Midwest burger chain targets California, taking on In-N-Out
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- Midwest-based Freddy’s Frozen Custard & Steakburgers is gearing up to challenge In-N-Out, planning a major Northern California push after years of having only a handful of California locations.
- The Wichita, Kan.-founded chain, known for burgers, fries and frozen custard, aims to open 60 new outlets this year, experimenting with flexible restaurant formats and aggressively recruiting new franchisees.
- Freddy’s expansion comes as California’s fast-food market tightens, with cost-conscious diners and rising expenses squeezing legacy brands such as Carl’s Jr., whose major franchisee recently filed for bankruptcy.
Watch out, In-N-Out; another chain is targeting California consumers with its big burgers.
Although Freddy’s Frozen Custard & Steakburgers features California on its menu with its “California Style Double” burger, only a handful of its outlets are in California.
Last week, it announced plans to change that by making Northern California a focus of its expansion, adding 60 new outlets to its network this year.
The chain was founded in Wichita, Kan., in 2002 and is known for its burgers, fries, cheese curds and sundaes.
Its first California location opened in 2011 in Victorville. Six more stores have since opened, including in Norco, Glendora and San Marcos.
Freddy’s has more than 580 stores around the country.
The company said in a news release that it would focus on developing different restaurant formats in addition to stand-alone sites to adapt to different real estate spaces.
Freddy’s chief development officer, Andrew Thengvall, said the company was looking for new franchisees in the U.S. and abroad.
“A strong franchise system is built on operators who see long-term opportunity within the brand,” he said. “As Freddy’s continues to grow, we remain focused on supporting our franchisees through new restaurant prototypes, greater real estate flexibility, and development strategies that help position the brand for sustainable growth.”
In California and elsewhere, Freddy’s is trying to expand in a market where many chains are struggling to grow.
A growing group of consumers is looking for ways to save money, worried about rising prices and how artificial intelligence could affect their jobs.
To attract the cautious consumers, analysts say, restaurants and retailers need to have lower prices or demonstrate a distinct brand identity that people will pay extra for.
Some brands, including Carl’s Jr., which began in California, have struggled in the state. One of Carl’s Jr.’s largest franchisees in the state has filed for bankruptcy in the wake of rising costs and competition.
