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Krystal Headquarters Leaving Chattanooga
The Krystal Company announced Wednesday that it will relocate its corporate office, called the Restaurant Support Center (RSC), from its current location in Chattanooga to a new location in North Atlanta in early 2013. In a news release the company said, "The move will allow the company to deliver support to its 350 restaurants more efficiently and effectively from Atlanta’s central location, particularly with its high concentration of restaurants in and around the Atlanta area."
Chattanooga was the birthplace of Krystal nearly 80 years ago. In its release the company said "Krystal will continue to honor Chattanooga as its birthplace as well as its founding family, the Davenports. The company is searching for a site for an official Krystal museum and plans are underway for an 80th anniversary celebration in Chattanooga next year."
The company said the relocation is part of the ongoing efforts of Krystal’s president and CEO Doug Pendergast, along with the corporate leadership team, to increase customer satisfaction, grow sales and profits, and improve franchisee success.
Pendergast made the announcement well in advance to ease the transition for Krystal’s approximately 60 RSC employees. The majority of the RSC employees have the option to apply for new positions in the Atlanta office. Severance packages and job search assistance will be offered to those who do not relocate.
This move will not affect the 6,000 employees in Krystal’s restaurants.
The company said, "The cost-effective nature of this move will allow the Company to build an additional new store every year. Each of these new restaurants will create about 40 jobs."
“Chattanooga has been a wonderful home for Krystal, and we appreciate the support of the community”, said Pendergast. “Our five-year plan calls for aggressive new store growth and Atlanta provides a more central location with access to the one of the country’s largest airports. Our new support center will enable us to provide better support to our existing restaurants and to accelerate new restaurant development across the southeast.”
Krystal plans to open at least 150 new restaurants in the next five years, creating thousands of new jobs and providing current employees with multiple opportunities for advancement. Krystal’s new leadership team has also outlined plans for improved customer service, greater franchise partner support, and enhanced financial performance. The company has already begun developing a more efficient new store prototype and testing new menu items designed keep its brand fresh and relevant.
Pendergast added: “Our greatest regret is that while this move makes tremendous business sense, it impacts the people who have helped make this company what it is. That is why we are announcing our plan early, providing employees with as much time as possible to adapt. We believe that by working hard to improve our products, service, and restaurants, we can help The Krystal Company return to growth mode and begin adding new stores and jobs, in both existing markets and new markets.”
Photo: The original Krystal Restaurant on Cherry St. in downtown Chattanooga.
CLICK HERE for more photos on Facebook.
CLICK HERE for Krystal's Questions & Answers about the move.
CLICK HERE for Krystal's CEO Biographical sketch
More Business News
Last Update on November 24, 2014 18:22 GMT
EUROPEAN CENTRAL BANK
FRANKFURT, Germany (AP) -- A member of the European Central Bank's rate-setting council has said monetary policy cannot boost long-term growth and called instead for reforms by governments to make the weak economy more investment-friendly.
Jens Weidmann said in the text of a speech in Madrid on Monday that low interest rates and stimulus measures can boost short-term demand but that central bank action "cannot permanently boost growth prospects."
Weidmann, who also heads Germany's Bundesbank central bank, said that long-term growth depended on countries' willingness to lower barriers to investment by streamlining bureaucracy and rules on hiring and firing.
His remarks follow a speech last week by ECB President Mario Draghi in which he said the bank was ready to do more to boost the struggling economy.
ATHENS, Greece (AP) -- Greece may be exiting a cruel six-year recession, but it will take at least 20 years for employment to regain pre-crisis levels without concerted action, the United Nations' labor organization says.
An International Labor Organization official says a series of ILO recommendations could speed up the process by about eight years.
ILO research department head Raymond Torres outlined the proposals in a new ILO report presented in Athens on Monday. They combine emergency measures -- including a 1 billion euro youth employment program and improved commercial credit conditions -- as well as structural reforms.
Greece nearly went bankrupt in 2010 after years of profligate public spending, and took harsh austerity measures to secure international bailouts. Unemployment is 26 percent, with most jobless people at least a year out of work.
Meanwhile, the Greek finance ministry says the country's debt inspectors will meet with Greek officials in Paris on Tuesday to move ahead with the stalled review of the nation's financial reforms.
HARTFORD, Conn. (AP) -- Louis Chenevert (Shen-eh-'VAIR), the chief executive officer of aerospace and building systems giant United Technologies Corp., is retiring abruptly after six years and will be succeeded by the company's chief financial officer.
The Hartford, Connecticut, conglomerate announced the change of leadership on Monday. It promoted CFO Greg Hayes to the top job.
Chenevert steered United Technologies' $18.4 billion purchase of aerospace parts maker Goodrich Corp. in 2012. It was the industry's largest deal and gave the company a stronger presence in the aerospace industry.
Chenevert iinformed the board of directors of his retirement as chairman and CEO effective immediately.
Edward A. Kangas, lead independent director, has been elected non-executive chairman of the board.
The 54-year-old Hayes has been with United Technologies for 25 years and has been hief financial officer for the past six years.
LONDON (AP) -- Google has agreed to a settlement with a former Morgan Stanley banker who sued the search engine over defamatory Internet posts.
Daniel Hegglin, a Hong Kong-based investor, went to Britain's High Court to force Google to ensure posts falsely labeling him a murderer, pedophile and Nazi didn't appear in search results.
Hegglin's lawyer, Hugh Tomlinson, said Monday that the case had been settled. He didn't disclose details, but said the settlement "includes significant efforts on Google's part to remove the abusive material."
Google lawyer Antony White said Hegglin had received an "exceptional" amount of Internet abuse.
He said Google wasn't responsible for policing the Web, but would "continue to apply its procedures that have been developed to assist with the removal of content which breaches applicable local laws."
STOPPING CAR HACKERS
LOS ANGELES (AP) -- Where consumers see an advantage in cars that connect to the Internet for entertainment or use computers to parallel park, hackers see an opportunity.
In staged tests, hackers have shown that they can penetrate cars' networks and cut the brakes -- or lock them up -- or even kill the engine.
While there are no publicly known instances of a car being commandeered outside staged tests, neither industry nor the government is waiting.
One Defense Department-funded program seeks to reconceive the most critical lines of computer code that control the car in a way that could make them invulnerable to major known threats. The model code would be distributed to automakers, who could adapt it to their needs.
WASHINGTON (AP) -- U.S. regulators have strengthened their warning against use of a once-popular device for gynecologic surgery that can spread unsuspected cancer, saying its risk is only justified in a fraction of patients.
The Food and Drug Administration is updating its April safety warning, now saying doctors should not use the devices, called laparoscopic power morcellators, for performing a hysterectomy or removing uterine fibroids "in the vast majority of women."
The FDA's Dr. William Maisel says there are safer options for the procedures for most patients -- but he said the device may be appropriate for some women.
One manufacturer, Johnson & Johnson, directed surgeons to stop using its device for the procedures in April, when concerns about inadvertently spreading cancer inside women's abdomens first arose. It's now conducting a worldwide recall.
PITTSBURGH (AP) -- United States Steel Corp. has announced it will build its new world headquarters in Pittsburgh as part of the NHL's Penguins' redevelopment of the former Civic Arena site.
Company, team, city and state officials made the announcement Monday.
The steel giant has been in talks with local leaders about whether to remain in Pittsburgh, as the current headquarters in the 64-story U.S. Steel Tower -- downtown Pittsburgh's highest building -- has shrunk in recent years as other tenants have occupied more space in that building.
The Penguins reached an agreement last fall with local officials about the scope of the $440 million redevelopment.
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