Wichita company bucking a trend by keeping its headquarters in Wichita — and expanding
In the almost three years since Thompson Street Capital Partners purchased Freddy’s Frozen Custard & Steakburgers, there’s been talk on and off that the company may be moving the fast food chain’s headquarters to Fort Worth, where its CEO is.
That talk intensified over the last few weeks because, as it turns out, Thompson, a private equity firm based in St. Louis, is expanding in Texas.
However, Wichita still will remain the headquarters and where more than 90% of its corporate workforce is.
“You know, so much of what makes Freddy’s the brand that it is today is the people and the culture,” president and CEO Chris Dull said.
Keeping the company’s headquarters here “was very important to me,” he said.
“We think it’s paramount to the future of the success of the business.”
That’s unlike some other homegrown Wichita companies, such as Pizza Hut, Rent-A-Center and Coleman Co., which eventually moved their headquarters out of Wichita after new owners purchased the businesses.
Not only is Freddy’s not leaving Wichita, it is expanding here with a new “badly needed” National Training & Innovation Center in 23,000 square feet on part of the first and second floors at 3020 N. Cypress Dr.
There will be room to expand in coming years as well.
New Freddy’s landlord Cory Harkleroad, CEO of HJH Investments, said in a statement that as a Wichita-headquartered company itself, it’s great to see Freddy’s still here.
He said the firm is “thrilled to be a part of the growth of Freddy’s and look forward to seeing the continued positive impact both of our companies can make to our great city.”
Patrick Ahern of NAI Martens represented HJH in the deal.
The innovation facility is something the company started discussing not too long after its March 2021 purchase.
“The support center in Wichita is really the lifeblood of our corporate infrastructure,” Dull said.
The building will have room for research and development and, significantly, a training center for new franchisees that is separate from Freddy’s restaurants, where previous training has taken place.
That means now, restaurant operations won’t have to be interrupted while franchisees learn the business.
“It’s really been a bit of a deficiency,” Dull said of training in restaurants. To not be a detriment to “our guests is a great improvement for us.”
With the research and development component as well, Dull said the ability to innovate new products “is also invaluable for us.”
This means Freddy’s will be leaving its longtime offices at 260 N. Rock Road over the next year or so as the new space becomes ready in phases.
The company is opening its 500th restaurant at the end of September. It’s opening almost 60 new restaurants this year and 75 next year.
“We do all of that training in Wichita,” Dull said.
As the company readies the new innovation center, it’s also slightly expanding its Fort Worth office, where it’s been for about two and a half years, from 2,500 square feet to about 4,000 square feet.
Dull divides his time between Fort Worth and Wichita.
“Today we have almost 80 restaurants open in the state of Texas, which represents the largest state for Freddy’s,” he said.
Dull said it’s where the most new Freddy’s restaurants are coming, too.
“So having a little bit of an expanded officing opportunity in Texas makes a lot of sense.”
Other senior corporate staff are in Atlanta and St. Louis.
Freddy’s is in 38 states with a couple more coming on board and, as of next year, will be in Canada.
“Then we’ll be a national and an international brand,” Dull said.
Not that that’s a big goal, he said.
“For us, international is not a huge strategic initiative. Our development focus is in the United State primarily.”
Dull said the Northeast is a huge area of opportunity for the brand.
“We think it’s a great market for Freddy’s, and we’re not there yet.”
