News

Krystal said last year's store raze-and-redesigns 'raised' the whole brand to new heights

January 22, 2019

Krystal's leadership said that brand is seeing solid results from its revitalization initiatives, including last year's start of effforts to raze and redesign stores. In fact, the brand said in a news release that the five locations revamped last year are now generating sustained sales volume lifts of 70-80 percent, along with average staffing increases of 66 percent. 

Those redesigns are part of a company-wide initiative to improve the dining experience and adapt to changes in consumer behavior. Krystal opened the first of its new prototype, the "Iconic Series," in Jackson, Mississippi last summer. Four other such stores opened in Tifton, Georgia and Tuscaloosa, Alabama, as well as Memphis and Chattanooga, Tennessee. 

Early this Februrary, the prototype's first Atlanta locations will open with their smaller footprints, expanded work zones and double drive-through lanes. The full-glass fronted structures have wood-framed open ceilings and community tables. 

The brand said the stores' increased sales have meant more staff, with team members increasing, on average from 30 employees to 50 employees at each of the five prototype stores. The news release said the chain's five updated layouts are helping fuel higher overall satisfaction (OSAT) scores. 

The company said it plans to redesign 75-100 restaurants over the next five years, or about 40 percent of its corporate portfolio.

The brand said its institution of third-party delivery is also emerging as a key sales driver, particularly for dinner and late-night dayparts. The brand is continuing to grow delivery,  which was instituted in 2 percent of its restaurants in early 2018, but by the end of this January will be featured at more than 60 percent of its stores through Uber, DoorDash, GrubHub and Waitr.

"Delivery is a huge trend that's increased late-night sales by eight percent over last year," Krystal CEO Paul Macaluso said in the release. 

He added that fully half of the chain's third-party delivery sales take place after 10 p.m. and 75 percent after 4 p.m., with significant check size increases, as well.