Andy’s Frozen Custard moves up 31 spots on the Franchise Times Top 400 thanks to its 30.7 percent increase in sales.
It’s not easy making premium frozen custard, Andy Kuntz said, but it’s worth it when customers keep coming back for more.
“We serve a very high-quality custard made from very high-quality ingredients, and it takes a lot of work to make it,” said Kuntz, the CEO and namesake of Andy’s Frozen Custard. The frozen dessert is generally richer and denser than ice cream, he explained, thanks to higher butterfat content and the addition of egg yolks to a recipe that dictates slower churning than ice cream.
Andy’s is a top grower among treat brands on the Franchise Times Top 400, climbing 31 spots on the list with its 30.7 percent increase in sales. The Springfield, Missouri-based company upped sales from $145 million to $190 million, to land at No. 254 on the ranking, which lists the largest United States-based franchise systems by global systemwide sales.
Overall, it was another big year for brands in the treat category, which grew overall sales by 8.3 percent to exceed $12 billion. The category also added 930 units to end 2023 with 24,235 locations, a 5 percent increase. In 2022, treats brands on the Top 400 increased sales by 6.8 percent and its unit count by 3.6 percent.
Andy Kuntz is the CEO of Andy’s Frozen Custard, a top-performing brand in the treat category of the Franchise Times Top 400 rankings.
Andy’s Frozen Custard, founded in 1986 by Kuntz’s parents, was one of seven treat brands to post double-digit sales percentage increases last year.
Canfield, Ohio-based Handel’s Ice Cream, No. 320, grew sales by 28.8 percent, from $82 million to $106 million, followed by Florence, Kentucky-based No. 211 Kona Ice, which grew sales by 17.8 percent, from $225 million to $265 million.
The other double-digit sales percentage gainers in the treats category include No. 260 Rita’s Italian Ice (up 15.5 percent), No. 272 Great American Cookies (up 12.9 percent), No. 99 Crumbl (up 10.9 percent) and No. 18 Dairy Queen (up 10.9 percent).
“Sales in 2023 were strong and sales in 2024 are shaping up to be even stronger with same-store sales year to date up by 8 to 9 percent in a year where restaurant industry same-store sales were flat at best,” said Jennifer Schuler, who took over as CEO of Handel’s in March after nine years at Wetzel’s Pretzels, which was one of the top gainers in the Top 400’s snack category.
“It’s a testament to the strength of the brand and consumer demand for a fresh homemade super-high-quality premium ice cream that is priced right and generously portioned,” said Schuler.
Schuler said the key to success for the nearly 80-year-old brand is this: “Keep it simple. Simplicity enables quality and consistency. Simplicity also enables franchisee profitability. This year we’ve identified some process improvements that will further streamline the business and reduce labor time and costs.”
Handel’s average unit volume topped $1 million for the first time last year, according to the company’s franchise disclosure document.
Jennifer Shuler is the CEO of Handel’s Ice Cream, which landed at No. 320 on the Top 400 rankings with $265 million in sales.
When it comes to unit growth, no one in the treat category turned in a better percentage increase than Crumbl. The Utah-based company added 276 locations to hit 978 units, growing its footprint by 42 percent. In comparison, Handel’s increased its unit count by just under 32 percent by adding 30 locations; Andy’s added 21 locations, a 16.7 percent increase, for a total of 147 units.
Dairy Queen, a brand in more than 20 countries, surpassed 7,500 units last year after adding 276 locations, a 3.8 percent increase. Dairy Queen is by far the largest company in the Top 400 treat category with $6.4 billion in revenue. The brand is owned by Berkshire Hathaway under chairperson and CEO Warren Buffet. Its AUV is just over $1.3 million.
The only treat brands with negative year-over-year sales growth in 2023 were No. 327 Marble Slab Creamery, which saw systemwide sales fall by 7.3 percent, and No. 46 Baskin-Robbins which saw sales drop by 1.8 percent. The multinational ice cream chain is now a $2.3 billion company owned by Inspire Brands, which also owns coffee giant Dunkin’.
Meanwhile, Andy’s Frozen Custard is a privately held family operation that in April signed a multi-year extension with Texas Motor Speedway to continue as the entitlement sponsor for the annual NASCAR Xfinity Series race at the Fort Worth venue.
Kuntz said the franchise will continue on the path of slow and steady growth to maintain the quality of the product and maximize unit performance
“We don’t need to be growing any more than we’re growing now. Again, quality of stores is way more important to me than quantity of stores,” he said. “So, we’re not trying to outrun anybody and we’re not trying to beat somebody to the punch.”