Jason Morgan, CEO of Original ChopShop, the fast-casual chain with 26 locations known for healthy protein bowls and sandwiches, believes in the number three.
Jason Morgan, CEO of Original ChopShop
“If we can get you into our store three times, your propensity to return is 90 percent,” he said during an interview at the National Restaurant Association Show. “We have done a lot of work in trying to get those first three visits to happen fast. Our whole program is built around that.”
The brand’s program features a number of digital tactics that are looking like jackpots.
“Fifty-four percent of our business comes through digital channels,” he said. “Half of that are first-party orders, half are third party. And if you add kiosks to that, it’s another 20 percent.”
Morgan would love to grow the share of first-party orders. But he’s reconciled to the value of third-party marketplaces.
“I used to think it was possible to convert third-party customers to first party. I don’t know if it is anymore. I mean I’ll still hop on DoorDash and order food for my family when I know I should be going to the restaurant’s website. It’s just too easy to go to one marketplace to find what you need,” he said. “Our approach is if consumers want to order there, we’ll charge them extra. We’re going to cover the fees. We view third party as a mechanism to grow brand awareness.”
None of this digital growth just magically happened. It took vision and commitment to try new things.
This was right before the pandemic. Having Olo in place when in-store commerce collapsed was fortuitous.
“We were prepared and could integrate with third-party networks easily,” he said. “We spun up curbside delivery in 48 hours. That was huge for us.”
Loyalty is also an essential part of the brand’s mix. Morgan hat-tips a different partner on that.
“We started working with Paytronix on a loyalty app in the summer of 2020 and it took off like a rocketship,” he said. “Today 45 percent of our direct transactions are attached to loyalty.”
The brand is so sold on a digital-forward approach that it recently opened two stores with enhanced to-go optimization, including a drive-thru mobile-order pickup window and a full self-order technology package. It has also introduced digital menu boards to all of its stores.
The Bite kiosks the band has brought in have more than proven their worth.
“About half of our in-store transactions come through kiosks,” he said, “and our check size is 8 percent higher than our dine-in checks.”
Morgan figures he knows why.
“Our menu is big. We have 50-plus items in our menu, ranging from protein bowls to salads and sandwiches. It’s a very diverse menu. Having the kiosks with the picture of the food in front of you makes it easier to decide. It’s easier than staring up at a board. With kiosks they can see their protein bowl, they can see that they can add avocado, they can see all the things right there at their fingertips. I think that’s what’s driving the kiosk sales,” he said.
It would seem his confidence in his three-visits-and-you’re-ours approach is paying off.
Three is a magical number to him. When Hargett Hunter Capital Partners in 2016 , which Morgan was a part of, bought a majority stake in Original ChopShop, the brand only had three locations. Now it has 26. Making smart decisions on tech and operations has been crucial.
“Very early on we built a nice tech stack and we’ve been adding to it as we’re absorbing new things along the way,” he said. “We brought in new systems for just about everything, processes, procedures, training.”
All of this is leading to a distinct upward trajectory.
“We are opening two stores this year, one in College Station and one in Phoenix, and we have plans for four more next year,” he said. “Things are looking good for us.”
