Billy’s Downtown Diner signs first 10-unit Midwest development deal

By AI, Created 4:03 PM UTC, May 18, 2026, /AGP/ – Billy’s Downtown Diner has launched franchising and signed its first franchisee and regional developer, targeting a 10-store territory centered on Evansville, Indiana, with expansion planned into parts of Kentucky. The deal marks the Lehigh Valley diner brand’s first step beyond Pennsylvania as it looks to grow its breakfast, brunch and lunch concept nationwide.

Why it matters: - Billy’s Downtown Diner is moving from a two-location local chain to a franchised brand with a Midwest expansion plan. - The first regional development deal gives the company a path to open multiple stores in one territory instead of growing one unit at a time. - The model could speed up rollout in markets where operators already have restaurant experience and local knowledge.

What happened: - Billy’s Downtown Diner signed its first franchisee and regional developer after launching a national franchise program. - Paul and Kelly Snider will develop a 10-unit territory centered on Evansville, Indiana. - The territory also includes Owensboro and Bowling Green, Kentucky, plus surrounding areas. - Several sites are under consideration in the Evansville market. - The first location is slated to open this fall.

The details: - Billy’s Downtown Diner is based in Bethlehem, Pennsylvania, and has operated since 2000. - The brand also has a location in Easton, Pennsylvania. - Billy Kounoupis and his wife, Yanna Kounoupis, founded the concept 25 years ago. - The diner is a 7 a.m. to 3 p.m. breakfast, brunch and lunch concept. - Billy’s Downtown Diner is known for scratch-made food, fresh ingredients and a modern atmosphere. - The menu includes classic and inventive dishes, plus options for vegetarians, vegans and people who are gluten-sensitive. - The company says the franchise system includes a mobile-enabled reporting and management platform, intensive training, grand-opening support and turnkey marketing. - Billy’s Downtown Diners use a small-footprint format with a relatively small workforce. - The Sniders previously owned and operated McDonald’s restaurants in the Evansville area for 30 years. - James Wittman is serving as the Sniders’ operating partner. - Dr. Ben Litalien, the concept’s chief development officer, said the Sniders are ideal partners because of their multi-unit franchise experience. - Billy’s franchise model is built around regional developers who acquire territories of one million or more in population, open a flagship location and then expand the market with additional units. - Regional developers are also compensated for attracting franchisees and supporting Billy’s restaurants in their territory. - Mike Axiotis, CEO of Lehigh Valley Restaurant Brands and National Restaurant Association board chairman, said the brand’s hospitality and focus on excellence should resonate in Evansville.

Between the lines: - The initial deal signals that Billy’s is prioritizing operators who can build local momentum and recruit other franchisees. - The regional developer structure lowers the need for a traditional area-developer capital commitment, which could make the brand more accessible to entrepreneurs. - The company is positioning the diner as a differentiated breakfast-brunch-lunch concept rather than a standard all-day diner.

What’s next: - Billy’s Downtown Diner will finalize a site in the Evansville area and open the first Midwest location this fall. - The Sniders will begin recruiting additional franchisees within their territory as the brand expands. - The company is inviting additional franchisees to join its national growth push.

The bottom line: - Billy’s Downtown Diner has turned a long-running local following into its first multi-unit franchise expansion, with experienced operators leading the charge into the Midwest.