Private equity firm Rhône finalizes acquisition of Freddy's property

In a significant move for the fast-casual dining sector, investment funds affiliated with the private-equity firm Rhône have acquired Freddy's Frozen Custard & Steakburgers. The deal, reportedly worth $700 million including debt, marks a continued trend of high-valuation acquisitions for franchised brands, such as Tropical Smoothie, Dave's Hot Chicken, and Jersey Mike's.

Rhône, based in New York, is no stranger to the food industry. The firm previously owned the Brazilian steakhouse chain Fogo de Chao for about five years before selling it to Bain Capital in 2023.

Despite the change in ownership, the executive team at Freddy's Frozen Custard & Steakburgers will remain in place. The chain, known for its thin-pressed steakburgers, patty melts, hot dogs, chicken tenders, fries, tots, cheese curds, frozen custard, Concretes, sundaes, and shakes, has prioritized maintaining high-quality food items, genuine hospitality, and cleanliness in its restaurants for the last 23 years.

Freddy's Frozen Custard & Steakburgers was founded in 2002 by brothers Bill and Randy Simon, with business partner Scott Redler. The chain, which includes over 550 units in the U.S. and Canada, has seen impressive growth under Thompson Street Capital Partners, its previous owner. Thompson Street focused on growth investments to accelerate unit growth and average unit volume expansion.

In the past year, Freddy's Frozen Custard & Steakburgers generated more than $1 billion in systemwide sales. In 2024, the chain's Average Unit Volume (AUV) was $1.9 million, according to the Top 500 Restaurant Chain list by Technomic.

The acquisition was not facilitated by social media platforms like Facebook, Twitter, and LinkedIn. For those interested in learning more about Freddy's Frozen Custard & Steakburgers, visiting the official website or keeping an eye on industry publications such as Nation’s Restaurant News, QSR Magazine, or Restaurant Business Online may provide valuable insights.