The fast food chain Krystal has officially filed for bankruptcy, citing Increasing competition, shifting consumer tastes and the rise of online delivery platforms as the challenges that the brand is struggling to overcome. Along with the high-turnover rate, Jonathan Tibus, Krystal burger's chief restructuring officer, shared "These challenges (together with company-specific business challenges) have resulted in deteriorating financial performance" according to the filing. The filing also revealed that the restaurant chain has debts between $50 million and $100 million dollars and will keep businesses open during the bankruptcy process.
What is Krystal?
Founded in Chattanooga, Tennessee during the Great Depression by Rody Davenport Jr. and partner J. Glenn Sherrill, the Krystal company proved that even in hard times people would patronize a clean restaurant with low prices. Inspired when visiting a White Castle in Chicago, Davenport and Sherrill set up the first Krystal at the corner of 7th and Cherry Streets in Chattanooga. Instead of take out containers, the brand served original Krystal burgers on inexpensive porcelain dishware with the "Krystal" moniker. It wasn't until the 1950s that Krystal opened its first drive-thru.
Today Krystal restaurants operate in Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, South Carolina, and Tennessee. At one point there were a few Krystal locations in Texas. Recently the brand closed restaurants in Jacksonville, Florida, Bristol, Virginia, and even a location in Chattanooga.
The Almighty Krystal Burger
What makes a Krystal hamburger so special? The size and the price! The original Krystal features diced onions, tangy mustard, and a dill pickle, all sandwiched between famously steamed, square buns. The square hamburgers are small, making them perfect to snack on or to eat with french fries and an ice cream milkshake. Along with burgers, chicken sandwiches, and breakfast, Krystal also serves Pups, which are essentially miniature hot dogs.
Will Krystal survive this bankruptcy? Our fingers are crossed and our mouths are full of Krystal burgers.