A new Freddy's Frozen Custard & Steakburgers is taking shape at 4484 Kester Mill Road, tucked at the edge of the AMC Hanes 12 theater property in Winston-Salem. The fast-casual chain, known for smash-style steakburgers and made-to-order frozen custard, is bringing its drive-through format to one of the city's busiest retail corridors.
The Winston-Salem address was one of ten new restaurant sites Freddy's named as part of an August rollout spanning nine states, according to La Opinión. The restaurant sits at the edge of the AMC Hanes 12 parking lot. In December 2024, the City of Winston-Salem approved a site plan amendment for the site at Hanes Mall Boulevard and Kester Mill Road, under zoning docket W-3636.
A Corridor Built for Foot and Car Traffic
City planning analyses have long classified the Kester Mill Road and Hanes Mall Boulevard area as one of Winston-Salem's most heavily traveled commercial sectors, anchored by Hanes Mall, a Walmart Supercenter, and the AMC Hanes 12 theater itself, according to municipal records. By carving out a drive-through building on an existing theater parking lot, the project allowed developers to tap into that established retail traffic without acquiring a new standalone parcel in a corridor where land comes at a premium.
That strategy fits a broader pattern across Freddy's national expansion. The chain is increasingly favoring in-line and endcap formats, which run an average of $854,834 in development costs, compared with more than $1.5 million for traditional standalone restaurants, Restaurant Dive reports. Lower buildout costs give franchisees more flexibility to plant stores in competitive shopping corridors like the one surrounding Hanes Mall.
Part of a Nationwide Growth Sprint
The Winston-Salem opening lands amid an aggressive year for the Wichita-based chain. Freddy's executives confirmed in July that the company is on pace to open 60 new locations in 2026. Starting from about 580 locations, adding 60 would bring Freddy's North American footprint to about 640 stores, according to a company announcement carried by PR Newswire.
Freddy’s expansion began with a single Wichita restaurant in 2002, followed by its first franchise two years later in Hutchinson, Kansas. In 2021, the chain was acquired by private-equity firm Thompson Street Capital Partners, a change in ownership that came as franchising had become central to its growth. The company’s own history recounts both the first franchise and the 2021 acquisition.
Much of that growth is being driven by large multi-unit operators. JRI Hospitality, Freddy's largest franchisee, expanded its holdings in March by acquiring 43 locations from HCI Hospitality, adding to its portfolio across 18 states, Restaurant Dive reported. Financial disclosures in Freddy's 2025 Franchise Disclosure Document show initial startup costs for a new location ranging from $785,936 to $2,753,566, with open restaurants averaging $1.86 million in annual revenue based on 2024 performance, per Franchise Resales.
The Federal Trade Commission's franchise-buying guidance discusses the disclosure document prospective buyers review when considering a franchise. The document’s cost disclosures are part of the FTC’s franchise-buying rules.
Freddy’s 2026 franchise disclosure document breaks out estimated startup costs by restaurant format: $854,834 to $1.301 million for an in-line location, $1.026 million to $2.361 million for an end-cap, and $1.586 million to $2.802 million for a standalone restaurant. Those are estimated investment ranges, not averages; the format-by-format figures show how site design can affect the capital required.
Filling Out the Triad Market
Winston-Salem's new location also expands Freddy's presence across the Piedmont Triad, joining active restaurants in Burlington, High Point, and Lexington. Freddy's also has an active restaurant in Concord, outside the Triad.
Freddy's traces its roots to Wichita, Kansas, where it was founded in August 2002 by Scott Redler and brothers Bill and Randy Simon. The trio named the business after their father, Freddy Simon, a World War II veteran and Purple Heart recipient who died in October 2020 at age 95, according to Fast Casual. The menu built around his name centers on cooked-to-order smash-style steakburgers seared with crispy edges, all-beef hot dogs, shoestring fries with a proprietary seasoning blend, and frozen custard churned fresh daily, per reporting carried by PR Newswire.
Hoodline reported that a Freddy's opened at 5628 S. Rainbow Blvd. in Spring Valley, Nevada, in 2020. A grand opening date, local hiring targets, and any traffic management plans for the Kester Mill Road site during peak movie and meal hours have not yet been detailed.
