Restaurant Industry Trends Shaping 2026

We talked a little 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 very lucky, is that both brand names I have actually been involved with are unique.

And there's absolutely nothing precisely like Chop Shop in regards to what we're finishing with a big, diverse menu. Many brand names today are really singularly focused in terms of what they're providing from a food. I seem like we began at a benefit with both brand names by having something unique that filled a niche nobody else was doing.

Due to the fact that it's just harder to stand out when there are 10, 20, 50 ideas within a 2- or three-mile radius attempting to do the precise very same thing. A lot of it starts with the brand. Does your brand have something special that no one else is doing? That's rare.

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

They don't understand their breakeven sales. They don't comprehend how margin enhances as sales increase. They do not comprehend cash-on-cash returns. I've seen so many business where the numbers simply do not work. And yet individuals say: let's open 10 more. And I'll say: why? It doesn't earn money. Stop. You need to find a concept that is special.

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If you do not have those two things, you shouldn't be building shops. Because as I hear your description, you've highlighted three things: execution, brand differentiation, and monetary viability.

Second, you require an engaging brand name or distinct principle that resonates with clients. And third, the math has to work. If you do not understand your system economics, your repaired and variable costs, you might be expanding blind and losing money. Exactly. And another essential lesson is about getting in new markets.

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

Otherwise, they get rose-colored glasses about success in the home market and presume it will equate rapidly. You mentioned anticipating 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. A lot of little growth ideas like ours depend on equity, not debt.

Freddy's Frozen Custard & Steakburgers

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You require equity sponsors who think in the vision and the team. Another lesson: you require to open four to 6 shops in a brand-new market within 2 to three years. That's expensive, but it develops critical mass, constructs awareness, and validates above-store leadership. Without it, you stay slow and unprofitable.

At Chop Shop, we deliberately developed strong bases in Phoenix and Dallas. That gave us the profitability to hold up against sluggish starts in Houston and Atlanta. And we were lucky that Dallasour 2nd marketwas also where our group lived. Having the entire group in-market to support shops, hire, and guarantee culture was substantial.

People often ignore how critical group is to scaling. Our team took all the things we hated from past jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here.

Restaurant Industry Trends Shaping 2026

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

So you require equity sponsors who think in the vision and the team. Another lesson: you need to open four to 6 shops in a brand-new market within 2 to 3 years. That's costly, however it develops vital mass, constructs awareness, and validates above-store management. Without it, you remain sluggish and unprofitable.

At Chop Store, we intentionally developed strong bases in Phoenix and Dallas. That provided us the success to withstand slow starts in Houston and Atlanta. And we were fortunate that Dallasour 2nd marketwas also where our group lived. Having the whole group in-market to support stores, hire, and make sure culture was huge.

Freddy's Frozen Custard & Steakburgers

Individuals often undervalue how crucial group is to scaling. How have you approached structure and scaling your team? This is something I'm actually pleased with. Our group took all the things we disliked from past jobsfeeling underappreciated, underpaid, growth-stifledand developed the opposite culture here. We emphasize development frame of mind and career pathing.

Otherwise, they get rose-colored glasses about success in the home market and presume it will equate quickly. You pointed out anticipating 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. The majority of small growth concepts like ours count on equity, not debt.

Freddy's Frozen Custard & Steakburgers

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You require equity sponsors who think in the vision and the team. Another lesson: you need to open 4 to 6 stores in a new market within two to 3 years. That's pricey, but it develops emergency, develops awareness, and justifies above-store management. Without it, you stay sluggish and unprofitable.

At Chop Shop, we deliberately built strong bases in Phoenix and Dallas first. That offered us the success to hold up against sluggish starts in Houston and Atlanta. And we were lucky that Dallasour 2nd marketwas also where our team lived. Having the entire group in-market to support stores, hire, and ensure culture was big.

Individuals frequently undervalue how crucial team is to scaling. How have you approached structure and scaling your group? This is something I'm really proud of. Our group took all the things we disliked from previous jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here. We highlight development state of mind and profession pathing.