Turn. Over. a New. Leaf. OWN a Chop Stop Franchise! One of the 5 Best Salad Chains in America. The Daily Meal 1

Transcription

1 Over Turn a New Leaf OWN a Chop Stop Franchise! One of the 5 Best Salad Chains in America. The Daily Meal 1

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3 A CHOP IS BORN COMPANY HISTORY CHOP STOP WAS CONCEIVED from a frustrated craving for chopped salads and nowhere to buy them. I could sometimes find a single chopped salad on a menu, founder Mark Kulkis recalls. But even those were few and far between. I couldn t believe a health-conscious city like L.A. didn t offer more. So Kulkis decided to take matters into his own hands. For me, the key was to chop all the ingredients really fine, so the flavors and textures combined in every bite. I also like a lot of stuff in my salads such as meat, cheese and fun toppings like fried onions. I made them the way I wanted to eat them. WHEN HE SHARED HIS CREATIONS with friends, their rave reviews convinced him that he could make a business of it. He joined forces with Joey Gonzalez, a veteran restaurant operator with over 20 years experience, and in December 2010 they opened the first Chop Stop in Burbank, California. It was an immediate success and the team proceeded to open an additional location each year after that, culminating with their huge Glendale franchise Training Restaurant in Chop Stop now has a total of seven restaurant locations (five corporate and two franchise) throughout Southern California and are looking to expand our salad franchise to other regions throughout the western United States. 3

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5 MORE THAN A SALAD COMPETITIVE ADVANTAGES AS OUR TRADEMARKED SLOGAN INDICATES, our signature chops are More than a salad. First and foremost, our finely chopped ingredients enhance both the flavor and texture of our salads. They also make them easy to eat on the go. (Yes, you really can eat them with a spoon!) Additional competitive advantages Chop Stop enjoys over rivals include: Generous portion size (over a pound) Lightning fast speed of service for lunchtime market. Average time from start of order to receiving food = 3.4 mins. Proprietary dressings Chopping preparation difficult to replicate at home Healthy eating = fastest growing segment of the restaurant industry 5

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7 FEED THE N ADDICTION CUSTOMER BASE Chop Stop is not merely a restaurant. It s an addiction. Other restaurants have customers. We have a legion of manic fans who stalk us and claim they can t live without us. (Hey, we re not complaining.) These fans men, women and the all-important millennials come from all walks of life, united in their passion for our chopped salads. But don t just take our word for it. Read a sampling of our recent tweets! Daniel I wish I could eat salad every day of my life Ceci I m a little too obsessed I today and I already want it again tomorrow yesterday. Ate it for dinner last night, lunch today, and dinner tonight. JUDGE ME (no plug, just the beautiful truth) Ms Craving chop stop 24/7 Elsa 3:30 a.m. & all I m thinking about is having Chop Stop for lunch tomorrow common Yea I guess alcohol & drugs are cool BUT HAVE YOU TRIED CHOP STOP Marla Been a week since I ve #thoughtiwasgoingtodie How did I ever live without chop stop If you had to eat one thing for the rest of your life, what would it be? Chop Stop 7

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9 BY THE NUMBERS FINANCIAL PERFORMANCE 2017 Gross Sales & Major Expenses City Burbank Encino Studio City Rancho Glendale Gross Sales $1,361,022 $1,113,967 $968,919 $983,782 $938,824 Cost Of Goods $416,890 (30.63%) $341,047 (30.62%) $301,655 (31.13%) $313,544 (31.87%) NA* Labor & Benefits Expenses $393,020 (28.88%) $325,451 (29.22%) $308,439 (31.83%) $338,646 (34.42%) NA* Comps & Discounts $24,427 (1.79%) $25,165 (2.26%) $20,102 (2.07%) $22,378 (2.27%) NA* * We have excluded costs figures for our company-owned Glendale Restaurant because it is our designated training location and, as a result, incurs Costs of Goods and Labor Expenses that are materially higher than and not representative of a typical company-owned or franchised Restaurant. Gross Sales Increases City Burbank Encino Studio City Rancho Glendale 2012 to % 8.98% NA NA NA 2013 to % 9.74% NA NA NA 2014 to % 21.92% NA NA NA 2015 to % 17.18% 13.17% NA NA 2016 to % 17.18% 4.86% NA NA Tables 1 and 2 above contain information for 4 company-owned and 1 franchised Chop Stop restaurants that were open and continuously operating for at least 12 months as of the end of our 2017 fiscal year (December 31, 2017) under our standard format. Our standard format requires the Restaurant to have access to a dedicated parking lot and a minimum footprint of at least 900 interior square feet. One location does not operate under the standard format and was excluded. The information included in Table 1 is for Chop Stop s 2017 fiscal year (Jan. 2, 2017 thru Dec. 31, 2017). Gross Sales means the aggregate amount of all sales of goods and services at the Restaurant, excluding taxes. Table 2 lists the percentage increase (or decrease) in year-over-year same store sales for Chop Stop restaurants that have been open and continuously operating under our standard format from the beginning of CS s 2012 fiscal year through the end of CS s 2017 fiscal year. Some Restaurants have sold the amounts listed above. Your individual results may differ. There is no assurance that you will sell as much. 9

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11 BUILD YOUR FUTURE RESTAURANT DESIGN OUR BUILD-OUTS ARE EASIER, faster, and less expensive than many other restaurants. Our locations are compact ( sq ft). No hood or grease interceptor are required. * Permitting is easier. A retail takeout food designation will often work instead of a full restaurant permit. * DESIGNED FOR SPEED, our production line is located in the back of the house, out of view of the customer. This streamlines the process and enables us to get our salads out faster during busy lunchtime rushes. It also promotes a certain mystique about the process when the customer is magically presented with a perfectly chopped salad! Meanwhile, our dining room features bamboo o floors, green counters and dark wood furniture, re, creating an atmosphere that is both modern yet also warm and inviting. *Subject to local regulations 11

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13 GREENER PASTURES your questions answered Where can I open a Chop Stop? Our current efforts are focused on the West Coast (California, Arizona, Nevada, Oregon, Colorado, Utah and Washington). However, we are open to other areas of the country if we get enough franchise interest within a region. We want to expand quickly but intelligently, and it is all about having the proper regional infrastructure to support our Chop Stop salad franchises. How much will it cost to open my restaurant? The total investment necessary to begin operation of a Chop Stop salad restaurant is estimated to be from $285,000 to $490,000. This includes the initial franchise fee. How much is the initial franchise fee? $30,000. How much cash do I need to have in the bank? You need a minimum $100K available cash. Property and other collateral assets do not count as cash. How much are the royalty and advertising fees? The royalty fee is 5% of your weekly net sales as defined in our franchise agreement, and the advertising fee is up to 2.25% of your weekly net sales. What kind of training and support will I receive? We pride ourselves on our extraordinary franchise support. We will hold your hand through every step of the process, from real estate negotiation to your grand opening and beyond. Our salad franchise training course is six weeks long for three people. Are you a member of VetFran? Yes! Honorably discharged, full-time veterans receive a 33% discount off the initial franchise fee. 13

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15 TRANSFORM YOUR LIFE CALL NOW THEY SAY THE GRASS IS ALWAYS GREENER on the other side of the fence. Well in the case of Chop Stop, it s true! Jump the fence and enjoy the greener pastures of: Being a rock star to legions of obsessed Chop Stop fans! Being your own boss Building a solid financial future Why wait? Take your first step down the road to becoming a Chop Stop salad franchisee today, while territories are still wide open! Call us today at (818) and ask to speak with a franchise salesperson. Or us at franchise-info@chopstop.com.. Chop Stop Franchising, Inc., 4515 Ocean View Boulevard, Suite 315, La Cañada Flintridge, CA THESE FRANCHISES HAVE BEEN REGISTERED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF CALIFORNIA. SUCH REGISTRATION DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE COMMISSIONER OF CORPORATIONS NOR A FINDING BY THE COMMISSIONER THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING. 15

16 . When you chop a salad so fine you can eat it with a spoon, the flavors combine for a taste explosion in every bite. Design your own chop from over 40 fresh toppings or simply select one from our menu. Chop Stop More Than a Salad ChopStopFranchising.com 16

17 FACT SHEET Opened January 7th, N San Fernando Blvd, Burbank, CA Opened August 2nd, Ventura Blvd, Encino, CA Opened September 2nd, Santa Monica Blvd, West Hollywood, CA Opened February 26th, Ventura Blvd, Studio City, CA Opened April 6th, N Glendale Ave, Glendale, CA FRANCHISE LOCATIONS Opened June 13th, E Foothill Blvd, Rancho Cucamonga, CA Opened September 26th, McBean Pkwy, Santa Clarita, CA CORPORATE OFFICE 4515 Ocean View Blvd, STE 315 La Canada Flintridge, CA (818) Press Contact Richelle Davis (ext. 17) richelle@chopstop.com CHOPSTOP.COM CHOPSTOPFRANCHISING.COM