Operations

Original ChopShop same-store sales up 35%

provided

February 9, 2022

Original ChopShop CEO Jason Morgan said the Arizona-based chain's 2021 sales results were proof that it has been meeting guests' needs to "Just Feel Good about what they are eating."

The 16-unit brand, which serves protein bowls, salads, sandwiches and breakfast items from 16 locations in Phoenix, Dallas and Houston, reported that its Q4 same-store sales were up 34% over 2019.

"For the past 15 plus years, I've constantly heard people describe up-and-coming fast casual brands as being the next Chipotle," Morgan said in a company press release. "Chipotle is a great brand to emulate, but at Original ChopShop, we strive to be this generation's Panera. Like Panera, our business is supported by a highly frequent guest that uses the brand for a variety of occasions all day, every day. We have an expansive menu, giving guests multiple better-for-you options that are prepped and made in-Shop daily with whole fruits and vegetables."

Other highlights for Q4 ending Dec. 26 included:

• Total revenue increased 42% compared to 2020 and 71% compared to 2019.
• Same-store sales increased 39% compared to 2020 and 41% compared to 2019.
• Shop-level EBITDA margin was 15.8%.
• 37% of total checks had a loyalty account attached and 71% of direct digital orders originated in the Chops loyalty app.

Year-to-date results for the 52 weeks that ended Dec. 26, 2021, were:

• Total revenue increased 47% compared to 2020 and 77% compared to 2019.
• Same-store sales increased 43% compared to 2020 and 35% compared to 2019.
• Average weekly sales were $46,000 per Shop.
• Shop-level EBITDA margin was 18.3%;EBITDA is positive after corporate expenses.
• Digital sales accounted for 46% of total revenue compared to 37% in 2020 and 15% in 2019.
• All 16 Shops generated record annual sales in 2021 with an average unit volume of $2.4 million.

"Because we have generated positive EBITDA every year, we have not required major cash infusions to fuel our historical growth and do not anticipate requiring future capital raises to fund future expansion," Morgan said. "Over the past five years, we have built Original ChopShop into a scalable brand by implementing a strong technology platform with industry-leading partners like Olo and Paytronix.

Although the technology allows Original ChopShop to operate efficiently and profitably, Morgan said it wasn't a technology company.

"We are a restaurant brand, and restaurants are a people-centric business," he said. "The majority of our 2022 initiatives focus on how we can continue to invest in our team members, because our future success is heavily reliant on their personal growth and success."

Future year 2022 outlook:

• Total revenue growth of 20% to 25%.
• Total EBITDA growth of 35% to 40%.
• Same-store sales are projected to be between 8% and 10% positive compared to 2021.
• Five company-owned shop openings including a second Shop in Houston and a first Shop in Atlanta, bringing total Shops to 21 by year-end.