High-ROI Hospitality Ventures Coming in 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 company. To me, one of the essential things, and I feel very fortunate, is that both brands I've been involved with are special.

And there's nothing exactly like Chop Store in regards to what we're making with a big, diverse menu. Most brands today are extremely singularly focused in terms of what they're providing from a food. I seem like we started at a benefit with both brand names by having something unique that filled a specific niche no one else was doing.

Because it's just harder to stand out when there are 10, 20, 50 ideas within a 2- or three-mile radius trying to do the specific same thing. So a lot of it starts with the brand name. Does your brand have something unique that nobody else is doing? That's rare.

The second thingI came from a finance background, so a lot of my learnings are more financing and data-driven versus a lot of early start-up restaurateurs who are innovative types. They like the food, they built the menu, they developed the brand.

They don't understand their breakeven sales. They do not understand how margin enhances as sales increase. I've seen so numerous companies where the numbers just do not work.

How to Expand a Dining Concept

If you do not have those 2 things, you should not be developing shops. Yeah, perhaps both, right? Because as I hear your description, you've highlighted 3 things: execution, brand name differentiation, and monetary viability. You have actually got to start with execution. If you don't have an operating model that works, broadening it just multiplies issues.

Second, you need an engaging brand name or special idea that resonates with customers. And another essential lesson is about entering brand-new markets.

When we broadened to Dallas, I expected brand-new shops to do 5070% of Phoenix sales in the first year. Too lots of operators presume new markets will open at complete volume the first day. That almost never happens. And when the shops open slow, however you've signed leases and constructed a monetary model based upon higher volumes, you get overextended.

Otherwise, they get rose-colored glasses about success in the home market and assume it will translate rapidly. You pointed out expecting 5070% volumes. I have actually even seen cases where it's just 2530% at launch.

Freddy's Frozen Custard & Steakburgers

Corporate Expansion Milestones in 2026

You require equity sponsors who believe in the vision and the team. That's pricey, however it produces important mass, develops awareness, and validates above-store management.

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

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

Essential Tips for Growing Hospitality Brands

Otherwise, they get rose-colored glasses about success in the home market and assume it will equate rapidly. You pointed out anticipating 5070% volumes. That's sobering. I have actually even seen cases where it's simply 2530% at launch. It underscores how important capital structure is. Yes. The majority of little development concepts like ours rely on equity, not debt.

You require equity sponsors who think in the vision and the team. That's expensive, but it develops vital mass, develops awareness, and validates above-store management.

At Chop Shop, we intentionally developed strong bases in Phoenix and Dallas. That provided us the profitability to hold up against slow starts in Houston and Atlanta. And we were fortunate that Dallasour second marketwas likewise where our group lived. Having the entire team in-market to support shops, hire, and make sure culture was huge.

Freddy's Frozen Custard & Steakburgers

Individuals typically underestimate how crucial team is to scaling. Our group took all the things we hated from past jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here.

Otherwise, they get rose-colored glasses about success in the home market and presume it will equate rapidly. You discussed expecting 5070% volumes. I've even seen cases where it's just 2530% at launch.

Freddy's Frozen Custard & Steakburgers

Significant Market Shifts Shaping 2026 Growth

You require equity sponsors who believe in the vision and the team. That's expensive, however it creates important mass, builds awareness, and validates above-store management.

At Chop Shop, we deliberately developed strong bases in Phoenix and Dallas initially. That gave us the profitability to stand up to sluggish starts in Houston and Atlanta. And we were fortunate that Dallasour second marketwas also where our team lived. Having the entire team in-market to support stores, hire, and ensure culture was substantial.

Individuals typically ignore how vital team is to scaling. How have you approached building and scaling your group? This is something I'm really happy of. Our group took all the important things we hated from previous jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here. We highlight development frame of mind and career pathing.