News

Krystal refranchising up to 150 Southeastern units

Photo: Krystal via Instagram.

October 31, 2019

The Krystal Company will refranchise 100-150 company-owned restaurants in five southeastern U.S. states, through investment banking firm, The Cypress Group, to what a press release said will be multi-unit operators. The refranchised stores are in Alabama, Florida, Georgia, Mississippi and Tennessee.

"We're ready for the next step in the brand transformation that began when I came on board in 2018," Krystal President and CEO Paul Macaluso, said in the release. "We've seen great success with the new restaurant prototype, remodels and operational upgrades. It's time to accelerate the redevelopment of the fleet and expand our footprint through strategic refranchising."

The brand has rebuilt nine restaurants since last year, generating first year-over-year comp sales growth from 29.8 percent to 107.5 percent for the time each stores has been open. But, Macaluso said the company does not believe full remodels are needed for all of the stores being sold. 

Krystal recently signed the brand's first new franchisees in 15 years — Anand Patel and Kalpesh Das of Slider Joint, LLC — to a three-unit deal in Jonesboro, Arkansas. Currently, Krystal has about 320 restaurants in nine states.