Article
Krystal moves forward in new markets
Company plans new stores, products in coming year.
February 18, 2009
The Krystal Co. is finding success in several new markets. For example, the brand's most recent store opening, in Columbus, Miss., has exceeded expectations.
TheColumbus store, which launched last week, opened to record levels already," said Brad Wahl, vice president of marketing, The KrystalCo.
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Interior of a Krystal store in Scottsboro, Ala. |
Wahl credits the success of that market with the brand's extending its reach to that area.
"Mississippi is still within the confines of the heritage of the brand," he said.
TheColumbus
"They've done very well for us," Wahl said. "The volume we've been able to move through those locations has been very strong. We haven't run into issues that I've been aware of at this point that the reduced dining room size has caused issues with standing room only."
The new design not only follows consumers' desire for convenience, but also makes it more affordable to open.
"It's a little bit less expensive from an investment standpoint and makes it quicker to be able to pay out and handle the volume that we need or expect in those type markets," Wahl said.
Other areas of growth
Krystal also recently moved into new markets in San Antonio and in Greenville, S.C. The San Antonio market continues to grow, with three stores currently open and two planned for this year.
Although the first twoSan Antonio
"With every new venture, there are successes and there are learning opportunities," he said. "Coming in with just one or even two locations to start in a market that large, without really a media and advertising support plan, made it very difficult for us (initially) to sustain growth and more simply to generate awareness in the market that we're even there."
TheGreenville store and oneSan Antonio
All stores in the three markets are company owned as Krystal tests out the new development areas.
"We can control a little bit easier the overall execution of the brand, when the stores are company owned," Wahl said. "But additionally we as a corporation are taking the risk first in some of these new markets without a franchisee having to put the risk of their own finances on the line in a market that Krystal hasn't been in."
More stores, product rollouts
Wahl said the economic recession is not affecting the company's outlook for the year. Krystal plans 10 new store openings in 2009, bringing the chain's total to 395 stores. The brand also is moving forward with several product launches this year, including a new chicken strip that will be part of a basket meal and crispy onion Krystal burger.
"We are certainly making adjustments based on the consumer situation," Wahl said. "But we believe that part of our strategy is to continue to offer to the consumer reasons to choose our brand for their fast food eating experiences. And many times that involves providing new product news."
Most of those new products will be in the form of limited-time-only launches, with most coming as a rotation of new flavors for its MilkQuakes milkshakes, he said.
"We're excited about 2009," Wahl said. "It is a tough time from the consumer perspective, but that's the great thing about having a brand that's 76 almost 77 years old, is that people recognize us, know us, have trust in us, and we have something unique and different that you can't get in any other food place in the Southeast."
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