Through corporate moves and an increasing focus on franchising, Andy’s Frozen Custard Inc. President Andy Kuntz is leading the family-owned company in efforts to expand its reach.
Kuntz says the philosophy behind Andy’s Frozen Custard is simple.
“If you’re not taking care of the product and you’re not taking care of your employees, you’re not going to take care of the customer. We feel that if those things are happening, the financial success will come along,” says Kuntz. “At the end of the day, we want the product to be absolutely right and not pretty good, but the best you can buy.”
The company – founded in 1986 by Kuntz’s parents, John and Carol Kuntz, in Osage Beach – has 17 locations, 11 company-owned eateries and six franchise stores.
The Springfield-based custard company’s locations span four states: Missouri, Arkansas, Illinois and Texas. Andy Kuntz says his company employs 200, while franchisees employ another 100.
Springfield’s self-proclaimed custard guy says company revenues grew 15.4 percent in 2012 compared to the prior year, and in 2013, he expects five to seven new Andy’s Frozen Custard restaurants would open.
On the company-owned side, that includes construction starting in January on a relocated Fayetteville store closer to University of Arkansas, as well as two additional sites in Chicago. One franchisee is pursuing a second location in Columbia and another is working to open an eatery in St. Louis. Expanding into new territory, Kuntz says the first shop of a three-store franchise deal in Tulsa, Okla., would likely open by midyear.
Franchise fees are $32,000 for a one-store franchise, as well as 6 percent of sales. Kuntz says the variables involved – such as the land, building and two required custard machines at $72,000 apiece – can put new store costs at more than $1 million.
“You can’t be average in this business and be profitable,” he says, “because there’s too many other guys that can go and buy a soft-serve ice cream machine for $10,000 or they can buy a batch freezer and make ice cream for $10,000 or $20,000, and have a lot less labor.
“Serving frozen custard is a little bit like baking a loaf of bread and serving it right when it comes out of the oven and it’s hot. That’s kind of like serving Andy’s Frozen Custard,” he added, noting custard in the company’s stores is never more than an hour old when purchased.
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