RISE - Menu Monitor

Krystal Company
Headquarters
1 Union Square, Chattanooga, Tennessee 37402 USA
Tel: (423)757-1550 Fax: (423)757-5610
www.krystalco.com
Ownership: Private
Segment: Limited Service Hamburger
System Characteristics 2006 2005 2004
U.S. Systemwide Sales ($000) 445,471 422,563 414,582
Company-owned ($000) 282,922 265,860 259,371
Franchised ($000) 162,549 156,703 155,211
U.S. Number of Units 403 419 428
Company-owned 233 242 244
Franchised 170 177 184
International Sales ($000) - - -
International Units - - -
Average Sales/Unit ($000) 1,192 1,096 1,065
Concept Positioning |
Krystal Hamburger Restaurants is the oldest quick-service sandwich chain in the Southeast region. Krystal is famous for it
small square hamburgers and steamed-in onions. The Krystal Company owns and operates more than 420 corporate and
franchised locations in 11 states.
Krystal operates freestanding units averaging 2,208 sq. ft. that seat approximately 46-52 patrons. Most units feature drive-thru,
sitdown and carryout service. A new restaurant design known as the SB is smaller in size and has a lighter, brighter dining
atmosphere. The exterior has also been updated to have radius corners with red and yellow glazed bricks on the façade.
Rody Davenport Jr. and J. Glenn Sherrill opened the first Krystal Restaurant in downtown Chattanooga, TN, in 1932. The
founders served 1-oz. hamburgers, cold drinks, coffee, homemade pies, eggs, toast, bacon and waffles. In the 1950s, french
fries and milk shakes were added to the menu, and chicken was incorporated in 1968. In 1985, Rody Davenport III bought out
all other family interests and the chain began re-emphasizing its original 1-oz. burger. In 1992, Krystal issued its first public
offering. Bankruptcy was filed in late 1995 to resolve employee lawsuits alleging violations of the Fair Labor Standards Act. In
1997, the company was acquired by Port Royal Holdings and became private.
Menu Positioning |
Krystal's menu features burgers, salads, sandwiches, breakfast items, sides and beverages. The signature item is the 1-oz.
square hamburger, steamed with mustard, pickles and onions. Other items include Krystal Pups (hot dogs), Krystal Chicks
(chicken sandwiches), Chik’n Bites, Chili-Cheese fries, Chik salads, chili and chili-cheese. Breakfast items are cooked to order
and include the Pancake Scrambler, Southwestern Scrambler, Sausage Gravy Scrambler, Chik Biscuit, Sausage Biscuit and
Hash Brown Krispers. Menu prices range from 56¢–$5.89 and checks average $4.85.
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