Huddle House Plans to Add 100 Units in 5 Years
Huddle House announced that it is spreading its “Any Meal, Any Time” mantra throughout the country with new locations planned for development in a collection of key markets. Today’s most iconic neighborhood diner has more in store for communities clamoring for a warm hometown hub where every conversation, sip of coffee, and bite of home-cooked meals are savored.
Known for its round-the-clock breakfast, Southern hospitality and big portions at fair prices, Huddle House has plans in place to open an additional 100 restaurants over the next five years, expanding its warmth, friendly atmosphere, and charm into key markets throughout Texas and North Carolina, and into attractive DMAs such as Philadelphia, Pittsburgh, Nashville, and Cincinnati. The growth represents a 25 percent increase in unit count.
“What we’ve done extremely well is maintain our neighborhood, hometown vibe while also pushing the brand forward with modern design, menu innovations and operational advancements,” says Michael Abt, CEO of Huddle House. “The brand is sailing on a new plane—advancing with our talented group of existing franchise partners and a new collection of owners that value how we’re evolving and see the benefits of being part of it.”
Driving 24 months of same-store sales increases and an 88 percent growth in units from February 2014—February 2016, Abt leads Huddle House into the fourth quarter with a collection of openings on the horizon. New restaurants are in place to open in Fort Worth, Texas, Ocala, Florida, East Orange, New Jersey, and Jackson, Tennessee, with an additional 34 locations in development. Since implementing a new design at nearly half of all Huddle House restaurants, the brand has achieved a 29 percent increase in average unit volume (AUV) at existing locations that have remodeled and new stores opening with the redesigned model, compared to sales at non-remodeled restaurants.
In fact, Huddle House has such confidence in its business that it is reinvesting in itself. The brand recently acquired 15 locations from one of Huddle House’s largest multi-unit franchisees and is now operating them as corporate locations, doubling the size of the corporate portfolio and allowing the brand to test and fine-tune new operational efficiencies, automation programs, menu items and LTOs before introducing them to the franchise system.
To this end, Huddle House also recently unveiled a number of initiatives to further increase AUVs at its restaurants, including optimizing the kitchen design to increase throughput capacity and operational efficiency in the kitchen’s expediting and service areas. Plus, Huddle House is also rolling out a new back-office system to the franchise partners, marking the brand’s first fully automated back-office tool that will handle inventory and labor management, as well as a new business intelligence tool and a profit and loss reporting platform.
As Huddle House expands, the brand is awarding franchise opportunities to qualified individuals who share the company’s vision, who will follow the proven business model and who are driven to succeed. Tailored to owners and operators who are looking to give back to their community or diversifying entrepreneurs searching to branch out into the restaurant industry, the franchise model provides structure and scalability without requiring previous restaurant experience.