Huddle House: A growing restaurant franchise that captures opportunities other chains miss

We’re a stable, sustainable restaurant brand with a long track record

 Huddle House franchise is looking for serious multi-unit franchisees to expand our brand presence nationwide.

Huddle House franchise is looking for serious multi-unit franchisees to expand our brand presence nationwide.

Southern hospitality has driven the success of the Huddle House brand for over 50 years. Bacon, eggs, biscuits and burgers are as American as apple pie, and when they’re served up 24/7 with down-home Southern service, it’s easy to understand how our Sandy Springs, Georgia-based breakfast franchise has grown into a 400-unit company.

If you’re looking for an iconic brand that does as well in high-density urban areas as in small towns, and that gives you the opportunity to benefit from high-margin breakfast sales and real estate ownership, here are five reasons you should consider investing in Huddle House.

No. 1: We can help you expand your development opportunities

One of the biggest challenges multi-unit investors face is finding real estate that is suitable for their restaurant concepts. Huddle House excels in areas that other brands overlook. Some brands won’t build in towns with less than 10,000 people, for instance. We thrive in those markets, but we also have flexible footprints that allow us to work as a co-brand in hotels, travel centers and convenience stores, and in retail endcaps in more populated urban areas.

We’re first and foremost a Southern brand, as evidenced by our hospitality, but we’ve found that people everywhere respond well to Huddle House. We are growing in the South as well as in other regions of the country such as the Northeast and Midwest. We have prime markets available for development in these regions, and unlike many other concepts, we offer protected territories.

That has been a welcome advantage to franchisees like Gregg Hansen, who since 2007 has opened 18 locations in Texas, Oklahoma, Kansas, Missouri, Indiana, Pennsylvania and North Dakota.

“I get great support from corporate,” Hansen says. “There is a lot of support there for growth as far as where to potentially put a location and where the best market is. A lot of folks at Huddle House are working to make sure we have systems in place for operating the restaurant from a guest services standpoint, a cost control standpoint, a food safety standpoint and a food quality standpoint.”

No. 2: The restaurant industry is booming

Everybody eats. So it’s easy to understand why the restaurant industry is stable, sustainable and expected to reach $783 billion in 2016. And it’s easy to understand why Huddle House, an iconic brand with more than 50 years in business, isn’t a passing fad. We’ve dedicated our resources to helping franchisees build strong operations with recurring revenue based on our customer value proposition of providing good food at a fair price for a great value. We understand the restaurant industry.

Whether you’re an experienced food franchise entrepreneur or looking to diversify outside your current industry, getting into foodservice right now is a smart move.

Experienced in food franchising, Mike Lokhandwala started working with Huddle House when an endcap space became available in a development project he was involved with. The more he interacted with the corporate office, the more he became convinced that instead of leasing to a Huddle House franchisee, he needed to become the Huddle House franchisee.

“The idea was to actually lease it out to corporate or another franchisee, but I learned more about the brand within those conversations and there were three things that really attracted me to the brand,” he says. “To be specific it was the brand culture that I experienced through corporate and talking to other franchisees, and the good food that is on the menu and the compelling unit economics of the Huddle House brand.”

No. 3: Our menu and culture has staying power

We make money by providing good food at a fair price in a friendly, informal atmosphere. Our brand was founded in 1961 and merged Southern hospitality with a menu of Southern favorites like biscuits and gravy, and twists on old classics, like Stuffed Hashbrowns. The brand is steeped in tradition, but also embraces the ever-changing nature of hospitality. We’re not fussy or dowdy. CEO Michael Abt has executed visionary changes, including a restaurant redesign program that has been utilized by almost half of our locations in the past 4 years.

We have held true to our ideals and updated our brand without venturing into “trend” territory that may or may not be popular 5 years from now. Huddle House is the brand with staying power. Others can serve breakfast, and a few even offer 24/7 menus, but we’re the franchise that has branded Southern hospitality in every region of the country. That consistent guest experience creates the kind of pull demand that keeps bringing customers back.

Lower-cost breakfast foods comprise more than half our sales, which expands potential margins for franchisees.
Lower-cost breakfast foods comprise more than half our sales, which expands potential margins for franchisees.

No. 4: Our popular breakfast menu helps enhance margins

Everybody loves breakfast. It’s the most affordable daypart, and combined with the popularity of breakfast foods and our motto of “Any meal. Any time,” 60% of our sales come from breakfast items. Since breakfast items tend to have higher margins, this means extra profit potential for our franchise partners.

“Of all the brands I’m associated with, Huddle House has the lowest food costs of any of the brands,” says Robert Wiggins Jr., an experienced restaurant operator who owns several other franchise concepts, including Hardee’s, Pizza Inn and Dick’s Wings. And people love having a sit-down breakfast any time of day. Wiggins sees his biggest sales from 2 to 10 p.m.

The breakfast industry is huge, and continues to grow. According to Nation’s Restaurant News, 15% of family eateries are focused on the breakfast daypart in 2016. More and more fast food franchises are clamoring to get in on the action, but many have reached market saturation. Our system is large enough — 400 locations — and has been around long enough to confidently claim sustainability while still possessing the ability to grow nationwide.

Our branded Southern hospitality keeps them coming back: On average, repeat customers visit Huddle House 47 times a year.
Our branded Southern hospitality keeps them coming back: On average, repeat customers visit Huddle House 47 times a year.

No. 5: Multi-unit investors

Many restaurant franchises require franchisees to have prior restaurant experience. We don’t. Our systems and support are buttoned down, proven out by over five decades of testing and refinement. You can hire experienced managers to handle your day-to-day operations. Huddle House also provides business coaches to guide you through our proven systems and help you scale up.

Our financials are sound, and we’re a sustainable brand in a growing segment of the foodservice industry. You can request a copy of our Franchise Report by filling out a no-obligation request form.

To learn more

You can discover more about the Huddle House franchise offering by exploring our research pages. Once you fill out a request form, one of our responsive development representatives will get in touch with you as soon as possible for a quick conversation. We look forward to hearing from you!