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Thinking small makes it big for iconic restaurant brand

Paul Macaluso, CEO of Krystal restaurants, talks about trying to boost profits after taking the helm of the Atlanta based company during an interview inside the Broad Street location in Chattanooga Monday morning. Longtime employee Pat "Miss Pat" Lawson is seen in the dining area, at right.
Paul Macaluso, CEO of Krystal restaurants, talks about trying to boost profits after taking the helm of the Atlanta based company during an interview inside the Broad Street location in Chattanooga Monday morning. Longtime employee Pat "Miss Pat" Lawson is seen in the dining area, at right. Paul Macaluso, CEO of Krystal restaurants, talks about trying to boost profits after taking the helm of the Atlanta based company during an interview inside the Broad Street location in Chattanooga Monday morning. Longtime employee Pat "Miss Pat" Lawson is seen in the dining area, at right.

By Dave Flessner 6 min read

After two years of falling sales, Krystal has a new CEO determined to turn around one of America’s oldest fast food restaurant chains.

Paul Macaluso, a 27-year veteran manager at Taco Bell, Burger King, Sonic Drive-in, Moe’s Southwest Grill and McAllister’s, said he jumped at the chance this spring to join Krystal, which he says is one of the most iconic brands in the industry.

“This was just too great of an opportunity to pass up the chance to help a great brand that I grew up with in central Florida and have such great memories about,” the 48-year-old Orlando, Florida,. native said. “We’re at a point now where we are in a bit of a turnaround situation and I love being part of a team to help revitalize the brand.”

Company at a glance

› Name: Krystal, named for being “clean as crystal — yet with a “K” to add a twist› Start: 1932 in downtown Chattanooga by Rody Davenport Jr. and J. Glenn Sherrill› Owner: Argone Capital Group› Headquarters: Atlanta› CEO: Paul Macaluso› No. of locations: 240 company-owned stores and 124 franchised stores in 11 states› Local outlets: 27 stores with about 600 employees› Web site: www.krystal.com

Founded in 1932 in downtown Chattanooga, Krystal is the nation’s second oldest fast-food chain (behind only White Castle started in 1921) and operates 364 restaurants in 11 states. In spite of the improving economy – or perhaps because of it – Krystal sales have dropped in each of the past couple of years and the chain previously pulled out of Texas and hasn’t added new stores in years.