Expansion News: New Developments in 2026

Growing a restaurant from one or 2 locations into a multi-unit chain is the dream of many operators., to unpack the lessons learned from scaling two effective restaurant brand names.

Many brand names go after expansion before the fundamental engine is strong. As Jason kept in mind, "expansion of an inadequate operating model is a disaster." Unless you already have actually: A differentiated brand that resonates A tested unit economics design And functional rigor you run the risk of watering down quality, overspending, and hitting underperformance faster than you expect.

Freddy's Frozen Custard & Steakburgers

variable cost structure, and margin curves as sales scale. Jason shared that lots of operators don't understand their break-even sales or marginal margin gain as volume boosts, and yet they green light brand-new systems. This isn't simply theory. As Restaurant Organization notes, operators that jeopardize on unit economics "generally stop growing sustainably" as inflation, labor pressure, and rent continue to rise.

Is Scaling a Best Move?

Brand names with clear cost exposure and disciplined growth are weathering inflation far better than those going after volume for its own sake. When growth is built on nontransparent assumptions, you're basically betting with capital. From the webinar, Jason and Clinton's discussion appeared three non-negotiable pillars for scaling well. Lots of brands can talk distinction, but couple of perform consistently across markets.

Guaranteeing your operating model truly works before expansion is the difference between scaling success and multiplying inadequacy. Jason stressed that both ChopShop and his prior brand, Zos Cooking area, prospered since they used something couple of others were doing. When your principle is too generic (burgers, pizza, tacos), you complete on margin alone.

The mathematics needs to operate at the first day, month 12, and year three. Jason talked about cash-on-cash returns, breakeven volumes, and margin enhancement curves. Without clear financial criteria, expansion ends up being uncertainty. Assuming new markets will open at full-blown, home-market volume is among the riskiest mistakes a chain can make. In the webinar, Jason shared that in Dallas, ChopShop expected brand-new systems to strike 50-70% of Phoenix volumes.

Freddy's Frozen Custard & Steakburgers

Major Expansion Targets in 2026

Some lessons from Jason's experience: Accept that brand-new shops will open slowly. These strategies assist prevent overextending early and permit local brand name momentum to build organically.

Jason described how ChopShop built career courses from hourly roles all the way to local management. Some of their key people metrics: Per hour turnover around 97% (approximately half what industry norms frequently report) GM tenure surpassing 4.5 years Over 80% of GMs promoted internally They also produced "AGM-in-training" roles to prepare new managers before a store opens, a smarter, proactive method to grow bench strength.

It's uncommon (and a little adventurous) to make an IT lead your fourth hire, however that's specifically what Jason did at ChopShop. Their tech stack enabled the organization to seem like a 150-unit brand even when they had just 18 places, a durability benefit when COVID hit. Key tech investments consisted of: A modern POS (instead of tradition systems) Back-office systems and inventory tools An information storage facility (Mirus) to create genuine reporting Digital buying and loyalty combinations (today 74% of sales are digital, and 40% bring loyalty IDs) As highlights, technology is no longer optional, it's how operators scale predictably, manage costs, and reduce risk.

If expansion outmatches your bench, quality erodes. Scaling isn't simply about shop count, it's about growing a business that keeps brand name identity, quality, and purpose.

Fast Casual Market Share Trends for 2026

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

Our session is all about the growth playbook for dining establishment CEOs with an interesting guest speaker I will present temporarily. And simply as individuals are joining and signing on, I'll use this time to cover a fast couple of housekeeping notes.