Original ChopShop today reported financial results for its second quarter, which ended on July 11.
Second quarter results for the 12 weeks ending July 11, 2021, include:
- Total revenue increased 60% compared to 2020 and 89% compared to 2019;
- Same-store sales increased 51% compared to 2020 and 39% compared to 2019;
- Average weekly sales were $49,000 per Shop; and,
- Shop-level EBITDA margin was 18.3%.
Year-to-date results for the 28 weeks that ended July 11, 2021, are:
- 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; and,
- Off-premise sales accounted for 74% of net sales.
“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,” says Jason Morgan, CEO of Original ChopShop. “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. We are also excited to announce that Atlanta will be our fourth market, with the first Shop 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.”
“Our digital presence has been a key component of the brand’s sales growth,” Morgan continues. “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.”
The Original ChopShop Chops app and loyalty program launched in August 2020 and was designed to create a faster, more convenient guest experience. Over the last year, the brand has registered 115,000 new loyalty members and garnered more than 50,000 app downloads. Today, 65% of Original ChopShop’s direct digital orders are placed through the app. The brand has utilized the program to strategically introduce guests to different dayparts and menu items. 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.
Hiring and maintaining top talent has been instrumental to Original ChopShop’s success. Throughout the pandemic, the brand retained all salaried managers. Since March of 2020, the company has paid an average of 120% of general manager performance bonuses and all managers received an additional spot bonus after an exceptional Q1 2021. The brand has also introduced career trajectory to support team members’ personal and professional development.
“At Original ChopShop, our mission to inspire others to ‘Just Feel Good’ begins and ends with our team,” Morgan says. “Their commitment and dedication are the foundation of our brand. Providing a positive work environment and growth opportunities for our team will remain our top priority as we continue to grow.”