Iconic breakfast and family food franchise continues expansion in Texas, South Carolina and Tennessee
The Huddle House franchise, known for serving “any meal, any time,” signed three franchise agreements for new locations in Porter, Texas, Cowpens, South Carolina, and Ardmore, Tennessee.
“We’re continuing to pick up the pace of our expansion, says CEO, Michael Abt. “We significantly lowered our initial investment and are increasing our sales and top end. We’re working on improving our franchise margins, making us one of the most attractive food franchises in the market today.”
Our 24-hour, Southern-inspired family restaurant franchise is known for serving affordable, unapologetically homestyle food in a warm, friendly environment. Huddle House diner franchise locations 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 over 400 restaurants open and under development, our 50-year old franchise is growing well beyond its original core market in the Southeast and into markets in the West, Midwest and Northeast.
Huddle House signed 21 new franchises and two new multi-unit deals for a total of more than 30 new restaurants throughout the first 10 months of 2014. The signings included our first locations in Nebraska, New Jersey and New York. New construction starts are 100 percent ahead of last year.
We also opened our first restaurant in Dew, Texas, bringing our total number of operating restaurants to 378. As we celebrate our 50th anniversary, we’re on pace to open as many as 20 restaurants during fiscal year ending April 30.
“We’re expanding outside of our Southern roots, and we’re finding that our nostalgic diner, packaged with our Southern hospitality, is really attractive in markets outside the South,” says Jonathan Benjamin, vice president of franchise development. “People want our affordable comfort food, along with our Southern hospitality.”
Huddle House has significantly lowered its initial investment for franchisees. Traditionally Huddle Houses were freestanding units on land purchased by the franchise owner, and some could require an investment of $1 million or more. Today, new franchisees are opting for far less expensive end-cap and inline retail locations. These new locations perform at similar levels to freestanding units, and yet the average investment needed to open the end-cap store and produce revenue is typically less than half of that required for freestanding stores. Sample revenues from freestanding units and end-cap restaurants show that the difference was only about $10,000 annually in average revenue.
Breakfast food is increasing in popularity, and there are few competitors in the restaurant franchise market. Huddle House serves breakfast items 24/7, and breakfast food makes up more than 60% of its revenue. This is important because breakfast foods typically have a higher profit margin than lunch and dinner menus. Packaged Stats, a market research firm, reported that restaurant sales had increased by five percent from 2012 to 2013 at $47 billion. That was preceded by an eight-percent growth during 2007-2012.
If you want to learn more about how our 50-year-old legacy brand is growing, please explore our research pages and exciting developments on our blog. You can also fill out this form to download our free franchising report. We’d love to hear from you!