Huddle House breakfast franchise allows for lower initial investment by allowing inline, end-cap retail locations.
When you join a franchise, it’s important to know exactly what you’re getting in exchange for those royalty payments. After all, entrepreneurs join a franchise system because it gives them the support they need to build a business.
The Huddle House breakfast franchise offers extensive support to our franchise owners, helping them get started, grow and grab market share. One way Huddle House helps new franchisees is by allowing them to make a lower initial investment than many restaurant franchises.
“Huddle House has significantly lowered its initial investment,” says CEO Michael Abt. “Traditionally, Huddle Houses were freestanding on land purchased by the franchise owner. Today, new franchisees can opt for far less expensive end-cap and inline retail locations. These new locations perform at similar levels to freestanding units, allowing the owner to get a much faster return on an initial investment.”
The 24-hour, Southern-inspired family restaurant franchise is known for serving affordable, unapologetically homestyle food in a warm, friendly environment. Huddle House breakfast franchises are often beloved gathering places in their communities, places where residents and travelers can get breakfast, lunch and dinner any time of the day or night. With 380 units in 21 states, the 50-year old franchise is growing well beyond its original core market in the Southeast and into markets in the West, Midwest and Northeast.
One of the secrets to the success of our breakfast franchise is our ability to create win-win partnerships for our franchisees and their business partners. For example, in 2013 we entered into a joint venture with CEFCO Convenience Stores, a 250-unit chain in Texas. Such strategic relationships make a lot of sense for all parties involved, and they build trust across brands. They expand the Huddle House franchise to non-traditional locations. A Huddle House that operates in conjunction with a travel center or convenience store typically involves a much lower initial investment than traditional freestanding restaurants.
Huddle House also helps its franchisees with a $2.5 million incentive program that offers $25,000 to owners who remodel existing restaurants. In 2013, our new Huddle House Evolutions store design caught fire and delivered sales growth to participating franchisees. Our stunning new design has an open kitchen that invites more interaction with customers. It also features a signature tower entrance and an interior with contemporary colors and plush seating. The new design is propelling the brand forward in a big way, and we anticipate more than 90% of our units will feature the design by 2017.
“From my experience, Huddle House seems to have the highest level of contact with their franchisees,” Mark Little, a franchisee in Tupelo, Mississippi, says. “They have franchise area directors who work with 50-60 stores in a region. They are the prime point of contact. We get to see them a lot. They might not always tell you what you want to hear, but the store-level contact can be of great help. I think Michael Abt, the new CEO, has made a lot of good moves. It’s almost an entirely new team at the top, and I view that as a plus. Huddle House is really headed in a very positive direction.”