Operations

Freddy's posts solid 2020 earnings

Provided

January 25, 2021

Despite operating amid the pandemic, 2020 was a good year for Freddy's Frozen Custard & Steakburgers. AUV growth increased 6.5%, and year-over-year sales came in at a 21.2% increase at the Wichita, Kansas-based concept. It also opened 30 restaurants, including its milestone 400th location.

"Our ability to continue growing and thriving despite the toughest of circumstances is a testament to the viability of the Freddy's franchise model," President and CEO Randy Simon said in a company press release. "We are thrilled to be heading into 2021 with a strong growth pipeline that positions us for further success."

The brand also saw a surge in franchise development throughout the year, including signing six development groups that committed to over 60 development options as well as signing 11 development agreements with existing Freddy's franchisees, who committed to additional territory and over 70 new restaurant options.

Throughout 2020, Freddy's investments in innovation and technology helped it adapt to the new demands of a post-COVID reality, Simon said. The brand expedited the rollout of a mobile ordering platform, which better-equipped franchisees and workers to facilitate curbside delivery and contactless ordering. Freddy's also saw widespread adoption and use of the app and loyalty program where available, as it played a vital role in facilitating safe and contactless ordering and payment. Curbside delivery was made available in select markets and is continuing to roll out at more restaurants across the system.

"Giving our team members and guests a safe, efficient and convenient experience was more important in 2020 than ever, and we embraced technology as a way to maintain the connection we've built with our loyal guests and refine a process that enabled us to continue serving the Freddy's community," Scott Redler, co-founder and COO, said in the release.

With a dozen restaurants slated to open in the first quarter of the year, including locations in Tennessee, Georgia and Texas, Freddy's plans to open more than 50 restaurants nationwide throughout the end of 2021.

Co-founded in 2002 by Scott Redler and Bill, Randy and Freddy Simon, Freddy's opened its first location in Wichita, Kansas.