Krystal is a fast food chain based in Dunwoody, Georgia, with restaurants in the Southeastern United States and Puerto Rico. They’re famous for their small, square hamburgers known as sliders, served with steamed-in onions. Started in 1932 in Chattanooga, Tennessee, by Rody Davenport and J. Glenn Sherrill, Krystal has grown to over 300 restaurants across 11 states. Their menu offers a variety of sliders, breakfast sandwiches, hot dogs, and chicken sandwiches. The sliders, available in flavors like Original, Cheese, Bacon, and Grilled Cheese, are trendy. Additionally, they offer breakfast sandwiches like the Krystal Breakfast Sandwich, Krystal Chicken Biscuit, and Krystal Sausage Biscuit. With an annual revenue of over $500 million and a 1% market share in the fast food industry, Krystal is well-loved in the Southeast, where it has a loyal customer base. Currently, the company is expanding and plans to open more restaurants in the coming years.
Krystal Franchise Cost
The franchise fee for a Krystal restaurant is $32,500. The total investment ranges from $900,000 to $1.3 million. A royalty fee of 4.5% of gross monthly receipts is paid to the company.
Also, Read How Much Does It Cost to Launch an Anago Cleaning Systems Franchisee?
How much is Krystal Burger Franchise?
- Krystal Burger Franchise Fee $32,500
- Krystals Franchise Cost $900,000 – $1,300,000
- Royalty Fee 4.5% of Gross Sales
- Advertising Fee 4.5% of Gross Sales
- Term of Agreement 20 Years
- Is the Franchisee term renewable? Yes
- Renewable Franchise Fees 1.5% of The Initial Fee
How much do Krystal Franchise owners make?
Franchise owners’ earnings can differ based on various factors like the location and size of their restaurant, as well as how well it’s doing overall. According to a report from 2022, on average, franchise owners make around $112,000 per year.
Is the Krystal Burger Franchise Profit Worth the Cost?
Deciding if it’s worth investing in a franchise depends on a few factors, like how much money you have, your experience, and how much risk you’re comfortable with. Starting a franchise typically costs between $900,000 and $1,300,000. This covers things like the franchise fee, setting up the restaurant, buying equipment and stock, and advertising.
Advantages of a Krystal Restaurant Franchise
A business that has been running for 90 years has its advantages. Here are a few you can expect when you franchise a Krystal Restaurant.
The restaurant has been trying out new ideas on its menu lately. If Krystal finds a popular theme or food trend, it could really help boost their business fast.
One technique the company tested is the Nashville Hot Chik, a spicy chicken slider nationwide in 2019. These sliders sold 50% more than anticipated.
The company offers a special deal called “Pick 5 for $5.55.” With this deal, customers can create their own meals by choosing from options like tater tots, French fries, sliders, chilli dogs, or soda. It’s a great way for customers to customize their meals at an affordable price.
The restaurant is also catering to breakfast lovers with their country-fried breakfast item that includes two eggs, biscuit, tater tots, and country-fried steak. This meal looks like a breakfast you’d be served at a sit-down diner.
How is Krystal Territory Granted to Franchises
Krystal lets people open their own restaurants in different areas. They call this area development franchising. This means if you want to open a Krystal restaurant in your town, you can, and maybe even more than one! The size of the restaurant will depend on where it is and how many people want Krystal food there.
Krystal uses a number of factors to decide how territory is granted to franchises, along with
- Population
- Competition
- Demand
- Experience
Challenges of a Krystal Restaurant Franchise
Owning a franchise means you’ll have some hurdles to tackle while running your business. Let me break down what you might encounter with Krystal Restaurants.
Still in the Turnover Phase
It’s good news that Krystal Restaurants has new owners taking care of things. But we don’t have a lot of info on how they’re doing financially since the change. Before you decide to work with them, it’s smart to have your legal and financial experts check things out first.
No Healthy Options
The menu doesn’t have any healthy choices, and there’s nothing for vegans either. The sliders are small, which can be good if you’re trying to eat less. But it’s hard to resist ordering more if you don’t have good self-control.
Lack of Global Presence
Krystal Restaurants have been around for more than 90 years, but they’re mainly found in the southeastern United States. They have hundreds of locations, but they haven’t spread globally yet. It would be great to see them open up in other parts of the U.S. and in different countries around the world.
Minimal New Franchisee Excitement
Between 2005 and 2020, Krystal only got one new franchisee. Why? Maybe people weren’t excited about the brand, or they didn’t see much new stuff happening. Maybe the marketing wasn’t great, or the performance didn’t impress potential investors. It could be a mix of these reasons.
Is the Krystal Restaurant Franchise Right For You?
If you’re someone who likes taking chances, especially when Krystal Restaurants is still recovering from bankruptcy, this franchise might interest you. When a company comes out of bankruptcy, they often make big changes to their look and what they offers. Krystal is doing the same thing.
Krystal has a recognizable brand in certain parts of the country and a loyal following. Just be sure to read all the terms and have a lawyer look through any agreements so you know what you’re getting into as with any franchise opportunity. But as far as branding and food are concerned, Krystal is worth looking at once again.
Conclusion:
Deciding to invest in a Krystal franchise depends on a few things: how much money you have if you know about running restaurants, and what you think will happen in the fast food world. Krystal is a well-known brand with lots of loyal customers and a history of doing well.
Nonetheless, the fast food sector is highly competitive, and Krystal encounters challenges like escalating costs, intensifying competition, and shifting consumer preferences.