How to Expand Your Restaurant Concept

Thank you. And we likewise have Clinton Anderson, the CEO of 4th, who will be moderating the discussion with Jason. Jason, how about I let you give the audience some information about your background and you can likewise tell them a little bit about Chop Store. And after that I'll let you take it from there, Clinton.

Thanks Christina. My name is Jason Morgan, CEO of Original Chop Store. I have actually been doing this for about nine years now. We purchased the brand in 2016three unitsand I have actually grown it to 26. Prior to this, I've invested most of my profession in hospitality in some shape or kind. After a brief stint of attempting to be an accountant for about a year and a half, I transitioned into casino property and worked in business finance.

I was the very first employee there after private equity bought the organization. Assisted grow that from 20 to 150 areas, took it public in 2014, and after that left about a year and a half after going public to do this at Chop Shop. My hope is that we can replicate the success we had at Zos, and we're off to an actually great start.

We're at the counter, we bring the food to the table. It is mostly protein bowlsabout 40 percent of the mix. We likewise do salads, sandwiches. The key to the program is we have a drink element too with fresh-squeezed juices and protein shakes. We do all stables, we do breakfast all day.

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A little more complex than a few of the walk-the-line ideas that are out there, but we think we've got something quite special. We're going to include another shop this year and at least 4 stores next year. So we will be 31 approximately stores by the end of next year.

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I have actually been in this role for about six years. Fourth, as many of you understand, is a leading supplier of software application solutions to the dining establishment and hospitality market. Our goal is to assist our clients be successful in driving success and being efficientmanaging labor, handling stock, and generally offering them with tools they require to provide their vision.

It's rare to have companies that are precious and growing rapidly, that can duplicate that success every year. Jason, among the factors I was so excited to have you join our session is the success at Zos was incredible. I have actually only fulfilled a handful of brand names where there was such a strong client affinity for the brand.

And now you're doing the exact same thing at Chop Store. When you speak to customers about Chop Store, they love the location. They speak about its distinction. And to be able to take what is a relatively complex idea in regards to providing an excellent experience for the customer, and have the ability to grow that from a few stores to now north of 30 shops next yearit's incredible.

We're going to speak about how to scale a restaurant service. Every restaurateur I ever talk with has dreams of taking one store, two stores, 5 shops, and turning it into something much biggerexpanding throughout the city, across the state, into numerous states, and ultimately national, even global reach. But it's not simple, especially in today's environment.

It's not a simple time to drive profitability and development at the same time. How do you scale it and make it successful? Second, beyond innovation, how do you scale terrific teams?

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The first question I have for you, Jasonlook, you've done this twice now in the restaurant industry. What are some of the lessons you've found out? What has your experience been in terms of what it takes to actually drive success in broadening dining establishments? Tell me a little about your course, what you experienced along the method, and possibly some of the more difficult lessons you found out.

We talked a little bit before we started about LinkedIn, and I have actually got a post teed approximately follow this next week about what the playbook is likepoint by pointfor growing a business. To me, one of the essential things, and I feel really fortunate, is that both brands I've been involved with are distinct.

And there's absolutely nothing exactly like Chop Store in terms of what we're doing with a large, diverse menu. Many brand names today are very singularly focused in terms of what they're offering from a food. I seem like we began at an advantage with both brand names by having something distinct that filled a niche no one else was doing.

A lot of it starts with the brand name. Does your brand have something unique that no one else is doing?

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The 2nd thingI came from a finance background, so a lot of my knowings are more financing and data-driven versus a lot of early start-up restaurateurs who are creative types. They love the food, they built the menu, they built the brand.

They do not know their breakeven sales. They don't comprehend how margin improves as sales boost. They don't understand cash-on-cash returns. I have actually seen numerous business where the numbers simply do not work. And yet individuals say: let's open 10 more. And I'll say: why? It does not earn money. Stop. You need to find an idea that is special.

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If you do not have those 2 things, you should not be developing shops. Yeah, perhaps both? Since as I hear your description, you've highlighted 3 things: execution, brand differentiation, and monetary practicality. You have actually got to begin with execution. If you do not have an operating design that works, broadening it just increases problems.

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Second, you need an engaging brand or unique concept that resonates with consumers. And another key lesson is about entering brand-new markets.

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