News

Krystal thriving under new ownership

May 13, 2013

President and CEO Doug Pendergast provided an update on the Krystal brand since it was purchased by Argonne Capital Group last spring. Among the highlights are sales and transaction growth, an increase in profitability and a bigger bonus program for store-level employees.

Pendergast said the company has also paid down a significant portion of its debt, positioning the chain for growth.

"Even though our brand is celebrating our 80th anniversary, we're applying a fresh perspective to all areas of our business," he said. "However, it doesn't mean we're changing everything. We're recommitting ourselves to the founding principles of the brand as captured in our 'Krystal Kreed.'"

Changes include shakeups to the senior management team and advertising team. Also, for the first time, Krystal has added a digital agency to promote the brand.

Krystal is also actively gathering feedback from customers and its 6,000 employees to improve the brand. The data gathered is used to develop strategies that are implemented throughout existing markets, as well as in planning expansion into future markets.

Krystal's target is 500 new stores within the next four years. With two new stores opening within weeks of each other and 11 more scheduled to open throughout 2013, the company is en route to its goal, Pendergast says.

"We actively pursued the best and brightest talent we could find who would be dedicated to turning around the Krystal brand. With support from Argonne Capital, we are now a company that is well positioned and prepared for expansion," he said.

Krystal's new team re-launched its franchise development efforts for the first time since 2006.

"This is significant as it shows that the Krystal brand is gaining strength and potential partners see the brand as one that will be attractive to new and existing markets," said Michael Klump, founder and CEO of Argonne Capital Group.

"We are pleased with their progress and are ready, willing and able to invest our time, ideas and capital in moving Krystal forward."

Krystal has also added Fitzgerald + CO of Atlanta as its advertising and brand agency, while Bright Red of Tallahassee, Fla., is on point for all social media and digital marketing.

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