Jason Morgan, CEO, Original ChopShopJason Morgan, CEO, Original ChopShopFounded in Scottsdale, Ariz., in 2013 by three young entrepreneurs craving a fresher, better-for-you fast-casual experience, Original ChopShop was acquired in 2016 by Hargett Hunter Capital Partners (HHCP). Now headquartered in Plano, Texas, the brand has grown from 3 units at the time of acquisition to 26 stores in Texas, Arizona and Georgia, all company owned. It offers a diverse menu across all dayparts, emphasizing organic, “feel good” meals and snacks.

CEO Jason Morgan, former managing partner at HCCP, assumed leadership of Original ChopShop in 2016. It’s not his first fast-casual rodeo: From 2008 to 2015, Morgan was CFO of Zoës Kitchen. He helped shepherd that brand from 20 to 150 units with revenues of $223 million before it went public in 2014. Original ChopShop’s growth so far has been relatively slow and measured. Morgan tells us why — and what’s in store for the brand moving forward.

What attracted you to sign on to lead Original ChopShop? 
JM: About a year and a half after Zoës Kitchen went public, I was ready to do something else. I joined the private-equity group and ultimately hoped to find another start-up to lead, applying what I’d learned at Zoës to help it grow. We met the founders of ChopShop, who knew they had something special but weren’t sure what to do with it. The first time I walked into a store, I agreed they had something pretty great. Its focus on providing healthful meals at an affordable price was a strong differentiator, and unit economics were solid. We’ve since added 23 units and are preparing for more significant — yet still slow and deliberate — growth.
Image courtesy of Original Chop ShopImage courtesy of Original Chop Shop
What are some ways in which you’re positioning for growth?
JM: Introducing new technologies has been a big initiative. Even before COVID, we had online ordering and a digital platform in place, which was fairly unique for a small company. We launched a loyalty program in summer 2020. Today, about 45% of our direct sales have a loyalty number attached to them, and we’re driving north of 50% in digital sales. Half of that is coming directly through our website or app, with the majority through the app. We’ve also recently put kiosks in all of our restaurants as a self-order option, and we’re introducing digital menu boards. Our menu is large and diverse — 45 to 50 items — so those two moves have really helped in terms of being able to provide guests with visuals and an easier ordering experience. With the kiosks, we’ve also seen average checks increase by 8% compared to orders placed traditionally with a cashier.

How about non-customer-facing technologies?
JM: One key area we’ve worked on is using technology to help us ensure we have the right people in place and to create career-path opportunities. All of our training materials are now video-based or app-based, accessible on your phone or a tablet. That’s been a big help. We have amazing tenure. Our GMs are plus-four years in tenure, and hourly employee average tenure is almost 2½ years. There are a lot of cultural elements around that, but technology has helped as we’ve put new systems in place.

Menu diversity is a ChopShop brand differentiator. What’s the sales mix?
JM: Fifty percent of our volume is sandwiches, 35% is protein bowls and 15% is salads. Our menu items are curated, with defined, chef-developed recipes, but everything can be modified. Beyond those core categories, we have a breakfast menu and a heavy beverage and snack component. We do chia puddings, acai bowls, fruit and yogurt parfaits, fresh juices, protein shakes, hummus and chips. It’s an all-day, every-day concept. As for dayparts, lunch is about 45% of sales, dinner 20%, breakfast 15% and the rest happens in between. And off-premises sales have remained strong, at about 75% now compared to 55% pre-COVID.

You recently introduced a new freestanding prototype. What are the highlights?
JM: Yes, we opened our first ground-up, freestanding Original ChopShop in Tucson, Ariz., in June, and another in Fort Worth, Texas, in late summer. I’d always been jealous of the folks who had pad sites, but the math never worked for us until we found these deals. In Tucson, the building is about 2,400 square feet, and in Fort Worth around 2,800 square feet. The prototype includes a drive-thru mobile-order pickup window and our full self-order technology package. It’s very open and bright — really beautiful both inside and out. It looks and feels like a ChopShop; the ground-up build gave us a chance to really fill out the design from the outside in. It has a white brick exterior, pitched tin metal roof and lots of glass. It has a bit of a modern farm market/farmhouse vibe. I’m not sure how many freestanding stores like this we’ll be able to open, but we certainly will when the deal works for us. 

Is the new prototype consistent in size with legacy units?
JM: We’ve done stores anywhere from 2,200 to 4,000 square feet, but our sweet spot is right around 2,750 square feet in end-cap locations with patio availability. Our seating ranges from 50 to 60 inside and 15 to 25 outside. We’ve maintained a decent amount of in-store seating, in part because of our strong focus on hospitality and service. Real estate is scarce, however, so when we find a location in a trade area that we like, we tend to focus more on total rent than square footage. If the rent stays in our range, we’ll take extra square footage and find a way to use it. 

What’s in your development pipeline for 2025? Are you entering new markets?
JM: We have two stores already lined up, in College Station, Texas, and central Phoenix, and plan to do at least two more. Those will likely be in one of the major markets we’re already in versus heading into new markets. We still have a lot of room for infill. When we do start looking at new markets, some on our radar are Charlotte, N.C., Nashville, Tenn., and Austin and San Antonio, Texas. 

What are some top development challenges your team faces now?
JM: Finding real estate inside the desirable urban “loop” is very tough. And when something does become available, there are multiple competitors lined up to go after it. As a result, we see more concepts flocking to the suburbs, many of which have now become overbuilt to the point of being unsustainable. Construction costs are another big hurdle. They’ve really never come back down from the increases we saw post-COVID, nor has the time required to build. We used to build out a location in 10 to 12 weeks, but that’s crept up to 16 weeks. It’s also harder than ever to enter new markets. Consumers today are very value-driven and often choose tried-and-true over new, so it takes longer to break even. For smaller brands without cross-market awareness, big marketing dollars or the resources to get a few stores open quickly, it’s risky. We have something super special, and I want more people to experience it sooner. It’s hard to be patient, but we can’t just grow — we have to grow smart.

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