Fast food chain Krystal is getting a new owner.
SPB Hospitality, the owner of Logan’s Roadhouse, Old Chicago Pizza, and Taproom, announced on Thursday it had completed the purchase of The Krystal Co., the second time the fast-food chain has changed hands in three years.
SPB is an affiliate of New York-based Fortress Investment Group LLC.
Founded in 1932 in Chattanooga, Tennessee, Krystal is known for its sliders and has been called the South’s White Castle, with its menu closely resembling the competitor frequently found in the Northeast.
Krystal currently operates 300 restaurants across 10 states and has a team of over 3,500 employees, according to a press release.
The chain declared bankruptcy in January 2020, and an affiliate of Fortress Investment Group bought it for $48 million in April 2020.
A year after the purchase, the chain experienced a resurgence, with operators recording double-digit sales growth, according to Restaurant Dive.
The company has been focusing on its heritage as the oldest quick-service restaurant in the South and partnerships with celebrity endorsers, naming Grammy award winner 2 Chainz as its Head of Creative Marketing for the brand in 2022.
Krystal operates around 300 restaurants and aims to grow its store count to 500 by 2027.
“Krystal’s innovative approach to their menu, marketing, and overall strategy is inspiring, and over its 90-year history, Krystal has demonstrated its commitment to SPB’s overriding vision of providing a truly exceptional guest experience,” SPB Hospitality Interim CEO Josh Kern said in the press release.
SPB moved its headquarters to Houston in 2021, per Houston Business Journal.
“We continue to have enormous confidence in SPB Hospitality and the work the team is doing to build the most successful restaurant group in the industry,” Morgan McClure, SPB Hospitality’s president and Fortress Investment Group’s managing director, said in the release.
“Krystal’s time-honored brand, and dynamic team, are significant additions to the SPB portfolio and a major step forward in achieving SPB’s vision.”
The terms of the deal were not disclosed.