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Operations

Original ChopShop's Q2 sales skyrocket

August 17, 2021

It's been a cool summer for Arizona-based Original ChopShop, which reported last week that Q2 same-store sales were up 51% compared to 2020 and 39% compared to 2019.

"These outstanding results are attributable to the strength of our team and brand, our continued innovation in technology and an intense focus on operational excellence," CEO Jason Morgan said in a company press release. "Our success in two very historically competitive restaurant markets — Dallas and Phoenix — gives us confidence as we enter our third major market — Houston — later this month."

Morgan said Atlanta would be the chain's fourth market, with the first location opening in early 2022.

"We anticipate opening a total of seven Shops within these four markets in 2022, which will increase our total Shop count to 24," he said.

Q2results for the 12 weeks ending July 11, 2021, included:

  • Total revenue increased 60% compared to 2020 and 89% compared to 2019.
  • Average weekly sales were $49,000 per Shop.
  • Shop-level EBITDA margin was 18.3%.

Year-to-date results for the 28 weeks that ended July 11, 2021, were:

  • Total revenue increased 52% compared to 2020 and 78% compared to 2019.
  • Same-store sales increased 46% compared to 2020 and 32% compared to 2019.
  • Average weekly sales were $46,000 per Shop.
  • Shop-level EBITDA margin was 19.6%.
  • Digital sales accounted for 48% of total revenue compared to 35% in 2020 and 14% in 2019.
  • Off-premise sales accounted for 74% of net sales.

Digital acceleration

The Original ChopShop Chops app and loyalty program launched in August 2020, and over the last year, it has registered 115,000 new loyalty members and garnered more than 50,000 app downloads.

"Our digital presence has been a key component of the brand's sales growth," Morgan said. "For the full year of 2021, the shops are anticipated to average $1.2 million in digital sales with overall average unit volumes in excess of $2.4 million. We have invested in technology over the last few years, and the infrastructure is in place to support the next several years of unit growth."

Today, 65% of Original ChopShop's direct digital orders are placed through the app.

In May 2020, Original ChopShop introduced an internal delivery platform, which allows its own team members to deliver direct digital orders placed through originalchopshop.com or the Chops app. By choosing to order direct, guests receive their order 15 minutes faster, spend 25% less and enjoy a better experience, compared to orders placed through third-party delivery apps, Morgan said.

Founded in 2013 in Old Town Scottsdale, Arizona, Original ChopShop has 15 locations in Phoenix and North Texas and is continuing expansion with two Houston openings in 2021.





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