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2015 Second 100: Why Freddy's is the No. 4 fastest-growing chain

2015 Second 100: Why Freddy's is the No. 4 fastest-growing chain

This is part of Nation’s Restaurant News’ annual Second 100 report, a proprietary census ranking restaurant brands Nos. 101-200 by U.S. systemwide sales and other data. This special report focuses on a smaller, more growth-oriented universe than the Top 100 report.

Freddy’s Frozen Custard & Steakburgers enjoyed 38.4 percent growth in sales as it opened 31 units, giving the chain a total of 135 restaurants — a bump of 31 percent.

CEO Bill Simon said the company is on target to have a total of 185 restaurants by the end of this year.

He opened the first Freddy’s in Wichita, Kan., in 2002 with a straightforward concept: high-quality hamburgers shaped in thin, 1/6-pound patties so they cook quickly. The most popular item is a double burger made with two patties — sold with the rich frozen dessert that is a favorite in the Midwest.

There’s also a vegetarian black bean burger option, and Vienna Beef hot dogs, and grilled chicken and fried chicken tenders, “but the menu overall is quite limited,” Simon said. “It makes it attractive to franchisees, we’ve learned.”

All but 14 of Freddy’s locations are franchised.

Before launching Freddy’s, named after his father, a veteran of the Second World War, Simon operated Pizza Hut and Rent-A-Center franchises and started the Timberline Steakhouse Grill, giving him — and business partner and brother Randy Simon — both operational and high-end service experience that have helped them promote a service culture throughout their system.

Keys to growth

Simple menu: Freddy’s straightforward operations make the concept approachable for franchisees and relatively easy to execute.

Understanding franchisees: As former franchisees themselves, the Simon brothers work to maintain good relationships with their own franchise partners. “We’ve tried not to have fees that are exorbitant or marketing that isn’t well spent,” CEO Bill Simon said.

Strong training: Each Freddy’s location has an in-store training station where trainees can watch videos and look at reference material. Franchisees also are required to have at least two managers who have worked in training stores for 31 work days, so they can learn not only operations but also the chain’s “service-with-a-smile” ethic.

A good back-story: Freddy’s is named after founders Bill and Randy Simon’s father, a veteran of the Second World War. Black-and-white photographs of him decorate the restaurant and the company’s charitable contributions focus on veterans’ organizations.

Correction: July 12, 2016 Freddy’s Frozen Custard & Steakburgers serve patties that are 1/6 of a pound, not 1/6 of an ounce as originally written in this story.

Contact Bret Thorn: [email protected]
Follow him on Twitter: @foodwriterdiary

Get the 2015 Top 100 report

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