Southern Burger Franchisor, Krystal, Sold To Private Investment Firm
Written by Ken Gaebler
Sale is completed during a period of high growth as the company continues to add new quick-serve restaurant locations.
Krystal, a southern fast-food icon with a successful eighty-year history, recently announced that it has been sold to Argonne Capital Group LLC, a private investment firm headquartered in Atlanta.
With more than 6,000 employees and a total of 360 locations across the South, Krystal is a recognized player in the region's fast food franchising market. Known for its small burgers and big taste, Krystal consistently outperforms the marketplace in quick-service sandwich traffic. The chain has experienced a period of significant growth in recent years, opening 10 new company-owned locations in 2011 with continued expansion planned for 2012.
"Finding the right owner, one that will continue to uphold the qualities of the Krystal brand that have made it a Southern icon, has been an important part of this transition," says Krystal president and CEO Fred Exum. "Argonne recognizes the strength of the brand and provides a foundation for the Krystal family of employees and franchisees to continue its expansion by serving our loyal customers."
Argonne was attracted to Krystal based on its continued growth and consistent performance throughout the economic downturn. "We have watched with great interest as Krystal has continued to develop quality products, offer outstanding customer service, and maintain brand dominance through the recession," says Michael Klump, founder and president of Argonne.
According to Argonne representatives, 2012 chain expansion will continue as planned and Krystal's company headquarters will remain in Chattanooga.
The acquisition of Krystal is also a success story for Olympia Fields, IL-based Francorp International, which advised Krystal on its franchising-powered expansion plans.
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