Franchising

California's beloved Fosters Freeze faces future with sticky grin

Fosters Freeze is opening its first constructed store in 30 years later this year, five years after the iconic California chain was purchased by a pair of veteran restaurateurs that cherish the brand every bit as much as their most hardcore customers.

This is the stuff that made Fosters Freeze a household name for many California families. (Photo provided)

April 13, 2021 by S.A. Whitehead — Food Editor, Net World Media Group

Californians have a special sweet and sticky place in their hearts for the icy environs of the state's 74-year-old Fosters Freeze chain and its ice milk and soft-serve offerings. In fact, that sentiment proved to be key in prodding veteran restaurateurs and brothers, Neal and Nimesh Dahya, to buy the company a bit more than five years ago.

Neal and Nimesh Dayha. (shown left to right)

The brothers — admitted hardcore devotees of their home state — said that after 30-plus years owning restaurants in other parts of the U.S. as franchisees of brands like Burger King, Pizza Hut, Applebee's, IHOP and TGI Fridays, they wanted to put their earnings and business acumen into something on Golden State turf.

But just because this 65-store brand has some years on it — almost 75 to be exact — didn't mean the Dahyas weren't afraid to both put some breaking-edge spin on the retro soft-serve icon, and grow it beyond the Golden State's very lengthy borders. So after the past several years of getting what the pair said were some existing kinks out of the brands' chain of communication and operations, the Dahyas and Fosters Freeze are bursting forth in these late-pandemic days with both a new store model and renewed determination to spread the brand's frozen creamy sweet salutations eastward.

"The question we're constantly hearing is, 'When are you coming to my state?'" Nimesh Dahya said in an interview with QSRweb. "We know the demand is everywhere, but we're being very careful to grow strategically. Right now, we're looking for qualified candidates across Arizona and Nevada … because of the states' close proximity to our home state of California.

Fosters Freeze locations have a retro dairy bar feel.

"The many residents of Arizona and Nevada who grew up with Fosters Freeze and are seeking a bite of its nostalgic ice cream flavors and tasty hamburgers make the states an ideal market. That, and the added ease of logistics and distribution capabilities. And, with headquarters nearby, the brand's newest franchisees can look to corporate to be on call for an added layer of support."

So last year, the franchising growth plans began in earnest … yes, in the middle of the pandemic. You see, despite the scourge to the restaurant landscape that COVID-19 has been, Fosters Freeze has fared insanely well, recording a nearly 20% increase in year-over-year sales systemwide in 2020, the Dahyas said. All they needed to accelerate the level of interest in the brand and show off its money-making potential to would-be franchisees was a store that cartoon fellow of the future, George Jetson, would be impressed by.

Who would be at the helm of such a modern QSR masterpiece? Why, one of franchise's oldest family of owners, the Abbots, of course. Specifically, Brad and Jared Abbot, whose family has been with Fosters Freeze almost since the start, after they opened their first store in 1954. The family owns five locations and that longevity and success likely made them the perfect people to open the first new store for Fosters Freeze in 30 years in North Salinas, California, scheduled to open its doors in the fourth quarter of this year.

Jared and Bruce Abbott. (Show left to right)

Also working in the Abbots' favor to for this prestigious role is the fact that the family seems to almost genetically understand what Fosters Freeze franchisees want and need.

"Robert and Charlotte Abbott started small and believed in the product, ice cream," Bruce Abbott said in an interview. "With a large family themselves, I think they secretly knew how popular ice cream was with children and adults alike. Years later, it made sense to evolve with burgers and fries. And that family atmosphere that started in the 1950s has continued — from youth, to the hot-spot after high school sports, and on to the family, and now beyond."

Jared agreed, calling attention to the fact that initially most people knew the brand as the "Old Fashioned" Fosters Freeze, which connects a lot of proverbial dots about what connects communities to this restaurant brand, he said.

"That emotional feeling and attachment to soul-warming food and familiarity has been huge for the chain," Jared Abbott told QSRweb. "It struggled at times to grow and found financial challenges — like any family and organization. Through those challenges there has been changes and those changes have led to growth including the upcoming newest location in the chain, North Salinas Fosters Freeze.

"But what we love about Fosters is the family, community aspect that crosses generations. We get to see families grow up and we are a business that is always essential — food — and always fun — ice cream!"

The word "smitten" comes to mind, after talking to the Abbots. In fact, that's also the word that comes to mind after speaking with the Dahyas because it's clear that level of sentiment is not only what drew them to the chain, but keeps them working so hard to successfully move it forward.

"When the opportunity to purchase Fosters Freeze arose, we were extremely excited because not only would this acquisition give us a business presence in our home state, but we would be the franchisor of a brand, which meant that we could use everything we learned as franchisees to improve the brand from the top," Nimesh Dahyu said. "We saw unlimited potential for Fosters Freeze because it was an iconic California brand that just needed to be updated with the times."

Rendering of Salinas store that will open in Q4 this year.

So that's exactly what they're doing through the Salinas franchise, which looks pretty darn cool in the renderings with all its icy blue auspiciousness that somehow manages to be retro and futuristic at the same time. But it's still just a part of what Neal Dahyu described as almost a holistic approach to business ownership.

"We strategically look (at) all aspects of the restaurant to see how that would impact the customer's experience before any changes are made," Neal said. "One of the things we have done is changed the design and layout of the stores to flow with the current trends, including adding a little Fosters selfie wall.

"Additionally, we are in the process of implementing website and app ordering, and adding self-ordering kiosks. We have also already begun partnerships with third party delivery services so that customers have various options for ordering."

All this nouveau stuff has still to be tempered with one of the brand's most endearing quality's — its oldfashionedness, so to speak — according to Neal. Maybe that's part of why it took what some believe is a long time in the restaurant business — five years to get the brand healthy systemically, so that it could undertake these latest endeavors, but still retain due respect for the legacy of the brand.

"Fosters Freeze has a rich history," Neal Dahya said. "The kids who visited our original locations in the 1940s still frequent Fosters Freeze today. The only difference? They now bring their children, grandchildren and even great-grandchildren with them now. We have strived to keep that classic nostalgia feel, which has created a cult-like following."

The Abbotts are well aware of that cult status since this brand has more or less been a member of their family all their lives. And even though the pair admit that — just like family members — the business can get on their nerves sometimes just because, as Jared put it, "the day-to-day grind," it's still part of them that they want and need to be successful. So, the pair are clearly excited about this new chapter in Salinas which also bodes well for the future of what is their family business.

"That is the ultimate dream isn't it? To continue to grow and set up the future generations of our family, to create a lasting legacy," said Jared Abott, who stepped aside to let Bruce answer the next question on recommendations for others who might want to make a franchise a family business.

"Go for it!!!" Bruce said. "Work hard. Work smart and don't give up! Don't let anyone tell you, you can't be successful. Love your product."

Then, Jared chimed in, "know your industry inside and out. And, when you reach your goal, the pros will far outweigh the challenges, no matter how tough it was or gets."

(All photos provided by Fosters Freeze)

About S.A. Whitehead

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Pizza Marketplace and QSRweb editor Shelly Whitehead is a former newspaper and TV reporter with an affinity for telling stories about the people and innovative thinking behind great brands.