Dive Brief:
- Krystal Restaurants is building a new c-store-centric design with Circle K in North Carolina, the fast food brand announced Wednesday.
- Krystal and Circle K have partnered in the past on adjoined c-store and restaurant concepts. But the Wilson, North Carolina Krystal, which is expected open this fall, is part of a new generation of Krystal stores with “a sleek and contemporary design.”
- The development is a “a pivotal step in the brand’s plans to expand across the United States,” according to the press release, and follows the roughly 300-unit brand’s merger with SPB Hospitality last year and the launch of a refranchising program in August.
Dive Insight:
Krystal’s new design features improved diner accessibility and “a mutually beneficial operations flow between the restaurant and convenience store partners,” the company said. The development comes as c-stores’ competition with QSRs intensifies, which could fuel similar partnerships that allow restaurants to take advantage of gas station traffic and stymie potential negative impacts of strong c-store foodservice programs.
The brand framed the move as part of a strategic expansion in new and existing markets. In 2022, the chain developed two smaller prototypes focused on off-premise sales in an effort to capitalize on the enduring popularity of off-premise service and the lower development costs offered by small units. Krystal has stated it intends to reach 500 units by 2027 — a rapidly approaching deadline. C-store partnerships may be able to speed up that development timeline.
Given the rising popularity of c-store foodservice, partnerships with on-the-go retailers may be appealing to brands looking to expand, like Sbarro, which announced a plan to build up its c-store presence in 2022. Wawa is looking at modular construction and drive-thru units, and companies like Casey’s are growing their menus beyond their historical ranges.
Krystal didn’t immediately respond to a request to clarify what makes the new units different from existing c-store units.
