The Krystal Story
It was on October 24, 1932, when the nation’s first Krystal restaurant opened its doors on the corner of Seventh and Cherry Streets in downtown Chattanooga amid the harsh financial times of the Great Depression. Its founders, Rody Davenport Jr. and J. Glenn Sherrill, believed that despite the severe economic upheaval of the times, people would patronize a restaurant that was kept spotlessly clean, provided courteous service and offered a good meal at the lowest possible price. Proving this theory true, the restaurant’s first customer, French Jenkins, ordered six Krystals and a cup of coffee, all for the bargain price of 35 cents.
The restaurant became an overnight success with customers flocking to the small building to savor hot-off-the-grill Krystals and sip freshly brewed coffee from thick china mugs. Those not lucky enough to snag a seat would order sacks full of Krystals to take with them, making Krystal a pioneer in the business of good food "to go."
Although its identity has always centered on the Famous Krystal, the company has remained at the forefront by being innovative, both in its menu and its operations. Beginning with the introduction of little square hamburgers and made-to-order breakfast, Krystal’s menu has evolved to offer customers a variety of unique items perfect any time of the day. Everything on Krystal’s menu fits with this brand positioning – product offerings that are served fresh, hot-off-the-grill and are distinctive in size and shape. Cheese Krystals, Krystal Sunrisers (small breakfast sandwiches), Krystal Chiks (small chicken sandwiches) and Pups (small hot dogs offered with chili and cheese) are just a few of the popular menu items that deliver on this promise.
Krystal also continues to expand its menu variety with breakthrough offerings, including Krystal’s Breakfast Scramblers line that takes traditional plate breakfasts and stacks them smartly in bowls to be conveniently enjoyed scrambled up or layer by layer. Two more popular menu expansions are Krystal MilkQuakes, real ice cream milkshakes made with premium, all-natural ingredients, and Krystal Freezes, the company’s frozen slush drink made from pure cane sugar and fruit flavorings.
On the technological front, the company has served up convenience to its customers by offering free Wi-Fi Internet access, launching its first “Krystal HotSpot” in early 2003 and becoming the largest provider of free Wi-Fi of any fast-food chain nationwide in 2005.
A passion that has been passed down from generation to generation, Krystal has become an experience that nearly every man, woman and child in the South has shared. As a result, many customers have “Krystal Stories” that directly relate to the company and its products. For years now, customers have been sharing their favorite memories by writing letters and sending emails to the company’s corporate office. Recognizing this passion, in 2004 Krystal began recognizing its most devoted customers by inducting them into the Krystal Lovers Hall of Fame. To commemorate the inductions, each inductee’s illustrated likeness is placed on more than one million of the restaurant’s famous Krystal Hamburger and Cheese Krystal Hamburger boxes and used in restaurants across the Southeast.
Krystal is also keeping an eye to the future as the company invests in new restaurant designs, develops new, unique menu items and expands into new markets across the South – upholding its legacy as a Southern icon by offering that one-of-a-kind taste and the personal connection you can’t find anywhere else.
Corporate Executives
James F. Exum, Jr.
PRESIDENT
Chief Executive Officer
Fred Exum was named president and chief executive officer of The Krystal Company in August, 2003, following six years as president and chief operating officer. He is only the sixth chief executive officer in the 77-year history of the company.
During his tenure as chief operating officer. Mr. Exum was responsible for a number of innovations that boosted restaurant efficiency, expanded product offerings, and offered franchisees a selection of modern restaurant designs.
Under his direction, the company launched several new products including the Krystal Chik and breakfast Scrambler, and developed two prototype restaurant designs (KP-2000, SB-31) to maximize use of store real estate and interior working and dining space.
Prior to joining The Krystal Company, Mr. Exum built a successful career as a franchisee for more than 20 years. Most recently, Mr. Exum was founder and chief executive officer of Pennant Foods Corporation, a Knoxville, Tenn. – based company that own and operated 88 Wendy's restaurants. During his tenure at Pennant Foods, Mr. Exum formed several regional franchise groups, including Southeast Food Service Corp., and Coastline Food Services Corp.
He began his career in the Wendy's management training program, and then joined, respectively, Tenent Enterprises Inc. and American Restaurant Corp. systems.
Mr. Exum serves on the national board of trustees of the Fellowship of Christian Athletes, the largest interdenominational, school-based Christian sports organization in America. He is also chairman of the Advisory Board of the University of Tennessee's School of Consumer Services Management, which helps develop students that are interested in pursuing management careers in the service industry
Mr. Exum and his wife Karen have two children and live in Chattanooga, Tenn.
Michael C. Bass
SENIOR VICE PRESIDENT
Administration
Mike Bass is responsible for all activities related to purchasing, company restaurant operations, franchise division, training, quality assurance, and the implementation of innovative research and development programs. He is also responsible for systematically improving restaurant operations and spearheads the company's new product development efforts.
Since joining the company in 1979, Mr. Bass has served as director of purchasing and director of administration. Prior to joining The Krystal Company, Mr. Bass spent 10 years with the Marriott Corporation in the corporate finance and airline catering divisions.
Mr. Bass holds a bachelor's of science degree in accounting from Huntington College in Montgomery, Ala. He currently resides in Ooltewah, Tenn., with his wife and two children.
Bob Marshall
VICE PRESIDENT
Chief Financial Officer
Bob Marshall is vice president and chief financial officer for The Krystal Company. Mr. Marshall is responsible for overseeing all activities related to finance, information technology, accounting and risk management, as well as investor relations. He is also managing the development of new Krystal restaurant locations including site selection and acquisition as well as overseeing construction and property management.
Prior to joining The Krystal Company, Mr. Marshall served as president of the Livingston Company, a private merchant bank that provides growth capital to small and middle market companies in the southeastern United States. He also spent eight years at Chattem, Inc. where he served as the Vice President of Marketing and managed a $300 million portfolio of consumer health and beauty aid brands. Marshall started his career at The Procter & Gamble Company where he held a variety of positions in finance, accounting and marketing.
Mr. Marshall is a graduate of the University of Tennessee and holds a Masters of Business Administration from the University of North Carolina at Chapel Hill. He currently resides on Signal Mountain with his wife Lea Ann and their four children.
Alan R. Wright
EXECUTIVE VICE PRESIDENT
Administration
Alan Wright is Executive Vice President of Administration for The Krystal Company and is responsible for the franchise division, human resources/benefits and marketing.
In September 2001, Mr. Wright joined Krystal as its
Director of Field Marketing and served in the capacity for two years before
being appointed Director of Franchise Marketing. During that time, he
successfully rolled out Krystal franchise marketing cooperatives throughout the
Krystal operating system to improve franchise communications. In October of
2007, Mr. Wright was promoted to the position of Vice President of the
Franchise Division for Krystal, where he oversaw franchise operations,
development and support. Two years later, Mr. Wright received his third
promotion with The Krystal Company and assumed his current title.
Currently, Mr. Wright also serves as a Board member of the Greater Chattanooga Hospitality Association and The Engel Foundation.
Prior to his Krystal employment, Mr. Wright was employed by Olan Mills Portrait Studios in Chattanooga for four years as Vice President of Marketing. Mr. Wright's more than 20 years experience with quick service restaurants began in 1981 while working with a regional advertising agency in Indianapolis whose clients included McDonald's. As a corporate marketing director with Hardees Food Systems, Inc. from 1983-1989 in Rocky Mount, N.C., Wright was responsible for highly successful California Raisin breakfast promotion in 1987. Hardee's grew from 1400 restaurants to 3500 restaurants during his employment. Mr. Wright left Hardee's to join Rent-A-Center, Inc. in Wichita, Kan. for seven years as its Director of Marketing.
Mr. Wright earned a bachelor's degree in marketing from Ball State University. He and his wife, Marilyn, and their three sons live in Chattanooga.
Howard A. Nelson
VICE PRESIDENT
Company Operations
Howard Nelson is director of operations for The Krystal Company. In this position, he is responsible for overseeing all restaurant operations for Krystal's 237 company-owned locations, as well as 147 franchise locations
Mr. Nelson has over 30 years experience in the restaurant business, including many years as a franchise owner for both Wendy's and Panera Bread.
Prior to joining The Krystal Company, Mr. Nelson worked with Hooked on Dough as president/operations partner, DI-NEL CORPORATION as president/franchise owner, Wensouth Corporation as vice president and Wendy's International as franchise field consultant.
Mr. Nelson attended Kent State University, majoring in Biology. He currently resides in Chattanooga with his wife Mary, and sons, Howie and Samuel.
Scott Cochran
VICE PRESIDENT
Chief Accounting Officer
Scott Cochran is Vice President and Chief Accounting Officer for The Krystal Company, responsible for accounting, financial reporting, payroll, treasury, taxation and risk management.
Mr. Cochran began his career with the company in 2005 and has served as the Assistant Controller and Tax Manager, Director of Accounting and Controller prior to his promotion to Vice President and Chief Accounting Officer. Prior to joining Krystal, Mr. Cochran served as a Certified Public Accountant for seven years in the Chattanooga practices of Arthur Andersen, LLP and Ernst & Young, LLP specializing in corporate tax compliance. Mr. Cochran started his career with Wal-Mart Stores, Inc. where he served in various retail management positions for eight years in the east Tennessee and north Georgia areas.
Mr. Cochran holds a Masters of Business Administration (Accounting) as well as undergraduate degrees in both business management and finance from Tennessee Technological University in Cookeville, Tennessee. A native of Pittsburgh, Pennsylvania, Mr. Cochran currently resides in Hixson, Tennessee with his wife Pam and their two children.
Brad Wahl
VICE PRESIDENT
Marketing
Brad Wahl is the Vice President of Marketing for The Krystal Company. Mr. Wahl is responsible for managing all strategies, tactics, and programs related to the company's marketing and branding efforts, including all in-store and company-wide advertising, online marketing strategies, branded events, and public relations campaigns.
Joining The Krystal Company in early 2002, Mr. Wahl first worked as a regional field marketing manager prior to assuming the position of manager of marketing and promotions for the company. In early 2006, Mr. Wahl became the director of brand marketing, where he spearheaded some of the company's most notable and recognizable branding campaigns including Krystal's popular reality-based television commercials and the internationally sanctioned Krystal Square Off World Hamburger Eating Championship.
A collegiate athlete, Mr. Wahl played basketball at the University of Kansas and received his Bachelor of Science from Wichita State University.
David R. Reid
VICE PRESIDENT
Chief Information Officer
David Reid is Vice President and Chief Information Officer for The Krystal Company. Mr. Reid is responsible for managing and developing the company's internet technology department which includes overseeing all aspects of Krystals in- and above-restaurant information systems and services, including software services and support. Network infrastructure, Telecom, Internet connectivity and wireless technology.
Since joining the company, Mr. Reid has been instrumental in the development and rollout of a turnkey, state-of-the-art-in-restaurant system to all company restaurants, as well as many of Krystal's franchised operations. In addition, it has been Mr. Reid's vision and leadership that has helped Krystal become a technology pioneer in the QSR industry as the company became the first to offer free Internet WiFi HotSpots at all company-owned locations in 2005.
Prior to joining The Krystal Company in 2000, Reid was Director of Information Technology for Fazoli's restaurants and, prior to that, served in the same position at Checker's Drive-In Restaurants. Before joining the restaurant industry, Mr. Reid served as Vice President of (Research and Development) for Kinetic Presentations, a computer graphics company in Louisville, Ky. He also worked for The Cobb Group where he served as Senior Author and the Editor in Chief for several publications, including Inside AutoCAD, Inside Solaris, and Inside Microsoft Visual C++.
Mr. Reid earned a bachelor's degree in computer science and engineering math from the University of Louisville. Mr. Reid currently lives in Chattanooga, Tenn. with his wife Kim and their two children.