Hugs Café Inc. and KDC recently broke ground on a new $10 million Hugs Café headquarters and training academy in McKinney, dedicated to providing training and employment for adults with disabilities.
“We’re thrilled to continue our training and employment success story in McKinney,” Lauren Smith, executive director with Hugs Café, said in a statement. “This new facility allows us to further address the challenge of high unemployment rates among adults with disabilities who can work and want to work, offering them a path forward and a secure tomorrow.”
Hugs Café said the new headquarters and training facility is made possible by the support of KDC, H-E-B, Sammons Enterprises, Compatriot Capital, McKinney Community Development Corp., Mabee Foundation, and The FS Foundation.
Rendering of Hugs Café HQ and training center in McKinney [Image: Corgan]
Currently, Hugs Café operates four programs: Hugs Café, Hugs Greenhouse, Hugs Home Cooking, and Hugs Training Academy.
The new 13,500-square-foot facility at 221 Andrews Street is slated to open in the summer of 2026, Hugs said. The two-story building will house Hugs Café, which is relocating from 224 E. Virginia St.
Amenities will include a state-of-the-art training academy and training kitchen, four classrooms, a rooftop deck, and a patio. The facility also will have administrative offices, learning areas, and workspaces to facilitate an environment of instructor and staff collaboration, creating a vibrant learning area and workspace.
Hugs Cafe HQ groundbreaking photo: Wythe Portrait Studio
Project team, funding, and impact
“Making this vision into a reality for Hugs Café Inc. is an incredible opportunity for KDC to impact the lives of individuals seeking more personalized training to become part of the workforce,” KDC President Eric Hage said in a statement. “We thank the Hugs Café staff and our fellow donors for letting us take part in building a brighter future for these individuals and their families.”
Through a challenge grant with the Mabee Foundation, Hugs Café Inc. said it has completed 60% of its fundraising goal, with the task of raising the final $4 million in the next 12 months.
KDC is serving as the project developer, Corgan is the architect, and Brasfield & Gorrie is the project’s general contractor, Hugs said. Valliance Bank has agreed to be the strategic financial partner.
Hugs Café is the organization’s flagship program. It employs adults with intellectual and developmental disabilities in a café setting.
The original brick-and-mortar location was created in 2015 by Ruth Thompson. The organization currently employs 75 individuals, 53 of whom represent the disability community.
Hugs Café Dallas to open this fall
Over the next five years, Hugs Café said it plans to achieve several milestones, including serving 650 individuals, establishing 25 nonprofit mentorships, forming 10 curriculum licensing partnerships, and opening three new Hugs Café locations—the first of which will be Hugs Café Dallas, scheduled to open in the fall of 2025.
Hugs said it currently supports other organizations practicing a similar business model in Dallas; Fayetteville, Arkansas; Northbrook, Illinois; Ridgeland, Mississippi; and Tallahassee, Florida.
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