Media Contact: Shawn Steward
Associated (for Freddy’s)
316-683-4691 ext. 240
ssteward@unexpectedagency.com
FREDDY’S FROZEN CUSTARD ANNOUNCES RECORD EXPANSION IN 2007
Fast-casual frozen custard and steakburger chain finds strong niche with nearly 20 locations open by year-end 2007 and rights sold for nearly 120 locations
WICHITA, Kan. – Sept. 12, 2007 – Freddy’s Frozen Custard, a privately-held franchise concept featuring steakburgers and frozen custard, has demonstrated strong, steady growth since opening its first store five years ago. Freddy’s now has 14 locations in four states, including five company-owned locations.
But just as Freddy’s food has become a favorite for customers, the company is drawing plenty of attention and is popular among franchisees. Current franchisees hold the rights to nearly 120 new locations across Arizona, Kansas, Nevada, Oklahoma and Texas. Five new Freddy’s locations are scheduled to open during the remainder of this year, including Oklahoma City and Topeka, Kan., as well as three stores in the San Antonio area.
Freddy’s company stores that have been open at least 18 months have all enjoyed record sales, with cumulative growth of over 13 percent for the first half of 2007 compared with the same period in the previous year. In addition to the impressive comp sales growth on existing units, Freddy's has again achieved combined record sales and net earnings for the first two fiscal quarters of 2007.
“2007 will prove to be our best year of growth yet, with the opening and scheduled opening of nine new stores,” said Freddy’s president, Bill Simon. “This would represent a 90 percent unit growth over 2006, and our inquiries into and sales of new franchises are extremely vibrant.”
Freddy’s regularly enhances its regular menu with limited-time special sandwich and dessert items. This summer, spicy chicken and Italian beef sandwiches have been available at different times. Frozen custard concrete special flavors have included Banana Cream Pie and Chocolate Peanut Butter Cookie Dough.
The secret to Freddy’s franchising success has been not a single silver bullet but rather several elements. It is a model built on customer-focused success, top-notch support from the corporate office, and a management team with many years of proven experience with franchises including Pizza Hut, Rent-A-Center, Panera Bread, Timberline Steakhouse & Grill and Montana Mike’s Steakhouse.
“The centerpiece of our philosophy is customer hospitality,” says Mark Scholler, Vice President of Franchising. “We want our guests to have an experience that exceeds expectations, not just eating a burger and some ice cream. They can find that anywhere. We recognize that there are some synergies at play that defy explanation, yet great food with great custard treats excites the kid, as well as the consumer in all of us.”
Bill Simon agrees. “Our steakburgers create that secret ‘hole-in-the-wall, no one knows about it’ hamburger joint quality that is craved after the first experience,” he says. “There’s really nothing else like our frozen custard, and its availability in the marketplace is still far from saturated.”
This spirit pervades the company from top to bottom, as employees strive to create customer “experience.” Many of Freddy’s managers are owners in not only their stores, but others as well.
“They enjoy working for Freddy’s and rightfully see themselves as a piece of the mechanism that creates the value of that ownership,” says Bill Simon.
Ron Oberg, part of the ownership group on Freddy’s first franchise locations in Kansas and who, along with his brother, James, owns the franchise territory that includes the San Antonio metro area, says that potential employees see the difference in Freddy’s system-wide hospitality focus and actively involved store management when compared with other quick service restaurant companies.
“Freddy’s is just easier to manage than other concepts,” Oberg says. “I’m not having a tough time hiring and retaining employees, which is certainly not the norm in this industry.” Oberg also explains that the Freddy’s corporate structure allows him to openly provide feedback and suggestions for improving processes, operations and the overall customer experience.
“We implemented two preparation lines in the kitchen to better serve both the dining room and drive-through at our first Kansas location, and changed some signage design elements when we built our first Texas location,” Oberg says. “Both of those changes were welcomed by management at the corporate office, and later were implemented by other stores. The Freddy’s corporate leadership has been on both sides of the fence, as franchisees and now as franchisors. I liked hearing that when I was negotiating to buy a franchise. It has been like night and day compared to the inflexibility in working with larger franchise concepts I’ve experienced in the food service and hospitality industries.”
Freddy’s Frozen Custard further separates itself from competitors with a décor and marketing focus on the 1940s genre, a time that makes people harken back to the good old days of simple, hometown pleasures; patriotism for America; and joining family and friends to escape the worries of the world. The company’s namesake, Freddy Simon, 82, is an energetic World War II veteran who enthusiastically attends store openings and is known to regularly appear at locations to greet customers, wearing his signature “Hi, I am Freddy” black polo shirt. The spirit of Freddy throughout the business is further evident in the nostalgic pictures of him that adorn the walls of each restaurant, complete with captions that communicate his upbringing, military experience and no-nonsense philosophies on life.
“It has been an incredible ride with Freddy’s so far, and we’re in it for the long haul,” Oberg says. We’re looking at adding other markets beyond the ones we have in Kansas and Texas. Obviously, I’m sold on the concept.”
Owned by Scott Redler and Randy, Freddy and Bill Simon, Freddy’s opened its first location in 2002 in Wichita, offering its now-loyal customers cooked-to-order steakburgers, Chicago dogs, and other savory items along with its signature desserts made from fresh frozen custard. Seven months later, they opened a second Wichita location and added another in July 2007. In addition to the three locations in Wichita, Freddy’s also has company-owned stores in El Dorado, Kan. and Tulsa, Okla., and franchise locations in Hutchinson, Kan.; Phoenix; San Antonio, New Braunfels and Selma in Texas; and Oklahoma City, Enid, Edmond and Moore in Oklahoma.
For more information about Freddy’s, visit us online at www.freddysfrozencustard.com.
###