Strategic Expansion Milestones for 2026

Thank you. And we likewise have Clinton Anderson, the CEO of 4th, who will be moderating the discussion with Jason. So Jason, how about I let you offer the audience some info 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 Shop. I have actually been doing this for about 9 years now. We purchased the brand in 2016three unitsand I've grown it to 26. Prior to this, I've invested the majority of my profession in hospitality in some shape or form. After a short stint of trying to be an accounting professional for about a year and a half, I transitioned into gambling establishment property and worked in business finance.

I was the very first employee there after personal equity bought business. Helped grow that from 20 to 150 areas, 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 replicate the success we had at Zos, and we're off to a truly excellent start.

We're at the counter, we bring the food to the table. The key to the program is we have a beverage part as well with fresh-squeezed juices and protein shakes.

Freddy's Frozen Custard & Steakburgers

A little more complicated than a few of the walk-the-line concepts that are out there, but we think we've got something quite special. We're going to add another shop this year and a minimum of 4 shops next year. We will be 31 or so shops by the end of next year.

Strategic Growth Milestones in 2026

I have actually been in this function for about 6 years. Fourth, as many of you understand, is a leading company of software options to the restaurant and hospitality industry. Our goal is to help our clients be effective in driving profitability and being efficientmanaging labor, handling stock, and essentially offering them with tools they require to provide their vision.

It's uncommon to have business that are beloved and growing quickly, that can duplicate that success every year. Jason, among the reasons I was so ecstatic to have you join our session is the success at Zos was incredible. I've only satisfied a handful of brands where there was such a strong consumer affinity for the brand name.

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

We're going to speak about how to scale a restaurant company. Every restaurateur I ever talk with has dreams of taking one store, 2 stores, 5 shops, and turning it into something much biggerexpanding across the city, across the state, into numerous states, and ultimately national, even global reach. But it's challenging, specifically in today's environment.

Labor is difficult. Inventory expenses stay high. It's not an easy time to drive success 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 dig into that subject. The concerns are going to be actually around: how do you grow a company? How do you scale it and make it successful? How do you replicate early success? And from there, after we talk about your experience and the lessons you've found out, we 'd love to then say: well, appearance, how could technology assist? How can you use technology as a multiplier to replicate early success to far-reaching success? Second, beyond technology, how do you scale terrific teams? And lastly, AI.

How to Expand Your Restaurant Brand

The first question I have for you, Jasonlook, you have actually done this two times now in the dining establishment industry. What has your experience been in terms of what it takes to really drive success in expanding dining establishments?

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, one of the crucial things, and I feel extremely lucky, is that both brands I've been included with are unique.

And there's absolutely nothing precisely like Chop Store in terms of what we're making with a large, varied menu. A lot of brands today are very singularly focused in regards to what they're using from a foodstuff. I feel like we started at a benefit with both brand names by having something unique that filled a specific niche nobody else was doing.

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

Key Regional Milestones for 2026 Expansion

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 startup restaurateurs who are imaginative types. They like the food, they built the menu, they constructed the brand.

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

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If you don't have those 2 things, you should not be constructing stores. Since as I hear your description, you have actually highlighted 3 things: execution, brand name differentiation, and financial practicality.

Quick Service Industry Growth

Second, you need an engaging brand or unique idea that resonates with customers. And 3rd, the mathematics has to work. If you do not comprehend your unit economics, your fixed and variable costs, you may be expanding blind and losing money. Exactly. And another crucial lesson has to do with entering new markets.

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