QSR February 2023

Chip Cookies HEADQUARTERS: SALT LAKE CITY, UTAH

UNITS: 11

South Block

The 40/40 List

HEADQUARTERS: ARLINGTON, VIRGINIA

UNITS: 14

During the pandemic, the brand increased its digital footprint and made home delivery acai bowl kits. The focus paid off, with a leap from 20 percent online orders to 60 percent after app ordering was prioritized. The brand has also now implemented kiosk ordering into stores. “We really saw a shift of people leaning into digital ordering through our app, through online ordering, through third party deliv ery companies,” Mostafavi says. “We want to make the ordering process for our guests as seamless as possible, but we still want to make sure that there's that element of culture in our store where we can connect with our guests.” After being in business for over a decade, South Block is still looking to grow. It recently hired the brand’s first COO, Steven Fader, who previously spent 29 years at Whole Foods. The company was also selected to be in Amazon’s headquarters in Pentagon City, and will open that location in the summer of 2023. This will be the fourth location South Block has brought to market in a 12-month period. In addition, the brand is in the process of its first capital raise. “We're really focused on finding the right capital partner,” Mostafavi says. “Someone who really first and foremost aligns with our culture and our vision wants to grow in a very positive way. We want to grow as fast as we can while still keeping the quality of product and the culture intact.”

CHIP COOKIES (2)

Chip Cookies was born in 2016 out of a rented kitchen in Provo, Utah, by husband and wife cofounder duo Sarah and Sean Wilson. Sar ah’s late-night pregnancy cravings for warm chocolate chip cookies led to “a new category of cookies,” and the brand now touts itself as the original gourmet cookie delivery company with 11 locations in Utah and Idaho and $6 million in system wide annual sales. From the OG Chocolate Chip Cookie and Biscoff Chip to a Sugar Chip cookie with home made cream cheese frosting, Chip’s cookies are all freshly baked and delivered locally as well as shipped nationwide. A focus on sourc ing high-quality ingredients and mantra of providing “quality over quantity” helps differentiate Chip Cookies from competitors in the treat segment. The delivery concept was in a favorable position when the pan demic hit, and managed to open a new store and convert some loca tions to temporary drive-thrus.

SOUTH BLOCK (2)

WhenAmirMostafavi firstgot into the juice and smoothie business in 2006, he started in George Washington University’s campus gym. He had just left a corporate job he was not passionate about and wanted to delve into the world of entrepreneurship. That spot was called Campus Fresh, and jump started his career in the restaurant space. In 2011, Mostafavi opened South Block in Arling ton, Virginia, and he’s been in the juice game ever since. “Our mission is to build healthier commu nities one block at a time,” he says. “Wherever we go, we want to be part of that community— making that community better, making that community healthier, not just in the food that we're serving, but through our involvement with other businesses in the community, with charities, making it a great place to work.” South Block has since grown to 14 loca tions in the DMV area, bringing menu items like cold pressed juices, acai bowls, toast, coffee, and other superfoods to customers.

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FEBRUARY 2023 | QSR | www.qsrmagazine.com