get rose-colored glasses about success in the home market and assume it will translate quickly. You discussed expecting 5070% volumes. That's sobering. I've even seen cases where it's simply 2530% at launch. It highlights how critical capital structure is. Yes. Many small growth principles like ours depend on equity, not financial obligation.

Freddy's Frozen Custard & Steakburgers

Comparing Franchise ROI Against Growth Data

You need equity sponsors who believe in the vision and the group. That's pricey, but it creates crucial mass, develops awareness, and validates above-store leadership.

At Chop Store, we deliberately developed strong bases in Phoenix and Dallas. That offered us the success to stand up to sluggish starts in Houston and Atlanta. And we were lucky that Dallasour second marketwas likewise where our group lived. Having the entire group in-market to support stores, hire, and make sure culture was big.

People frequently undervalue how important team is to scaling. How have you approached building and scaling your team? This is something I'm actually happy with. Our team took all the things we hated from previous jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here. We stress growth frame of mind and career pathing.

The Benefits of Restaurant Franchising in 2026

Otherwise, they get rose-colored glasses about success in the home market and assume it will translate quickly. You discussed expecting 5070% volumes. That's sobering. I've even seen cases where it's simply 2530% at launch. It highlights how important capital structure is. Yes. The majority of small development ideas like ours depend on equity, not financial obligation.

So you need equity sponsors who think in the vision and the group. Another lesson: you need to open 4 to six stores in a brand-new market within two to three years. That's pricey, however it produces emergency, develops awareness, and justifies above-store leadership. Without it, you remain sluggish and unprofitable.

And we were fortunate that Dallasour second marketwas likewise where our group lived. Having the whole group in-market to support shops, hire, and ensure culture was big.

Freddy's Frozen Custard & Steakburgers

People typically underestimate 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.

Otherwise, they get rose-colored glasses about success in the home market and presume it will translate rapidly. You discussed expecting 5070% volumes. That's sobering. I have actually even seen cases where it's just 2530% at launch. It highlights how critical capital structure is. Yes. The majority of small development principles like ours rely on equity, not financial obligation.

Freddy's Frozen Custard & Steakburgers

Key Market Milestones for 2026 Growth

You need equity sponsors who believe in the vision and the group. That's expensive, but it produces vital mass, constructs awareness, and justifies above-store leadership.

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

People typically underestimate how important team is to scaling. Our group took all the things we disliked from previous jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here.