Note: This story has been updated to clarify the lease structure for current tenants.
A growing fast-casual restaurant known for steakburgers and frozen custard has its sights set on Galesburg.
A Galesburg developer says he will ink a deal later this week to bring Freddy’s Frozen Custard & Steakburgers to 1120 & 1134 N. Henderson St. The site is located between McDcnald’s to the south and Walgreen’s to the north.
Property owner Rob Benedict tells WGIL the two existing properties on the east end of the property facing North Henderson Street will be demolished to make room for Freddy’s.
“The buildings will be coming down after July 4 to make room for a Freddy’s,” said Benedict. “They were in town looking for property, wanted this site and inquired about it.”
Freddy’s is a leading fast-casual franchise concept with nearly 500 locations across 36 states nationwide. Founded in Wichita, Kansas, in 2002, the brand offers a unique combination of cooked-to-order steakburgers, all-beef hot dogs, shoestring fries and other savory items, along with freshly churned frozen custard treats.
The nearest Freddy’s are located in East Peoria and two in Davenport, Iowa. The East Peoria restaurant opened last October in the Levee District, situated at 134 E. Spinder Dr.
Kim Huynh, public relations manager for Freddy’s, says the company currently has 33 corporate-owned locations and 490 franchise locations. Huynh would not confirm if Freddy’s has plans to locate Galesburg.
Extreme Car Wash Holdings, owned by Benedict, purchased the proposed site in September 2023. Benedict is proposing to subdivide the properties into two parcels. Proposed Lot 1 (east portion of lots) will be approximately .85 acres. Proposed Lot 2 (west portion of lot) will be approximately .76. The property is currently zoned B1, Neighborhood Business.
Benedict said a third building on the west end of the property will remain and be used for future development.
The Planning & Zoning Commission will consider the minor plat of the Freddy Subdivision at its meeting Tuesday. The minor plat would then need approval from the Galesburg City Council.
Benedict said his original plan was to reinvest in the property by rehabbing the units before Freddy’s inquired about the site.
“We didn’t know how we would rehab the building and keep the tenants in there, so the deal with Freddy’s came to our attention,” Benedict said. “We offered it to a couple existing tenants to buy it out, but they opted not to.”
The building on the south end of the property — formerly a laundromat and recently a clothing consignment shop — is vacant, according to Benedict. He said the strip building on the north side of the property has five tenants, including longtime renter First Impressions Nail & Hair.
Benedict said he offered 90 days of free rent to the tenants to allow them time to find new locations. He further noted tenants did not have a lease and were paying rent on a month-to-month basis. The property had been listed for sale for nearly 36 months prior to Benedict acquiring it.
Four chain restaurants known for burgers — McDonald’s, Steak n’ Shake, Wendy’s and Culver’s — are located within a three-block stretch of where the Freddy’s would go on North Henderson Street.
With over 130 locations in development for 2024, Freddy’s aims for 800 operating restaurants by 2026, according to a company news release.
