Original ChopShop today reported financial results for its third quarter, which ended Oct. 3.
Third quarter results for the 12 weeks ending Oct. 3, 2021, include:
- 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; and,
- Shop-level EBITDA margin was 18.0%.
Year-to-date results for the 40 weeks that ended Oct. 3, 2021, are:
- 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 is positive after corporate expenses;
- Digital sales accounted for 46% of total revenue compared to 36% in 2020 and 13% in 2019; and,
- Off-premise sales accounted for 73% of net sales.
“Our remarkable sales results have a direct correlation with the uniqueness of our brand, our emotional connection with our guests and, most of all, the strength of our team,” says 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. 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.”
The Chops app and loyalty program launched in August 2020 and was designed to create a faster, more convenient guest experience. In Q3 2021, 69% of Original ChopShop’s direct digital orders were placed through the app. The brand is leveraging data insights from the app to engage with guests through new programs and promotions. This holiday season, when guests load $50 in-app before Dec. 31, 2021, they will receive $3 off every day in January 2022.
Building and retaining a strong team continues to be one of Original ChopShop’s top priorities. The brand recently launched an innovative new guest referral program that allows guests to refer new team members and earn a $50 in-app reward if the individual is hired.
On the development side, the neighborhood eatery recently entered a new market, opening its first Shop in the Houston area on Oct. 15. A second Houston opening is quick to follow in early January 2022. Original ChopShop is also set to expand into its fourth market – Atlanta – in 2022. The brand anticipates seven Shop openings next year in Atlanta, Dallas, Houston and Phoenix, which will bring its total unit count to 23.
Original ChopShop provides a warm, welcoming place where guests “Fuel Their Well-Being” with flavorful food that’s “Chopped-in-Shop” daily with real, quality ingredients. The menu includes delicious protein bowls, salads (“chops”), sandwiches, fresh juice, protein shakes, acai bowls, breakfast items and parfaits. The team at Original ChopShop is proud to offer customizable food for “Every/Body,” providing a variety of dietary-friendly items for adults and children, including food free of gluten, dairy, lactose and soy, along with vegetarian and vegan options.
