This national store and other restaurant chains are interested in coming to Bellingham
A national restaurant chain is interested in entering the Bellingham market, something that could become a trend following the workforce changes that took place early on in the COVID-19 pandemic.
Freddy’s Frozen Custard & Steakburgers has more than 450 restaurants in 32 states and is looking to add Washington state to its list. The company is actively searching for qualified franchisees who are interested in bringing Freddy’s to the Bellingham market, and are targeting late 2023 or early 2024 for the first location in the area, said Andrew Thengvall, the company’s chief development officer.
“Like many smaller towns in the Pacific Northwest, we’ve observed that Bellingham’s population has grown significantly since the start of the pandemic. This turned our team’s attention to the market knowing that Freddy’s resonates well in towns that have a population of around 100,000 residents,” Thengvall said in an email. “Markets of this size allow our franchisees to establish themselves as business leaders within their communities, which is a focus that is engrained to the Freddy’s culture.”
One of the results from the pandemic to this point is having more office employees work remotely, which resulted in some people moving out of large cities such as Seattle to smaller communities areas such as Bellingham. With Bellingham’s population nearing the 100,000 level, it’s attracting companies that scan the country looking for areas to expand, said Ryan Martin, co-owner of Pacific Continental Realty and a commercial broker in Bellingham.
“There are clearly more national retail corporations with their eyes on Bellingham,” Martin said in an email, noting examples like the recent arrival of national clothing retailer Lululemon in Fairhaven. “Corporations like Lululemon base decisions on entering new markets by evaluating local demographics and household income data. I believe that Bellingham has slipped under the radar for many national retailers based solely on the way that demographics are calculated.”
Martin said most available demographic data excludes work-from-home and self-employed residents, which Martin said makes up a significant portion of residents currently moving to Bellingham.
“This trend has been happening for several years now and has the feeling of reaching the tipping point, where national corporations are aware of Bellingham,” Martin said.
National chains are also making adjustments from other trends that developed during the more restrictive periods of the pandemic. To-go and delivery options appear to be here to stay, and Thengvall said their new locations will emphasize off-premise dining, including upgrading its apps for online orders and new delivery options
Freddy’s is known for its cooked-to-order steakburgers, Vienna beef hot dogs and its frozen custard. The company, which is headquartered in Wichita, Kansas, was purchased by private equity firm Thompson Street Capital Partners in 2021 and is growing.
Along with national chains, Martin said regional chains are also looking at the Bellingham area. He also noted that word gets around about certain markets between companies, with some national chains asking for sales data of other chains already in Bellingham to get a better idea of the market.
“In general, there is a lot of synergy with retail. Successful retail tenants like to be located near other successful retail tenants,” Martin said. “As Bellingham continues to grow in population and household wealth, it will continue to attract more national retailers, which will in turn attract more national retailers.”
This story was originally published May 8, 2022 at 5:00 AM.
