Freddy's CEO says California offers growth despite $20 fast-food wage
Freddy's Frozen Custard & Steakburgers CEO Chris Dull says the chain will keep expanding in California, arguing the market’s density outweighs rising labor costs.
Amid a wave of restaurant pull-backs linked to California’s $20 fast-food minimum wage, Freddy's Frozen Custard & Steakburgers is betting on the state’s market potential. CEO Chris Dull, at the helm since 2021, contends that California’s high population density offers advantages that outweigh cost pressures. He pointed out that when rivals shutter locations, it creates openings for expanding brands like Freddy's. The Kansas-based chain, which runs over 500 outlets nationwide, is recruiting new franchisees and aims to open 60 new restaurants this year, emphasizing Northern California.
Existing California sites will be used to build further “density” against dominant players such as In-N-Out Burger. Freddy's will vary menu prices according to one outlet labor, real-estate and operating costs, a strategy Dull says is necessary to maintain profitability in high-cost markets.
Why it matters
The story shows how a national chain navigates California’s high wage rules, affecting jobs and consumer choices.
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