This Struggling Burger Chain Is Going Seatless To Jumpstart Growth
In the Southeast, Krystal is the biggest player in serving "sackful" square-shaped sliders. However, the old-school chain struggled two years ago
The corporation may open drive-thru restaurants without dining rooms to do that.
In Alabama, Krystal's new prototype with drive-thru and walk-up access but no seating began construction, making it cheaper to build.
By focusing on drive-thru and takeaway, these new sites will be cheaper to build and run.
"You'll have labor efficiency," CEO Tom Stager told Restaurant Business. "(And) if you can build something 25% to 30% less expensive, that's intriguing."
The Alabama Krystal will be 40% smaller than typical. In the company's hometown of Atlanta, Ga., two new concepts launched last year.
It appears customers won't miss dining rooms. The NPD Group reported 116% delivery growth and 20% drive-thru traffic growth from February 2020 to February 2022.
Krystal may need a makeover now. The burger chain filed for Chapter 11 bankruptcy in 2020, citing $50–100 million in debt. Since then, it has added chicken sandwiches
The brand has improved, and sales have returned in 2022, but the firm thinks the new prototypes will boost growth, which has stagnated.
And it's not the only fast-food chain making progress with location reduction, an increasing trend. Taco Bell's first "Defy" location opened recently in Brooklyn Park, Minn.