Quick-service restaurant chain Krystal has announced plans to re-franchise about 100-150 company-owned restaurants in the US.
The company’s plan to re-franchise its restaurants in Alabama, Florida, Georgia, Mississippi and Tennessee to well-capitalised multi-unit operators is part of its ongoing business and fleet revitalisation.
Specialised investment banking firm The Cypress Group, which has been engaged by the company, will be responsible for managing the re-franchising initiative.
Cypress, which is focused exclusively on the restaurant industry, will ensure a consistent approach to the process. The company has completed re-franchising engagements for national and regional brands.
All discussions and distribution of sale materials with potential buyers would be directly managed and coordinated by the company. It will also maintain ongoing interaction with the Krystal team.
Krystal president and CEO Paul Macaluso said: “We’re ready for the next step in the brand transformation that began when I came on board in 2018.
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“We’ve seen great success with the new restaurant prototype, remodels and operational upgrades. It’s time to accelerate the redevelopment of the fleet and expand our footprint through strategic re-franchising.
“While we don’t need full remodels on all the restaurants we intend to sell, we believe these facility investments demonstrate the appeal of Krystal.”
Recently, the company signed franchisees Anand Patel and Kalpesh Das of Slider Joint to a three-unit deal in Jonesboro, Arkansas.
Since last year, the brand has rebuilt nine restaurants and generated first year-on-year comp sales ranging from +29.8% to +107.5% for the periods each location has been opened.
Krystal sells its hamburgers at about 320 restaurants in nine states.