Dive Brief:
- Huddle House added a series of development incentives meant to speed up its multi-unit franchised development, the company said in a press release last week.
- The breakfast brand will offer a 0% royalty rate for the first year of restaurant operations for franchisees who agree to develop three or more units. The chain is also providing discounts on the fees paid by operators who sign multi-unit development agreements.
- These incentives could help the brand return to unit growth. Huddle House has seen net unit declines in the last several years, with net three closures in fiscal 2024, which ended in May of 2025, according to its most recent franchise disclosure document.
Dive Insight:
The new incentives reflect parent company Ascent Hospitality’s faith in the brand and operators who join the system, Peter Ortiz, Ascent’s chief development officer, said in the press release.
“We are seeing increasing interest from accomplished multi-unit operators who know their markets and want to build something lasting with a brand that continues to evolve while staying true to the hospitality guests know and love,” Ortiz said, adding that the incentives should help operators move quickly and with confidence.
In addition to the discounts, Huddle House is offering an incentive to complete development ahead of schedule. The brand will grant an additional quarter of royalty abatement for stores that open at least three months ahead of their contracted opening date.
The brand said that its “streamlined prototypes and flexible streetside and non-traditional formats suit locations ranging from colleges and airports to casinos, military bases, and travel plazas,” which could help it attract operators interested in a variety of real estate types.
Huddle House has struggled for years to generate significant store growth momentum, despite signing some major franchising deals, like a 20-unit agreement in 2024 and a total of 120 signed leases over the past three years. Its unit count declined from 304 at the start of fiscal 2022 to 269 at the end of fiscal 2024.
Huddle House’s unit economics have also deteriorated, with its average sales dropping from about $818,000 in 2023 to about $775,000 in 2024, per its FDDs.
To support growth, it developed prototypes designed for greater off-premise access and non-traditional development. Ascent also hired Bob Campbell, an experienced casual dining executive, in January to serve as the brand’s president.
Sister brand Perkins also debuted fast casual units in recent years alongside a general rebrand to increase its sales and return it to unit growth.
The franchise incentives come as some breakfast concepts, like First Watch, are seeing increased unit growth and strong sales performances.
