Industry News | May 12, 2013

Huddle House Offers $25K to Operators Who Remodel

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Huddle House is offering a $25,000 financial incentive to the first 100 franchisees who commit to a remodel by July 31, 2014.

Franchisees would use $20,000 of the incentive to offset the costs of the remodel, with the remaining $5,000 to be used for local marketing efforts.

Should Huddle House reach its goal of 100 participants, the overall company investment in the incentive program would be $2.5 million.

“Because our redesigned restaurants have already seen sales increases of 15 percent or more, we want to arm our franchise owners with the resources required to convert more quickly,” says Michael Abt, Huddle House CEO. “There’s no better way to show our franchise partners how confident we are in the new prototype than to invest our own capital alongside them. Huddle House has withstood the test of time for nearly 50 years, and we’re elevating the image of our brand to remain a relevant driving force in the industry for years to come.”

Huddle House will also offer its franchise partners third-party financing to complete the construction, a first-time initiative for the brand.  

The refreshed Huddle House prototype features a signature tower entrance, plush seating, contemporary furniture, and vibrant lighting. Executives with Huddle House anticipate for more than 90 percent of its units to be reimaged by 2017, thus building brand cohesiveness for consumers at its nearly 400 restaurants. 

Following three consecutive years of comp sales growth, Huddle House received a major boost in October 2012 after naming Abt, an industry veteran with experience building out brands, as its new CEO.

As CEO, Abt will play a major role in the Huddle House evolution by optimizing its current menu and spearheading an aggressive expansion plan. Huddle House is expected to add 135 new restaurants over the next four years by offering franchise opportunities in communities around the Southeast region and Texas.