Freddy’s, the popular restaurant chain founded in Wichita, has new owners
Freddy’s Frozen Custard & Steakburgers — the popular restaurant chain founded in Wichita 18 years ago — has new owners.
But the restaurant chain won’t be leaving Wichita any time soon.
On Wednesday, Freddy’s owners Randy Simon and Scott Redler signed papers finalizing the sale of the chain to Thompson Street Capital Partners, a private equity firm based in St. Louis. The firm owns several companies, and one of its specialties is software.
None of the parties disclosed the terms of the sale.
Redler said that he, Simon and the estate of Simon’s late brother and Freddy’s co-founder, Bill Simon, would remain minority owners in the company and that he and Randy Simon would stay on with the business for the foreseeable future.
The new owners plan to keep the headquarters in Wichita and keep all of Freddy’s local employees as well, something that was important to the former owners, Redler said.
“We felt when talking to them that they understood what made our company what it is today and that they are going to continue to do that... to take care of our guests the Freddy’s Way, to continue to support our franchisees to be successful and to grow at the record pace that we have experienced.”
The partners said they have been approached many times over the years by different companies interested in buying the restaurant chain, which serves steak burgers, shoestring fries and frozen custard and has more than 400 locations across the country and a couple overseas.
But the fit was never right, said Randy Simon, and he did not want to sell the company when his father, Freddy Simon — the restaurant’s namesake and unofficial spokesperson — was still alive. Freddy, who died in October at age 95, loved playing a role in the business too much.
“I just always wanted him to be king while he was here and to be able to walk in stores and have people come up and talk to him and have him go and talk to people,” Randy Simon said. “It was best for us to be in control if that was the case.”
Randy Simon said he first heard from Thompson Street Capital Partners last spring expressing interest. In October, he and Redler invited its partners to come to the opening of a new Freddy’s store in St. Louis. After that, things moved quickly, he said.
Randy Simon said he believes the new owners understand what makes Freddy’s special and will keep the quality high. He and Redler will continue with their jobs as long as the new owners want them to stay, he said.
Even though not much will change, it was hard to let go of Freddy’s, said Simon, who in 2017 sold 34 Panera restaurants he owned in Kansas and Missouri.
“This is a family company that has three generations involved, and it was probably more difficult to part with than any of the others,” he said.
The first Freddy’s opened at 21st and Tyler in Wichita in August 2002. At the time, Bill Simon and Redler were successful businessmen looking to branch out. Bill had built a career as a vice president of a company that franchised Pizza Hut, Rent-A-Center and other chains. Redler was an accomplished restaurateur who was involved in the development of many concepts. Randy Simon was longtime Pizza Hut and Panera franchisee who approached his brother and Redler about bringing frozen custard to Wichita, which lead to development of Freddy’s.
Bill Simon died of cancer in 2016 at age 61.
The Freddy’s chain has continued to grow and win awards and recognition ever since. It opened 30 new restaurants in 2020 alone, including its 400th location, this one in Overland Park.
Randy Simon said he thinks starting the restaurant chain in Wichita helped it take off how it did.
“If we would have built the first store anywhere outside of Wichita, Kansas, or called it something other than Freddy’s, it probably would have been a one-off deal,” he said. “Being here in Wichita and all the support we get from the community and all the entrepreneurial spirit here in Wichita to back us up, that’s what really made the concept into something that was larger than what anybody ever expected.
“There’s no better place in the world to birth a business than Wichita, Kansas.”
This story was originally published March 3, 2021 at 4:33 PM.
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