In this Q&A with Freddy’s Frozen Custard & Steakburgers’ Co-Founder and COO, Scott Redler explains the company’s vision and long-term plans to grow the brand — and encourages other operators to establish founding visions to lead the way.
What does the acquisition by Thompson Street Capital Partners mean for Freddy’s?
The acquisition marks an exciting period of transition for Freddy’s. While we’ve always heavily invested in an unparalleled corporate support system to ensure our operators have the resources they need, our new partnership with TSCP will elevate those capabilities and enable us to take our franchisee support to another level. When we met the exceptional team at TSCP, it was apparent that our core values and company culture aligned, making them the perfect fit for our Freddy’s family of Team Members, franchisees and vendor partners.
Following the recent acquisition, we recently announced that franchise and restaurant industry veteran Chris Dull has joined Freddy’s as our new Chief Executive Officer. Dull will leverage his extensive industry experience to increase Freddy’s focus on marketing and technology deployment while continuing to evolve the brand’s operational best practices, as well as accelerate franchise development.
What does your current development pipeline look like? What are the key areas you see as driving growth in the next 3 years?
In 2020 we made major strides in our franchise development, including celebrating our 400th restaurant opening. Freddy’s has experienced outstanding momentum over the past several years, most notably our openings have grown by double digit percentages annually. We attribute our aggressive growth to the dozens of existing franchisees that continue to reinvest and grow with our brand.
We recently welcomed six new development groups that committed to over 60 development options. Additionally, we signed 11 new development agreements with existing Freddy’s franchisees who committed to additional territories and over 70 new restaurant options in key areas including Southern California, Central Florida, Texas, and Ohio. The commitment of our franchisees has resulted in an average of 30 to 60 new restaurant openings each year since 2016, and a healthy pipeline of more than 500 units committed to be developed in the coming years.
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