Freddy's Top Franchisee Buys 43 More Stores
JRI Hospitality, the largest franchisee of Freddy's Frozen Custard & Steakburgers, has acquired 43 more locations by purchasing HCI Hospitality. The deal expands the restaurant group's holdings to over 130 Freddy's restaurants across 18 states.
This acquisition solidifies JRI Hospitality's position as a dominant force within the Freddy's system, growing its portfolio by nearly 50%. The deal also brings new leadership to JRI, with HCI's former CEO, Cam Blakely, taking the helm as President of JRI's Freddy's operations. HCI's founder, Dave Dreiling, will retain his other business, Booth Creek Wagyu. The two Kansas-based franchisees share a long history with the Freddy's brand. HCI Hospitality opened its first Freddy's in Junction City, Kansas, in 2010. JRI Hospitality, founded in 2011 by Jason Ingermanson, has also grown rapidly, previously acquiring Freddy's locations in markets like Nevada and Pennsylvania. For Freddy's Frozen Custard & Steakburgers, this franchisee-to-franchisee sale represents a consolidation of strength. The brand has seen significant growth, with its number of restaurants increasing by over 45 percent since 2019. The company's systemwide sales are approaching $1 billion annually, with the average restaurant earning close to $2 million in revenue. This growth trajectory attracted new ownership for the parent company in September 2025, when private equity firm Rhône acquired Freddy's. The fast-casual brand was founded in Wichita, Kansas, in 2002 by the Simon brothers and Scott Redler, and is named after their father, World War II veteran Freddy Simon. The fast-casual restaurant sector has been a bright spot in the industry, outperforming both full-service and traditional fast-food establishments. In 2024, fast-casual chains in the Top 500 experienced a 9% growth in sales, significantly higher than the 2.3% growth seen in the quick-service sector. Projections show continued strong growth for the fast-casual market, with one report estimating a 7.4% compound annual growth rate from 2024 to 2030, expanding the market value from approximately $144.8 billion to $230 billion. Another analysis predicts the market could grow by over $300 billion between 2024 and 2028. This growth is largely driven by consumer demand for higher-quality ingredients and customizable menu options.
