Who Owns Freddy's Frozen Custard & Steakburgers?

• Parent Company: Freddy's Frozen Custard & Steakburgers, Inc.
• Ownership Type: Wholly owned
• Company Type: Publicly Traded

• Founded: 2002
• Founders: Fred Schimpf

• Founded: 2002
• Headquarters: Wichita, Kansas, USA
• Company Type: Publicly Traded
• Revenue: not publicly disclosed
• Employees: Approximately 5,000 (corporate and company-owned locations)

Visit Freddy's Frozen Custard & Steakburgers, Inc. website

• Headquarters: Wichita, Kansas, USA
• Manufacturing / Operations: United States

Freddy's Frozen Custard & Steakburgers operates under a comprehensive sustainability and ethics framework focused on responsible sourcing, food quality, community engagement, and environmental stewardship appropriate for the fast-casual restaurant sector. As a growing franchise chain with 560 locations, Freddy's has implemented sustainability initiatives that balance business growth with environmental responsibility and ethical business practices.

Responsible Sourcing and Food Quality: Freddy's emphasizes high-quality ingredients and responsible sourcing practices across its supply chain. The company sources Vienna Beef hot dogs from established suppliers, uses fresh beef for steakburgers, and maintains consistent standards for frozen custard ingredients. These practices ensure product quality while supporting suppliers who meet food safety and ethical standards.

Local Community Engagement: Freddy's maintains strong community connections through local franchise ownership and community involvement initiatives. The company supports local communities through charitable giving, school partnerships, and community event sponsorships. Each restaurant operates as part of its local community, with franchise owners often being local residents who understand community needs and preferences.

Waste Reduction and Environmental Practices: Freddy's restaurants implement waste reduction programs including food waste minimization, recycling initiatives, and sustainable packaging options where feasible. The company's focus on cooked-to-order food helps reduce food waste compared to traditional fast-food models with pre-prepared items that may go unsold.

Energy Efficiency: Freddy's locations incorporate energy-efficient equipment and practices to reduce environmental impact and operational costs. The company continuously evaluates new technologies and equipment that can improve energy efficiency while maintaining food quality and service speed.

Employee Welfare and Development: Freddy's maintains ethical employment practices, providing competitive wages, benefits, and development opportunities for restaurant staff. The company invests in training programs that focus on food safety, customer service, and operational excellence, creating a supportive work environment that reflects the brand's commitment to quality and hospitality.

Supply Chain Ethics: Freddy's works with suppliers who meet ethical standards for labor practices, environmental responsibility, and product quality. The company conducts supplier assessments to ensure compliance with its sustainability and ethics requirements, particularly for key ingredients like beef, dairy products, and produce.

Transparency and Accountability: Freddy's maintains transparency in its operations, ingredient sourcing, and business practices. The company communicates openly with customers about menu items, ingredient quality, and business practices, building trust through honest dialogue about its products and operations.

Accessibility and Inclusivity: Freddy's is committed to creating welcoming environments for all customers, regardless of background, age, or group composition. The company's family-friendly atmosphere and community-focused approach reflect its commitment to serving diverse customer segments while maintaining its distinctive brand character.

Freddy's Frozen Custard & Steakburgers has received recognition throughout its growth trajectory for business performance, franchise success, menu innovation, and market leadership in the fast-casual restaurant segment. The brand's consistent expansion and customer loyalty have earned acknowledgment from industry publications and business organizations.

Franchise Growth Recognition: Freddy's has been recognized in franchise industry publications for its rapid and sustained growth. The company opened a record 62 new locations in 2023, bringing its total to over 560 locations by 2025. This growth trajectory has been acknowledged as exceptional in the competitive fast-casual restaurant market.

Fast-Casual Industry Leadership: Freddy's has been cited as a leader in the fast-casual restaurant segment, particularly for its successful combination of premium ingredients with fast service. The brand's ability to maintain quality while scaling operations has been recognized as a significant achievement in restaurant industry analysis.

Menu Innovation Recognition: Freddy's consistent menu focused on steakburgers, Vienna Beef hot dogs, and frozen custard has been recognized for successful brand differentiation. The company's commitment to maintaining menu consistency while expanding operations has been acknowledged as an effective strategy for building brand loyalty.

Business Performance Achievement: Freddy's has received recognition for its strong financial performance and successful ownership transitions. The company's acquisition by Thompson Street Capital Partners in 2021 and subsequent sale to Rhône Group in 2025 for approximately $700 million demonstrate the brand's significant business value and market position.

Customer Satisfaction Recognition: Freddy's has achieved strong customer loyalty and satisfaction ratings, particularly in markets where the brand has established long-term presence. The company's focus on quality ingredients and consistent service has resulted in high customer retention and repeat business.

Expansion Strategy Success: Freddy's planned expansion into Canada and continued domestic growth have been recognized as examples of successful international expansion planning. The company's methodical approach to market entry and franchise partner selection has been acknowledged as best practice in franchise development.

Veteran and Family Values Recognition: The company's connection to military service through founder Freddy Simon's World War II service and Purple Heart and Bronze Star awards has been recognized as part of the brand's authentic American heritage. This military connection and family business foundation contribute to the brand's distinctive identity and values.

Operational Excellence: Freddy's franchise system and operational standards have been recognized for effectiveness in maintaining quality across a growing network of locations. The company's ability to scale operations while preserving brand standards has been acknowledged as a significant achievement in franchise management.

Freddy's Frozen Custard & Steakburgers has maintained a relatively clean operational record throughout its history, with few major controversies or recalls. The company's focus on quality ingredients, consistent operations, and controlled growth has helped avoid many of the issues that affect larger restaurant chains. However, the brand has faced some challenges typical of the restaurant industry.

Food Safety Incidents: Like all restaurant chains, Freddy's has occasionally faced minor food safety issues at individual locations, though no major, brand-wide recalls have been reported. The company's emphasis on cooked-to-order food and fresh ingredients helps reduce food safety risks compared to pre-prepared food models. Individual location incidents are typically addressed quickly through standard restaurant health and safety protocols.

Franchise Disputes: Freddy's has experienced some franchise-related disputes, which are common in the franchise restaurant industry. These conflicts typically involve operational standards, territorial rights, or business performance expectations. The company has generally resolved these disputes through standard franchise agreement mechanisms and legal processes.

Competition and Market Challenges: Freddy's faces intense competition in the fast-casual restaurant segment from established chains like Shake Shack, Culver's, and Five Guys, as well as newer entrants in the premium burger and frozen dessert categories. This competitive pressure creates ongoing challenges for market share and customer acquisition.

Labor and Employment Issues: Like many restaurant chains, Freddy's has faced labor-related challenges including staffing shortages, wage pressures, and employee retention issues. The company has had to adapt to changing labor market conditions and increasing minimum wage requirements in various jurisdictions.

Supply Chain Disruptions: Freddy's has experienced supply chain challenges, particularly during the COVID-19 pandemic and subsequent supply chain disruptions. These issues have affected ingredient availability and pricing, requiring the company to adapt its sourcing strategies and menu offerings when necessary.

Ownership Transition Concerns: The multiple ownership changes from founding family control to Thompson Street Capital Partners in 2021, and then to Rhône Group in 2025, have created some uncertainty among franchisees and employees about the company's future direction and commitment to brand values.

Economic Sensitivity: As a discretionary dining option, Freddy's is vulnerable to economic downturns and changes in consumer spending patterns. Economic recessions and inflationary pressures can impact customer frequency and average check sizes, affecting overall business performance.

Expansion Challenges: Freddy's rapid expansion from a single location to 560+ locations in 23 years has created operational challenges including maintaining quality standards, finding suitable franchise partners, and adapting to diverse local market conditions across different regions.