LAKE ST LOUIS, Mo. — Freddy’s Frozen Custard & Steakburgers on Monday opened its newest location at 1021 Southern Ridge Lane in Lake St. Louis, as the fast-casual restaurant chain continues its rapid, nationwide expansion.
The Wichita, Kansas-based company is on track to open almost 40 new dining locations in 2022, Chief Development Officer Andrew Thengvall said, bringing its total number of restaurants to around 450.
It's eyeing 50 new locations next year, including as many as 5 in St. Louis in the next few years. The new Lake St. Louis location brings the total number of the Freddy’s restaurants in the St. Louis region to 14. A 15th location will open in Belleville in either February or March.
“St. Louis is a great market,” Thengvall said. “We’ve been here for over 10 years, and the community has been extremely supportive of the Freddy’s restaurants, so we continue to expand. It’s a place that we’re very interested in developing more Freddy’s and growing.”
Freddy’s is known for its cooked-to-order steakburgers, all-beef hot dogs and shoestring fries, as well as its frozen custard treats.
Founded in 2002, the company’s rapid expansion is largely due to its multi-unit franchise deals, Thengvall said. However, there are about 30 corporate-owned restaurants located in the St. Louis, Kansas City and Wichita, Kansas, regions.
The company looks for franchisees who are existing restaurant owners or have experience as operators in the restaurant industry, he said.
While franchise deals can vary, Thengvall said it’s generally common for franchisees to sign a contract to open four restaurants, with terms of the deal including a $30,000 licensing fee for each location and a royalty fee of 4.5%.
On average, buildout of a new restaurant ranges from $800,000 to $2 million, depending on factors such as location, size and timing of the build, he said.
Last year, stores across the country that had been open more than 18 months averaged full-year sales of about $1.9 million, Thengvall said.
While sizes can vary, most Freddy’s locations are between 2,500 and 3,000 square feet, and employee around 50 people, he said.
Lake St. Louis’ new, freestanding Freddy’s location is just over 3,000 square feet and will seat 84 guests, with additional seating on the patio and drive-thru service able to accommodate more guests, the company said.
Read the whole story on the St. Louis Business Journal website.
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