Current business
Krystal restaurants, both company-owned and franchised, operate in Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, South Carolina, North Carolina, Tennessee, and Arkansas. Krystal has also operated several restaurants in Texas over the years. It is often compared[13] to the northern restaurant chain White Castle, and other than the South Central Kentucky and Nashville, Tennessee markets, the two restaurants' market areas do not generally overlap.
Krystal maintained its corporate headquarters in Chattanooga from 1932 to 2013. In the late 1990s, Krystal emerged from a bankruptcy proceeding and a sale of assets that placed majority ownership outside the heirs of the founding families. Port Royal Holdings, Inc. owned the chain from 1997 to 2012, expanding the chain to a peak of over 420 locations in 11 states in 2002, before downsizing and closing dozens of locations. It was owned by Argonne Capital Group from 2012 until 2020 when Fortress Investment Group LLC and its operating partner, Golden Child Holdings acquired Krystal.[14] On April 28, 2023, Krystal was acquired by SPB Hospitality.[15]
Krystal's product line centers on a square hamburger patty slider with a steamed bun, together with diced onions, pickle, and mustard, and collectively called a "Krystal". Small hot dogs called "pups" are also featured menu items. The chain has occasionally expanded its menu to include larger burgers, such as the "Big Angus Burger", a full-size hamburger made of 100% Angus beef.
Krystal is known for a diverse breakfast menu, which includes a made-to-order country breakfast, meat and egg sandwiches, and biscuits, as well as other items. One particularly popular breakfast item is the Scrambler, which includes a layered stack of scrambled eggs, sausage, grits, and cheese served in a styrofoam cup.[16] Other variations of the Scrambler also feature pancakes, sausage gravy, or southwestern-style spices.
In 1998, Krystal introduced the Krystal Chik, a fried chicken breast filet slider served on the signature steamed square bun.[9] Krystal Chiks are extremely popular, along with other chicken, chili, and dessert items. Krystal continues to focus on their core menu products, but is also in the process of redesigning and upgrading their stores to appeal to a mobile and multi-tasking audience.
In the mid-2000s, Krystal tested a prototype for a new high-tech drive-in featuring individual television monitors for ordering and watching television (audio accessed via car stereo), and indoor and outdoor seating areas with multiple big-screen television monitors and free digital jukeboxes.[17]
On January 19, 2020, Krystal filed for Chapter 11 bankruptcy protection, citing "shifting consumer tastes and preferences, growth in labor and commodity costs, increased competition, and unfavorable lease terms" in the filing.[18][19] Many restaurants abandoned in-room dining nearly two months later to combat the COVID-19 pandemic.
On November 23, 2022, Krystal entered the Puerto Rico market.
