Franchise Update Magazine Issue IV, 2012 | Page 11

Krystal Klear
New CEO and private equity investor team up
to reinvigorate 80-year-old brand
By Kerry Pipes

D

oug Pendergast makes no
bones about it when he
says one of his goals for
Krystal Burger is to focus
the brand on being better, not bigger.
“We’re excited to take this established
brand that has a great history and make
it even more relevant for existing and
new customers,” says the president and
CEO who’s been on the job only since

last April. Following the recent acquisition of Krystal by Argonne Capital
Group, Pendergast says this relationship will help refresh and reinvigorate
the brand. “I hope we can look back in
five years and see what a turning point
2012 was,” he says.
Pendergast, who holds an MBA from
Harvard, first dipped his toe in the waters of franchising in 2001 with AFC

Enterprises, where he was vice president of corporate strategy. At AFC, he
helped lead the brand to divesting its
Seattle Coffee Company, Cinnabon,
and Church’s Chicken brands, which
generated a 130 percent increase in
shareholder value when the company
sold in 2005. He then became the chief
franchise officer for Church’s Chicken,
overseeing significant new store growth
and unit returns.
He stepped outside of franchising
for a spell in 2010 to work with a pri-

Grow Market Lead

CEO
profile:

“PE can
provide a very
disciplined
focus with a
medium- to
long-term
perspective on
ROI.”
vate equity firm putting together a deal
to create CraftWorks Restaurants &
Breweries Inc., whose brands include
Old Chicago, Gordon Biersch Brewery
Restaurants, and Rock Bottom Restaurant & Brewery. He then served as chief
franchising and development officer for
the new company. It was during this
time, he says, that he really saw the
positive power of private equity. “PE
can provide a very disciplined focus
with a medium- to long-term perspecName: Doug Pendergast
Title: President, CEO
Company: The Krystal Company
Brand: Krystal Hamburgers
Age: 44
Family: Wife Jennifer, and twin 10-yearold daughters, Reagan and Laine
Years in franchising: 11
Years in current position: Less than
1 year

Franchiseupdate Issue I V, 2012 

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