chew on this
Posted by Mark J. Miller on October 28, 2011 03:01 PM
Southeastern burger chain Krystal is planning to supersize itself. The organization should be sold by the end of the year and then the plan is for it to double in size in the next five years to 760 locations, according to the Chattanooga Times Free Press.
"We're halfway through the [sale] process," said CEO Fred Exum, the Times Free Press reports. "The plan is to complete the process by the end of the year."
Exum said that the 79-year-old chain has been modernizing and moving stores to more profitable spots for a few years now, the paper notes.
Krystal is also breaking into virgin territory by creating a storefront version of itself that will fit into “strip malls or other high-density locations,” the paper notes. That version of the restaurant will be tested out in Atlanta under the name Krystal Too.
The tough economy has actually helped Krystal since it is a less-expensive option that consumers have been drawn to, the paper reports.
And though Krystal customers are mostly coming in for its signature little square burgers – 50 percent of the chain’s revenue comes from their sale – there will likely be some new things on the menu soon as well. Jeff Rahn, director of product marketing, told the paper that more than 100 new products a considered annually. "We'll whittle that down to about 60 products, and then we'll do consumer testing on those," he said. "We just want to make sure it’s an appropriate fit, making sure our products appeal to people in the Southeast."