Freddy’s Frozen Custard & Steakburgers tabs Winnipeg for first Canadian site By: Gabrielle Piché Posted: 5:51 PM CDT Friday, Oct. 18, 2024

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Frozen custard won’t be a United States trip away for Manitobans much longer.

Freddy’s Frozen Custard & Steakburgers, an American chain, has marked Winnipeg as its initial Canadian franchise location.

The first of three — possibly five — Winnipeg sites will open at 1615 Regent Ave. West. Local franchisee John Hall aims to launch his Kildonan eatery between April and June 2025.

“I’m confident,” Hall said Friday.

Confident because ice cream shops generally do well in Winnipeg and frozen custard is a popular treat in the midwestern U.S., Hall continued.

“If the first one does (as well) as we all believe it’s going to do, why wouldn’t I open more stores?”

Down south, staff serve steakburgers and shoestring fries. Patrons customize their frozen custard treats orders — similar to ice cream, but made with egg yolk and more butterfat — or choose specials like the chocolate brownie.

The Kansas-based brand has been touting its expansion for years. In 2022, it opened at least 140 restaurants across the U.S., surpassing 450 total locations. Today it has 530.

Freddy’s signed a master franchise agreement with North 49 Frozen Custard and Steakburgers in 2022.

North 49 committed to develop and sell at least 20 Freddy’s locations across Canada. In 2023, it signed a deal with another company, ZZA Hospitality, to develop five frozen custard hubs in Alberta.

And now, Hall — via his company Steakburger North — has partnered with North 49 to open at least three Freddy’s shops in Winnipeg. He’s aiming to have all three operational by the end of 2027.

Though custard “is not big” in Winnipeg, it’s a new option, Hall said. He thinks people will be drawn to it.

Manitobans such as Kim Riddolls stop for frozen custard while visiting Grand Forks, N.D., and other American cities.

“Having a frozen custard place here is probably going to be fantastic,” said Riddolls, who’s the operations manager for the Manitoba Restaurant & Foodservices Association.

Anecdotally, American chains seem to be increasingly planting roots in Winnipeg, she added.

Within the past year, Firehouse Subs and Krispy Kreme locations have opened. The latter drew long lineups for weeks.

American chains such as Shake Shack and Crumbl Cookies have also been stepping into Canadian territory. Meantime, the local quick-service restaurant industry has reached new highs, according to a 2024 report by the Canadian Franchise Association.

Canada’s quick-service restaurant industry hit an all-time high market size of US$33.6 billion in 2022, the association wrote, citing Statista data.

Growth was climbing in 2023, it said. “Canadians have become more strategic in where they purchase food due to rising inflation and the reduction of discretionary income.”

Manitobans often embrace American restaurant chain arrivals, Riddolls noted.

The Freddy’s location on Regent Avenue West will have roughly 50 seats and a drive-thru, Hall said. He expects to hire 50 to 60 staff, and is hoping to bring young workers “up the ranks.”

Some will become minority shareholders and take on greater responsibilities as more Freddy’s sites open, Hall explained. He’s made Turner Ethans, 26, his operating partner.

“Sooner or later in life, the clock’s going to turn, and I’m going to have an exit strategy,” said Hall, 59.

He’s led franchises for decades. He sold a pizza franchise in the Regent Avenue area two years ago, after 21 years at the helm.

Freddy’s stood out to Hall because of the menu and the brand’s partnership. It has given him “a huge amount of runway,” he said.

He hasn’t solidified locations for his other two proposed Winnipeg sites. Freddy’s will likely have more Manitoba sites, Hall said, adding he’s looking to retire in the coming years, so other people will head those.

They expect to continue development in 2025-26 with another 130 locations,  according to the company.

Winnipeg is a “great market that will be a wonderful match for the Freddy’s brand,” Andrew Thengvall, chief development officer of Freddy’s, said in a news release.

It will be the first Freddy’s location to open in Canada, despite an Alberta franchisee signing on first. The team is “actively looking” for Alberta sites, said Kim Huynh, public relations manager for Freddy’s.

gabrielle.piche@winnipegfreepress.com