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Freddy’s Adds Incremental Revenue + Boosts Franchisee Satisfaction with First-Party Catering
Freddy’s is a rapidly growing fast-casual restaurant specializing in cooked-to-order steakburgers and freshly churned frozen custard. The brand implemented Olo’s Catering+ solution in mid-2024 to meet guest demand and ensure franchisees had a reliable system to support incremental sales growth without creating operational challenges. In just four weeks, the brand launched first-party catering across 525 stores. Now, franchisees are empowered to do as much catering as they please, knowing they have all the tools they need to fulfill orders quickly and accurately—and guests placing catering orders experience the same seamless process they’re accustomed to for mealtime orders.
LINKS
13X
Higher average order value for catering vs. mealtime orders
37.29%
Compound monthly growth rate in first-party catering
4
weeks to launch first-party catering at 525 stores

Background
For years, Freddy’s had a scattershot approach to catering. A few franchisees would accept third-party catering orders ad hoc, but there wasn’t a unified catering strategy or established process for menu creation, taking orders, execution, delivery, or marketing.
It wasn’t until Beyond4 2024, Olo’s annual customer event, that Freddy’s decided to capitalize on the growing catering demand and officially launch a first-party catering sales channel to drive incremental revenue.
Freddy’s chose Catering+ for many of the same reasons it uses Olo’s ordering and payment platforms: seamless integration, built-in features to streamline operations, the freedom to use a custom front-end, speed of implementation, and, most importantly, “it just works.” Additionally, Freddy’s recognized first-party catering orders are more profitable than third-party, and they’d have complete ownership over the guest relationship and associated data. According to Freddy’s, all of these are essential to building trust and securing buy-in from its franchisees.
To set franchisees up for success—whether they’re all in on growing catering or simply want to have it as an option—Freddy’s designed a catering-specific menu, local store marketing (LSM) plan, and turn-key process to ensure brand consistency, smooth operations, and guest satisfaction without pulling focus or resources from the core business.
Results with Olo
01
First-Party Catering Launched in 4 Weeks
With support from Olo’s implementation team, Freddy’s launched first-party catering at 525 stores in just one month.
Because the brand already used Olo’s Ordering platform, Olo Pay, and several partner integrations—including loyalty and third-party catering—Freddy’s was able to easily carry over its third-party catering menu, enable catering guests to log in with their loyalty account to earn rewards, and start processing payments with no additional setup required.
02
Immediate Incremental Sales Growth
As soon as Freddy’s soft-launched with Catering+, it began receiving first-party orders. Even without much marketing promotion, the brand felt an immediate impact, with some stores adding thousands of dollars to their weekly average unit volume (AUV) in catering.
While Freddy’s views catering purely as a value add to the business, it has seen a 37.29% compound monthly order growth rate and 13X higher average order value for catering versus mealtime orders.
03
SIGNIFICANT COST AND OPERATIONAL SAVINGS
Freddy’s has seen significant cost savings by enabling guests to order catering through its website and app and using Dispatch, Olo’s direct delivery solution. While catering menu pricing is the same for guests ordering via a third party, Freddy’s retains more profit from direct catering orders—without third-party fees. Currently, 24% of catering orders are delivered via Dispatch.
On the operations side, Catering+ has given Freddy’s franchisees the tools they need to ensure order accuracy, prevent money from being wasted on food costs, and effectively scale their catering program, including house accounts and tax-exemption capabilities.
For Freddy’s, catering will always be a meaningful revenue driver. It only takes a couple of orders every week to be incredibly beneficial to our franchisees. With Catering+, we were able to launch quickly, drive incremental sales, equip our Team Members with all the tools they need to do catering well, and ensure catering orders match our high standard of hospitality.
Sean Thompson, VP of IT
Freddy's Frozen Custard & Steakburgers
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