Key Market Milestones for 2026 Expansion

And we likewise have Clinton Anderson, the CEO of 4th, who will be moderating the conversation with Jason. Jason, how about I let you give the audience some details about your background and you can also tell them a little bit about Chop Shop.

Thanks Christina. My name is Jason Morgan, CEO of Original Chop Shop. I've been doing this for about nine years now. We bought the brand in 2016three unitsand I've grown it to 26. Prior to this, I've spent many of my profession in hospitality in some shape or form. After a quick 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 financing.

I was the very first worker there after personal equity purchased business. Helped grow that from 20 to 150 locations, took it public in 2014, and then left about a year and a half after going public to do this at Chop Shop. 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. The key to the program is we have a beverage component as well with fresh-squeezed juices and protein shakes.

Freddy's Frozen Custard & Steakburgers

A little more complicated than some of the walk-the-line concepts that are out there, however we believe we have actually got something quite unique. We're going to include another store this year and at least 4 shops next year. So we will be 31 approximately stores by the end of next year.

Major Expansion Targets for 2026

I have actually been in this role for about 6 years. Fourth, as many of you know, is a leading service provider of software application options to the restaurant and hospitality market. Our objective is to help our consumers be effective in driving profitability and being efficientmanaging labor, managing inventory, and essentially offering them with tools they need to provide their vision.

It's unusual to have companies that are cherished and growing rapidly, that can duplicate that success every year. Jason, one of the factors I was so fired up to have you join our session is the success at Zos was incredible. I've just fulfilled a handful of brand names where there was such a strong customer affinity for the brand name.

And now you're doing the very same thing at Chop Shop. When you talk to consumers about Chop Shop, they enjoy the place. They discuss its differentiation. And to be able to take what is a fairly complicated idea in terms of delivering a fantastic experience for the customer, and be able to grow that from a couple of shops to now north of 30 shops next yearit's amazing.

We're going to discuss how to scale a dining establishment service. Every restaurateur I ever talk with has dreams of taking one store, two stores, five stores, and turning it into something much biggerexpanding across the city, throughout the state, into multiple states, and ultimately national, even global reach. It's not simple, specifically in today's environment.

Labor is difficult. Inventory costs remain high. It's not a simple time to drive profitability and development at the very same time. We're pleased 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 discuss your experience and the lessons you've found out, we 'd love to then state: well, appearance, how could innovation assist? How can you use technology as a multiplier to duplicate early success to significant success? Second, beyond technology, how do you scale terrific groups? And last but not least, AI.

Fast Casual Industry Growth

The very first concern I have for you, Jasonlook, you have actually done this twice now in the restaurant industry. What are a few of the lessons you've found out? What has your experience been in terms of what it requires to really drive success in expanding restaurants? Tell me a little about your course, what you experienced along the way, and perhaps some of the harder lessons you found out.

We talked a little bit before we started 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 crucial things, and I feel really lucky, is that both brand names I've been included with are unique.

And there's nothing exactly like Chop Store in terms of what we're making with a large, varied menu. The majority of brand names today are very singularly focused in terms of what they're providing from a food product. I feel like we started at an advantage with both brand names by having something distinct that filled a niche no one else was doing.

Since it's just more difficult to stick out when there are 10, 20, 50 principles within a 2- or three-mile radius attempting to do the exact very same thing. A lot of it starts with the brand. Does your brand have something unique that no one else is doing? That's uncommon.

Quick Service Market Share Trends for 2026

The 2nd thingI came from a finance background, so a lot of my knowings are more finance and data-driven versus a lot of early startup restaurateurs who are innovative types. They like the food, they constructed the menu, they constructed the brand. I probably could not do that from scratch. If you offered me something that has all those parts in place, I can take it from there and put the playbook in place.

They don't know their breakeven sales. They don't comprehend how margin improves as sales boost. They do not understand cash-on-cash returns. I've seen numerous companies where the numbers simply don't work. And yet individuals say: let's open 10 more. And I'll say: why? It doesn't earn money. Stop. You need to discover a concept that is unique.

Freddy's Frozen Custard & Steakburgers

If you do not have those 2 things, you should not be developing shops. Because as I hear your description, you've highlighted three things: execution, brand name distinction, and financial viability.

Corporate Growth Targets in 2026

Second, you require an engaging brand or special principle that resonates with consumers. And another essential lesson is about going into new markets.

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