WICHITA, KS – In a strategic move to capture a larger share of the rapidly expanding premium beverage and snacking market, Freddy’s Frozen Custard & Steakburgers has officially announced the launch of "Freddy’s Bevies Custard Cream." This new product line represents the fast-casual chain’s entry into the "dirty soda" phenomenon, a trend that has transitioned from a regional subculture into a national culinary mainstay.

By integrating its signature frozen custard into a versatile beverage format, Freddy’s aims to differentiate itself from competitors while capitalizing on high-margin opportunities that require minimal operational complexity. The launch comes at a pivotal moment for the company as it undergoes aggressive national expansion under new private equity ownership.

Main Facts: The Evolution of the Freddy’s Menu

The centerpiece of this announcement is the "Freddy’s Bevies Custard Cream" collection. The lineup consists of premium sodas enhanced with specific flavor profiles and a proprietary "dirty" element: Freddy’s signature frozen custard. While traditional dirty sodas—a trend popularized in the Mountain West—typically utilize heavy cream or coconut creamer, Freddy’s is leveraging its core product to provide a richer, more indulgent texture.

The initial rollout features a variety of flavor combinations designed to appeal to both traditionalists and experimental consumers. By adding a "dribble" of custard cream to fountain favorites, the brand is effectively bridging the gap between a standard soft drink and a dessert-heavy milkshake.

The strategic reasoning behind the launch is twofold:

1. Consumer Preference: Modern diners, particularly Gen Z and Millennials, are increasingly seeking "snackable" beverages that serve as affordable luxuries or afternoon pick-me-ups.
2. Operational Efficiency: Unlike complex espresso-based drinks or hand-spun shakes that require significant labor and specialized equipment, dirty sodas are relatively low-complexity. They utilize existing fountain infrastructure and custard machines, allowing for a faster speed of service—a critical metric in the fast-casual sector.

Chronology: From Wichita Roots to National Trend-Setter

The journey to this product launch is rooted in Freddy’s steady climb within the American restaurant landscape. Founded in 2002 in Wichita, Kansas, by Bill and Randy Simon and their business partner Scott Redler, the brand was named after the Simons’ father, a decorated World War II veteran. For two decades, the brand built its reputation on a nostalgic, 1950s-style atmosphere centered on cooked-to-order steakburgers and fresh frozen custard.

However, the last five years have seen a rapid acceleration in the brand’s corporate evolution:

• 2021–2023: Freddy’s experienced a period of significant scaling. At the start of 2023, the brand operated 456 locations. During this window, the "dirty soda" trend began to explode on social media platforms like TikTok, led by brands like Swig and Sodalicious.
• Late 2023: In a transformative move for the company’s capital structure, Rhône acquired Freddy’s from Thompson Street Capital Partners. This acquisition was specifically designed to provide the financial runway necessary for large-scale national expansion and modernized menu innovation.
• 2024–2025: The brand’s footprint grew to 580 locations by the end of 2025. During this time, internal R&D focused on how to enter the beverage space without compromising the "cooked-to-order" speed that defines the brand.
• April 2026: Freddy’s bolstered its leadership team by hiring two seasoned development executives to oversee the next phase of franchising and real estate acquisition.
• June 24, 2026: The official debut of "Freddy’s Bevies Custard Cream," marking the brand’s most significant menu category expansion in recent years.

Supporting Data: The Economics of the Sip

The decision to lean into premium beverages is backed by compelling financial data. According to Freddy’s 2025 Franchise Disclosure Document (FDD), the brand’s franchised restaurants achieved an Average Unit Volume (AUV) of approximately $1.9 million. While this figure represents a healthy performance in the fast-casual burger segment, the introduction of premium beverages is viewed as a primary lever to push AUV toward the $2 million milestone.

Key Growth Indicators:

• Store Count Expansion: From 456 (2023) to 580 (2025), representing a 27% increase in physical presence over two years.
• Projected Growth: The company has slated approximately 57 new franchised openings for the remainder of 2026.
• Profit Margins: Beverages typically carry a lower Cost of Goods Sold (COGS) compared to protein-heavy items like steakburgers. Industry analysts suggest that premium sodas can offer gross margins exceeding 70%, significantly higher than the margins on traditional combo meals.

Furthermore, the "snackification" of the American diet has created a "fourth meal" window—the period between 2:00 PM and 5:00 PM. By offering a premium, custard-infused beverage, Freddy’s can drive traffic during these traditionally slower hours, maximizing labor efficiency and real estate utility.

Official Responses: Leadership Perspectives

Company executives have expressed high confidence that the new beverage line respects the brand’s heritage while meeting modern demands.

Rick Petralia, Freddy’s Senior Director of Menu Strategy and Innovation, emphasized the timing of the release. "Premium beverage growth is exploding right now," Petralia stated. "Consumers are looking for more than just a standard soft drink; they want an experience. Our existing menu already offers a unique advantage. Because we use custard rather than standard dairy or coffee creamers, we can provide a richer, creamier texture that our competitors simply cannot replicate."

Petralia further noted that the "Bevies" line was designed with operational simplicity in mind. "We wanted to provide a ‘wow’ factor for the guest without adding undue stress to our back-of-house teams. These drinks are built quickly, ensuring that our drive-thru times remain among the best in the industry."

Corporate leadership under Rhône has also signaled that this is just the beginning of a broader strategy to modernize the Freddy’s experience. The recent hiring of new development executives suggests that the brand is looking to move into more diverse real estate markets, including high-traffic urban centers and non-traditional locations like airports and universities, where portable, premium beverages are high-performing assets.

Implications: The Future of Fast-Casual Beverages

The launch of Freddy’s Bevies Custard Cream has broader implications for the fast-casual industry and the competitive landscape of "treat culture."

1. The Challenge to Specialized Beverage Chains

Until recently, the "dirty soda" market was dominated by specialized players like Swig or soda-focused shops. By integrating these items into a full-service burger concept, Freddy’s is positioning itself as a one-stop shop. This "veto-vote" strategy ensures that if one member of a family wants a burger and another wants a trendy TikTok-style drink, Freddy’s becomes the default destination.

2. The Labor-Efficient Innovation Model

As labor costs continue to rise, restaurant brands are moving away from menu items that require extensive prep time. The "Custard Cream" line is a masterclass in "low-complexity, high-impact" innovation. It uses ingredients already in the pantry (soda and custard) to create a new revenue stream. This model is likely to be emulated by other chains looking to refresh their menus without increasing headcounts.

3. The "Snackification" of the Menu

Freddy’s is acknowledging a shift in consumer behavior where beverages are no longer just an accompaniment to a meal but are the destination itself. This puts Freddy’s in direct competition not just with Culvers or Sonic, but with Starbucks, Dutch Bros, and McDonald’s new beverage-centric spinoff, CosMc’s.

4. Brand Equity and Modernization

For a brand built on 1950s nostalgia, there is always a risk of becoming stagnant. By adopting the "dirty soda" trend—a quintessentially 2020s phenomenon—Freddy’s is successfully bridging the gap between its retro roots and contemporary food culture. This helps maintain the brand’s relevance with younger demographics who may not have a personal connection to the 1950s aesthetic but are highly influenced by digital food trends.

Conclusion

As Freddy’s Frozen Custard & Steakburgers moves toward its goal of 600+ locations, the introduction of the Bevies Custard Cream line serves as a testament to the brand’s agility. Under the guidance of Rhône and a bolstered executive team, the company is proving that it can honor its "steakburger and custard" foundations while aggressively pursuing the high-margin, high-growth beverage trends of the future. Whether this custard-infused innovation will become a permanent staple or a seasonal sensation remains to be seen, but for now, Freddy’s has successfully signaled to the market that it is ready to compete for the "afternoon treat" crown.