Monday, May 01, 2017

What is Huddle House?

Please click here for more information on Huddle House, Inc.

Single and multi-unit owners capitalize on growth and long-term sustainability of our iconic diner franchise
Any meal. Any time. We deliver on our brand promise to guests, making Huddle House an appealing concept to investors.
Huddle House is a Southern diner franchise known for our ‘round-the-clock breakfast, Southern hospitality and being the best place to gather in any hometown. After more than 50 years in business, we’ve earned our status as an iconic brand. Our crowd-pleasing menu of favorites is available any time guests want and business thrives in small towns, suburbs and exurbs. The breakfast portion of the menu accounts for more than half of sales, which is awesome because breakfast items generally have higher margins than food typically ordered in other day parts.
With our efficient and affordable building design, we out-maneuver other food concepts by operating in small towns and rural population centers. Entrepreneurs who open a Huddle House can do big things for a small town by offering a much needed community gathering place and local hangout. But our timeless and traditional model also translates just as easily in the suburbs and exurbs, providing a wealth-building opportunity for multi-unit operators. We’re seeing lots of growth in new areas now for that very reason.
Our collective buying power, centralized supply and focus on lower-cost, higher-margin breakfast foods provide a great earnings opportunity for franchise owners. Our smaller market strategy, where land is still plentiful and affordable, allows franchisees to build significant equity through purchasing both land and building, paid for by proceeds from restaurant operations.
If you’re looking to break into food service for the first time, experienced multi-unit franchisees will often tell you they built a significant portion of their wealth through real estate acquisition. The model of buying land and building has become cost-prohibitive in many larger cities. Many chains don’t know how to operate profitably in towns of under 20,000 residents where land is still available at a reasonable price. Huddle House has a long history of profitably penetrating smaller communities and creating wealth through cash flow generated by restaurant operations as well as equity in both land and buildings.
Of course, our business footprint is flexible. We can fit into urban and inner-city storefronts and residential shopping centers, as well as freestanding buildings in rural communities or truck stop locations.
Breakfast is All Parts of the Day
While more and more QSRs are focusing their efforts on capitalizing on breakfast, there aren’t that many full-service restaurants whose brand means “breakfast” to a large number of regular customers.
Our breakfast menu items constitute more than half of sales in a typical Huddle House, and with higher margins on breakfast items than many other menu offerings, franchisees are able to deliver great food at an excellent value while maintaining strong margins. It’s part of our unique charm that guests love — they know they can get biscuits and gravy or a loaded omelet or a golden waffle any time of day or night.
In-house distribution and centralized supply sources help control food costs.
Opportunities for growth
The first Huddle House was opened in Decatur, Georgia, in 1964, and more than 50 years later, our “Any Meal. Any Time.” philosophy still draws brand fans and new guests. Today we’re a thriving franchise with 400 units nationwide, a strong presence in the South and an increasingly strong foothold in other regions of the country.
What does this mean to an investor?
50 years of brand relevance and long-term sustainability means we are as relevant today as we were 50 years ago. How many iconic restaurant brands from 50 years ago stay iconic? And with 400 locations, we have a scalable model that is battle-tested with time.
Our flexible restaurant models provide opportunities to a range of investors, from the entrepreneur who wants to improve his hometown community to the experienced multi-unit operator looking to diversify his portfolio. Huddle House produces cash flow and builds significant equity when combined with a real estate play. Plus, our diner franchise model is scalable, meaning franchisees can do it again and again, building more cash flow and equity.
“We’ve significantly lowered our initial investment, we’re offering major incentives for multiple units, and we’re increasing our sales and top end,” says Huddle House franchise CEO Michael Abt. “We’re working on improving our franchise margins, making us one of the most attractive food franchises in the market today.”

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