Fast-casual restaurant Freddy’s has been acquired by investment funds affiliated with global private equity firm Rhone in a bid to expand into new markets.
Previously owned by St Louis, Missouri-based middle-market private equity firm Thompson Street Capital Partners, the chain operates more than 550 locations in the US and Canada, generating over $1 billion in sales last year.
“This acquisition marks a pivotal moment for Freddy’s,” said Chris Dull, president and CEO of the chain.
“Over the last few years, we’ve seen steady growth and surpassed many milestones for our brand, while simultaneously strengthening our franchise system and building a loyal guest following.
“We’re excited to take our success to the next level with this new partnership with Rhone.”
Rhone’s experience in supporting businesses expand globally through partnerships with management teams will allow the company to drive growth and create long-term value for Freddy’s.
“Rhone looks forward to bringing its experience with global consumer brands to its most recent investment in Freddy’s as the company expands its footprint and further improves its guest experience,” said Lucas Flynn, MD at Rhone.
Over the past five years, Thompson Street Capital Partners has focused on growth investments to accelerate Freddy’s unit and average unit value (AUV) expansion, while improving its foundation to enhance guest experience, back-of-house efficiency, consumer digital platforms, and more.
“Our partnership with Freddy’s was centered on building an even stronger foundation for the brand—investing in people, systems, and innovation,” said Joe St Geme, MD at Thompson Street Capital Partners.
“Those efforts were extremely successful, resulting in sustained growth and the achievement of significant operational and strategic milestones during our ownership.”
The acquisition will not impact Freddy’s executive team, ensuring that the brand continues to provide products, including steakburgers, frozen custard treats, and shoestring fries, of a consistent quality.
