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Krystal Headquarters Leaving Chattanooga
The Krystal Company announced Wednesday that it will relocate its corporate office, called the Restaurant Support Center (RSC), from its current location in Chattanooga to a new location in North Atlanta in early 2013. In a news release the company said, "The move will allow the company to deliver support to its 350 restaurants more efficiently and effectively from Atlanta’s central location, particularly with its high concentration of restaurants in and around the Atlanta area."
Chattanooga was the birthplace of Krystal nearly 80 years ago. In its release the company said "Krystal will continue to honor Chattanooga as its birthplace as well as its founding family, the Davenports. The company is searching for a site for an official Krystal museum and plans are underway for an 80th anniversary celebration in Chattanooga next year."
The company said the relocation is part of the ongoing efforts of Krystal’s president and CEO Doug Pendergast, along with the corporate leadership team, to increase customer satisfaction, grow sales and profits, and improve franchisee success.
Pendergast made the announcement well in advance to ease the transition for Krystal’s approximately 60 RSC employees. The majority of the RSC employees have the option to apply for new positions in the Atlanta office. Severance packages and job search assistance will be offered to those who do not relocate.
This move will not affect the 6,000 employees in Krystal’s restaurants.
The company said, "The cost-effective nature of this move will allow the Company to build an additional new store every year. Each of these new restaurants will create about 40 jobs."
“Chattanooga has been a wonderful home for Krystal, and we appreciate the support of the community”, said Pendergast. “Our five-year plan calls for aggressive new store growth and Atlanta provides a more central location with access to the one of the country’s largest airports. Our new support center will enable us to provide better support to our existing restaurants and to accelerate new restaurant development across the southeast.”
Krystal plans to open at least 150 new restaurants in the next five years, creating thousands of new jobs and providing current employees with multiple opportunities for advancement. Krystal’s new leadership team has also outlined plans for improved customer service, greater franchise partner support, and enhanced financial performance. The company has already begun developing a more efficient new store prototype and testing new menu items designed keep its brand fresh and relevant.
Pendergast added: “Our greatest regret is that while this move makes tremendous business sense, it impacts the people who have helped make this company what it is. That is why we are announcing our plan early, providing employees with as much time as possible to adapt. We believe that by working hard to improve our products, service, and restaurants, we can help The Krystal Company return to growth mode and begin adding new stores and jobs, in both existing markets and new markets.”
Photo: The original Krystal Restaurant on Cherry St. in downtown Chattanooga.
CLICK HERE for more photos on Facebook.
CLICK HERE for Krystal's Questions & Answers about the move.
CLICK HERE for Krystal's CEO Biographical sketch
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Last Update on October 01, 2014 07:31 GMT
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But company attorneys have been unable to persuade the union to agree to replace the pension plan with a 401(k) plan. They said yesterday that they need a quick decision on the pension liability because it could torpedo efforts to reorganize.
Union attorneys argue that the pension question can't be separated from the larger issue of the collective bargaining agreement.
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