After almost 81 years in the Scenic City, the Krystal Co. headquarters no longer will be located downtown. The company is moving its headquarters to suburban Atlanta.COMPANY AT A GLANCEName: Krystal Co.Owner: Argonne Capital Group, a private equity firm in AtlantaUnits: 350, including 210 company-owned stores, in 11 statesChattanooga presence: 20 area restaurants; downtown headquarters that formerly held 60 workersAtlanta presence: 60 area restaurants; Lincoln Parkway Building in Dunwoody, Ga., anticipated to employ 39 workers by summerAnnual sales: $400 million of system sales, $300 million of direct salesStaff: 6,000 employeesHistory: Founded in Chattanooga in 1932, the nation’s second-oldest fast-food chain behind only White CastleFuture: The company plans to open new restaurants in Knoxville and Ringgold, Ga., in the next few weeks, and will open 11 more in five states through 2013.KRYSTAL TIMELINE• 1932 – The first Krystal opens on the corner of Cherry and Seventh streets in downtown Chattanooga selling small, square hamburgers for 5 cents each.• 1941 – The company grows to 33 restaurants in Tennessee, * Georgia and Alabama.• 1950s – Company adds drive-through windows.• 1965 – Krystal opens 100th restaurant.• 1978 – Krystal has more than 5,700 employees.• 1982 – Present logo is launched.• 1992 – Krystal becomes publicly traded company on the Nasdaq Exchange.• 1997 – Krystal files for bankruptcy and is acquired by Port Royal Holdings in a $145 million deal.• 2003 – Fred Exum takes over as CEO, company begins offering free WiFi.• 2012 – Argonne Capital Group buys Krystal in $175 million deal. Doug Pendergast is named President and CEO. Company celebrates 80th year in Chattanooga.• 2013 – Krystal headquarters will complete move from downtown Chattanooga to the Lincoln Parkway Building in Dunwoody, Ga.
The Krystal Co., the feisty fast-food company founded in Chattanooga, has nearly completed its flight to the Peach State.
Though its red sign could remain on the Krystal building until December, almost all of the workers at the company’s former headquarters will be gone by April, officials said. The accounting department and a few top executives will be the last to leave the Scenic City, as most of Krystal’s top staff search for new homes – or new jobs.
“While the decision to relocate was a difficult one, we are already seeing results that show it is the best way to support our customers and team members,” said Doug Pendergast, president and CEO of Krystal.
The formerly family-owned business was founded here in October 1932 by Rody Davenport and J. Glenn Sherill at a downtown diner on the corner of Seventh and Cherry streets. Six Krystals and a cup of coffee cost 35 cents then.