Top Advantages of Restaurant Franchising in 2026

We talked a 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 key things, and I feel extremely lucky, is that both brand names I've been involved with are distinct.

And there's absolutely nothing exactly like Chop Store in regards to what we're doing with a large, varied menu. The majority of brands today are extremely singularly focused in terms of what they're using from a food. I feel like we began at an advantage with both brands by having something unique that filled a specific niche nobody else was doing.

Since it's just harder to stick out when there are 10, 20, 50 ideas within a 2- or three-mile radius trying to do the exact same thing. A lot of it starts with the brand name. Does your brand name have something special that no one else is doing? That's unusual.

The 2nd thingI came from a financing background, so a great deal of my knowings are more finance and data-driven versus a lot of early start-up restaurateurs who are creative types. They enjoy the food, they developed the menu, they built the brand. I probably couldn't do that from scratch. But if you provided me something that has all those components in location, I can take it from there and put the playbook in place.

They don't know their breakeven sales. They don't understand how margin improves as sales boost. They don't comprehend cash-on-cash returns. I've seen many business where the numbers just don't work. And yet people state: let's open 10 more. And I'll say: why? It does not make cash. Stop. You require to find a concept that is special.

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If you don't have those 2 things, you should not be constructing stores. Yeah, possibly both? Because as I hear your description, you've highlighted three things: execution, brand name distinction, and financial viability. You have actually got to begin with execution. If you do not have an operating design that works, expanding it simply multiplies problems.

Second, you need an engaging brand name or special principle that resonates with clients. And third, the math has to work. If you don't comprehend your system economics, your repaired and variable costs, you might be broadening blind and losing money. Exactly. And another essential lesson is about going into new markets.

However when we broadened to Dallas, I expected new shops to do 5070% of Phoenix sales in the first year. A lot of operators presume brand-new markets will open at full volume the first day. That almost never takes place. And when the stores open sluggish, but you have actually signed leases and built a financial model based upon greater volumes, you get overextended.

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

Freddy's Frozen Custard & Steakburgers

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You need equity sponsors who think in the vision and the group. That's costly, but it develops crucial mass, develops awareness, and justifies above-store management.

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

People frequently undervalue how crucial team is to scaling. How have you approached structure and scaling your group? This is something I'm actually happy with. Our team took all the important things we hated from previous jobsfeeling underappreciated, underpaid, growth-stifledand developed the opposite culture here. We emphasize development state of mind and profession pathing.

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

You need equity sponsors who believe in the vision and the group. That's costly, however it creates important mass, constructs awareness, and validates above-store management.

And we were fortunate that Dallasour 2nd marketwas also where our team lived. Having the entire group in-market to support stores, hire, and ensure culture was substantial.

Freddy's Frozen Custard & Steakburgers

People frequently underestimate how vital group is to scaling. Our group took all the things we hated from previous jobsfeeling underappreciated, underpaid, growth-stifledand built the opposite culture here.

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

Freddy's Frozen Custard & Steakburgers

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

And we were fortunate that Dallasour second marketwas also where our team lived. Having the entire team in-market to support stores, hire, and make sure culture was big.

People often undervalue how critical team is to scaling. Our team took all the things we disliked from previous jobsfeeling underappreciated, underpaid, growth-stifledand developed the opposite culture here.