Freddy's Largest Franchisee Buys 43 More Stores
JRI Hospitality, already the largest franchisee of Freddy's Frozen Custard & Steakburgers, has acquired 43 more locations from HCI Hospitality. The deal expands JRI's portfolio to over 130 restaurants across 18 states, signaling significant consolidation in the fast-casual space.
Salina-based JRI Hospitality was founded in 2011 by Jason Ingermanson and has a diverse portfolio that includes Mokas Coffee & Eatery, The Original Grande, and Chompie's. The company is also involved in the local Salina, Kansas community, having purchased and planned upgrades for the Salina Country Club. The seller, HCI Hospitality, was founded in 2002 and is based in Manhattan, Kansas. HCI began its Freddy's franchising journey in July 2010 with a location in Junction City, Kansas, and quickly expanded to operate over 40 units across several states. The founder of HCI, Dave Dreiling, will retain ownership of Booth Creek Wagyu, a business focused on locally raised Wagyu beef. As part of the deal, HCI Hospitality's CEO, Cam Blakely, will transition to JRI, taking on the role of President of Operations for the JRI Freddy's division. This move aims to streamline the integration of the 43 newly acquired restaurants into JRI's existing operations. The Freddy's brand itself has been on a significant growth trajectory. Founded in Wichita, Kansas, in 2002, the chain has expanded to 560 locations as of 2025. The brand's namesake, Freddy Simon, was a World War II veteran, and his values are central to the company's culture. This franchisee consolidation occurs as the broader fast-casual "better burger" market is maturing. While still growing, the segment is seeing increased competition, with consumer focus shifting towards value, high-quality ingredients, and unique dining experiences. The acquisition also comes after a change in ownership for the Freddy's parent company. In September 2025, private equity firm Rhône acquired the brand from Thompson Street Capital Partners, which had owned it since 2021. Under the leadership of CEO Chris Dull, Freddy's surpassed $1 billion in systemwide sales in the past year.
