ICONIC SOUTHERN DINER FRANCHISE IS GROWING AND GAINING MARKET SHARE
Single and multi-unit owners capitalize on growth and long-term sustainability of our iconic diner franchise
Huddle House is a Southern diner franchise known for our ‘round-the-clock breakfast, Southern hospitality and being the best place to gather in any hometown. After more than 50 years in business, we’ve earned our status as an iconic brand. Our crowd-pleasing menu of favorites is available any time guests want and business thrives in small towns, suburbs and exurbs. The breakfast portion of the menu accounts for more than half of sales, which is awesome because breakfast items generally have higher margins than food typically ordered in other dayparts.
With our efficient and affordable building design, we out-maneuver other food concepts by operating in small towns and rural population centers. Entrepreneurs who open a Huddle House can do big things for a small town by offering a much needed community gathering place and local hangout. But our timeless and traditional model also translates just as easily in the suburbs and exurbs, providing a wealth-building opportunity for multi-unit operators. We’re seeing lots of growth in new areas now for that very reason.
Our collective buying power, centralized supply and focus on lower-cost, higher-margin breakfast foods provide a great earnings opportunity for franchise owners. Our smaller market strategy, where land is still plentiful and affordable, allows franchisees to build significant equity through purchasing both land and building, paid for by proceeds from restaurant operations.
An iconic brand on the move
Americans are more in love with eating out for breakfast than ever before — and breakfast items just happen to be our biggest sellers. We’ve introduced a new look and modernized the dining experience and brand design, while staying true to our roots. We’ve retained the charm and familiarity of the brand that guests have loved for decades and we’re still the hometown gathering place that’s known for our ‘round-the-clock breakfasts and Southern hospitality.
Under CEO Michael Abt’s leadership, we’ve remodeled 60% of our 400-plus restaurants, featuring the new and strategic Evolution design, which has proven to increase same-store sales. Abt, who was named as one of Nation’s Restaurant News most influential leaders in foodservice in 2016, has built a team of franchising experts that is dedicated to putting franchisees first. “I truly believe great people are your greatest asset,” Abt says. “We’ve built a tremendous team of top performers who are dedicated to serving our franchise partners. That’s why our sales and profits are better than they’ve been in the history of Huddle House.”
Huddle House is a 50-year old iconic and traditional brand that is every bit as relevant today as it was when it opened. Huddle House isn’t trendy and therefore doesn’t go out of style. We possess an “evergreen” value proposition: well-priced, well-portioned traditional meals, open kitchen and table service with a smile. We diversify our revenue over four day parts: breakfast, lunch, dinner and late night.
Small town market strategy yields big city returns
We’ve been a favorite diner in the South since the 1960s, and now we’re expanding into new markets across the United States. Aside from typical metropolitan centers, we also thrive in the smaller towns that other chains deem too small to service. By creating a “first-to-market” opportunity in these smaller, rural towns, we establish ourselves as the place to go for breakfast, lunch, dinner, late nights and weekends.
With this “first-to-market” position, we build fierce brand loyalty, while at the same time establishing ourselves as the foodservice employer of choice. Therefore, we often shut the door to many of our competitors who require larger investments and have to do higher volumes than Huddle House to turn a reasonable profit for ownership. With our smaller footprint, efficient design, and understanding of how to build high customer frequency in smaller, underserved and low-density markets, we make the numbers work by “owning” those under-penetrated smaller markets.
Huddle House is the “big fish in a small pond,” leaving little available market for the other “big fish” full-service restaurant chains. Whether it’s Hazlehurst, Georgia, or Suffolk, Virginia, Huddle House executes a market penetration strategy that has worked well for franchisee investors since 1964.
Our multiple-restaurant formats and flexible business model provide opportunities for single and multi-unit operators alike. Since our Southern diner franchise works so well in smaller communities, entrepreneurs can establish a hometown gathering place that may have been sorely needed. And with our increasing momentum and the pervasive demand for breakfast, Huddle House is worth considering for any multi-unit owners to establish a foothold in the popular restaurant industry or for a first-time restaurateur looking to get established in the foodservice industry.