Operations

Original ChopShop's sales soar in Q3

Provided

November 30, 2021

Original ChopShop's same-store sales were up 37% for the third quarter over 2019 and its average unit volumes were trending above $2.5 million, said Original ChopShop CEO Jason Morgan.

"We have built a scalable platform supported by technology that is producing $2.5 million average unit volumes, a 50%+ cash-on-cash return, and positive EBITDA after corporate expense," he said in a company press release. "Our unit growth continued last month as we entered our third market of Houston and the early results are promising. Our growth will continue next year with seven shop openings in existing markets of Phoenix, Dallas and Houston as well as our first shops in Atlanta."

Third-quarter results for the 12 weeks ending Oct. 3, 2021:

• Total revenue increased 42% compared to 2020 and 82% compared to 2019.
• Same-store sales increased 42% compared to 2020 and 37% compared to 2019.
• Average weekly sales were $48,000 per shop.
• Shop-level EBITDA margin was 18%.

Year-to-date results for the 40 weeks that ended Oct. 3, 2021:

• Total revenue increased 48% compared to 2020 and 79% compared to 2019.
• Same-store sales increased 46% compared to 2020 and 33% compared to 2019.
• Average weekly sales were $46,000 per shop.
• Shop-level EBITDA margin was 19.1%.
• EBITDA was positive after corporate expenses.
• Digital sales accounted for 46% of total revenue compared to 36% in 2020 and 13% in 2019.
• Off-premise sales accounted for 73% of net sales.

Part of the chain's success stems from The Chops, its app and loyalty program launched in August 2020, Morgan said. In Q3 2021, 69% of Original ChopShop's direct digital orders were placed through the app.

Founded in 2013 in Old Town Scottsdale, Arizona, Original ChopShop has 16 locations in Phoenix, Dallas and Houston.