Krystal will open a new prototype Jan. 10 in Center Point, Alabama, that is 1,000 square feet smaller than its traditional restaurants and does not include a dining room.
At 1,700 square feet, the company-owned restaurant also features a smaller kitchen that uses 20% less space, a double-lane drive-thru, a walk-up window and a pickup area for online guests and third-party delivery drivers. In a statement, President Thomas Stager said the prototype “signals a new day for Krystal.”
“We strategically sought more cost-efficient opportunities to generate a strong sales-to-investment outcome, as well as a design to fast-track franchise development.”
Shortly after declaring bankruptcy in January 2020, the chain was acquired by Fortress Investment Group. Last year, Krystal reported double-digit sales growth and added a new franchisee for the first time in 15 years. New, smaller prototypes are also part of the brand’s turnaround plan as it continues to focus on off-premise business.
“As we step into the next phase of the company, we are also expanding our presence by finalizing new franchising deals around the country with restaurants looking for smaller footprint concepts that can deliver on all-dayparts—breakfast, lunch, dinner, and late-night,” Stager recently said. “These earlier and later hours, increasingly important to a successful concept, are integral in our off-premise strategy. Our new design needs to reflect that trend.”
Stager added that the shift in design maximizes franchisees' investment and “paves the way for us to grow our brand further.”
Krystal is the latest restaurant brand to embrace smaller, to-go-focused restaurant models. McDonald’s recently debuted a to-go-only restaurant in Texas, while Jack in the Box, Panera, Del Taco and others have opened similar models in the past two years as consumer habits have shifted toward digital orders.
Contact Alicia Kelso at [email protected]