This is part of the Nation’s Restaurant News annual Second 100 report, a proprietary ranking of restaurant brands Nos. 101-200 by U.S. systemwide sales and other data. This special report is a companion to the Top 100 report.
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Unit growth boosted a 33-percent increase in domestic systemwide sales recorded by Freddy’s Frozen Custard & Steakburgers in the Latest Year. The Limited-Service/Burger chain ended the Latest Year with 177 domestic locations, rising more than 31 percent over the Preceding Year.
Freddy’s made its debut in Wichita, Kan., in 2002, serving high-quality burgers with multiple patties and, for dessert, rich frozen custard in the form of cones, sundaes and concretes.
The mostly franchised chain can be found coast-to-coast. Freddy’s plans to add 54 locations in 2016, which will bring its overall unit count to 231 restaurants.
Scott Redler, Freddy’s co-founder and chief operating officer, said growth has been organic, and the company hasn’t had to promote the brand or sell territories to franchise operators.
“Franchisees will go into a Freddy’s and have a steakburger and custard, and they fall in love with the brand and say, ‘Hey, I want to open one of these,’” he said.
Many also return and pick up additional territories once they have success with the brand, Redler said.
More recently, Freddy’s has benefitted from new software that has enhanced real estate site selection, he said.
“We know where our guests live, work and trade,” Redler said. “Getting that additional information has really helped us get better in the selection of a great Freddy’s site.”
Keys to Growth:
Value: Freddy’s average check is in the $8 range, which compares well with direct competitors, which tend to fall in the $12 to $14 range.
Targeting real estate: The chain has fine-tuned its real estate model to provide accurate information to franchisees about top-tier sites.
Working with landlords: Freddy’s offers sellers and landlords data that demonstrate how a restaurant can provide reciprocal benefits to a development, Redler said, adding, “Landlords love the family-friendly aspect of the brand.”
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