The Success Story of Freddy’s Frozen Custard & Steakburgers: International Expansion and Franchise Growth
Explore how Freddy’s Frozen Custard & Steakburgers is expanding internationally and experiencing rapid franchise growth.
Photo by Natasha Vasiljeva on Unsplash
Photo by Natasha Vasiljeva on Unsplash
International Expansion in Winnipeg, Canada
Freddy’s Frozen Custard & Steakburgers is set to make a significant mark in the international arena with the opening of its first location in Winnipeg, Canada. This move marks a milestone for the fast-growing burger brand as it expands beyond U.S. borders. Through a strategic master franchise agreement with North 49 Frozen Custard and Steakburgers, Freddy’s is paving the way for its Canadian footprint to flourish.
Rapid Growth Post-Acquisition
Since its acquisition by Thompson Street Capital in 2021, Freddy’s has been on a rapid growth trajectory. With ambitious targets in mind, the brand aimed for a total unit count of about 1,000 by 2022. Starting the year with 421 total units, the chain saw significant growth to reach 550 units at the beginning of the current year. Notably, in 2024 alone, Freddy’s added 33 new units to its portfolio, with plans to open an additional 70 units in the upcoming fiscal year.
Photo by Natasha Vasiljeva on Unsplash
Outperforming Competitors
Freddy’s success in the franchise business is evident through its impressive average unit volume (AUV) of almost $1.9 million. This robust performance sets it apart from national chains like Burger King, which reported a franchised AUV of about $1.7 million in 2024 according to its Franchise Disclosure Document. Freddy’s ability to outshine competitors highlights its strong brand presence and operational excellence.
Strategic Training and Support Center
In August 2024, Freddy’s further solidified its commitment to growth by establishing a new training and support center in Kansas. This dedicated facility aims to equip managers and franchisees with the necessary tools and knowledge to support the brand's expansion initiatives. The center signifies Freddy’s proactive approach to nurturing talent within its network and ensuring operational excellence across all franchise locations.
Capitalizing on Fast Casual Success
The decision to venture into the Canadian market aligns with Freddy’s overarching strategy to capitalize on the strength of the U.S. fast casual dining sector. In recent years, fast casual brands have consistently outperformed quick-service restaurants (QSR) and casual dining establishments. By expanding internationally and focusing on franchise growth, Freddy’s is positioning itself as a key player in the thriving fast casual segment.