Two Atlanta brands are using Puerto Rico as a beachhead for expanding their restaurant concepts into the Caribbean — and perhaps beyond.
Chick-fil-A, the Atlanta-born chicken sandwich chain still growing rapidly in the United States, has only tentatively dipped its toe into nearby international markets after early forays into the United Kingdom and South Africa fizzled. Chick-fil-A has opened six stores in Toronto and other areas of the Canadian province of Ontario, with plans to introduce 20 total by 2025.
While Puerto Rico is not an international destination (it’s a U.S. territory), the island of 3.2 million American citizens could represent a natural first step into Spanish-speaking markets off the U.S. mainland.
Chick-fil-A in early March opened a 5,000-square-foot store in Bayamón, a suburb of San Juan, and plans for a second one near a Costco in the area soon. Each location is to employ an average of 75 people. News reports indicate that each will be run by a local operator and will utilize local suppliers of coffee, bread and milk, among other items, in a push to benefit the community.
Krystal, the Atlanta-based chain offering beef sliders in their signature square shape, also announced plans to enter the Puerto Rican market this summer. The Southern chain’s first restaurant outside the U.S. will be located in The Outlet Mall 66 in Canóvanas, an indoor mall on the eastern side of the island.
Founded in 1932 in Chattanooga, Tenn., Krystal moved to Atlanta in 2012 when it was purchased by Argonne Capital for $175 million. The brand, which still boasts nearly 300 stores in Southern 10 states and systemwide annual sales of more than $300 million, filed for Chapter 11 bankruptcy protection in 2020 after closing 44 stores. It was sold to one of its lenders, Fortress Investment Group, for a deal valued at $48 million in May of that year.
The brand’s roadmap includes expanding further around the South and up the east coast, extending beyond its core markets of Alabama, Georgia, Tennessee and the Carolinas.
Puerto Rico is one of seven new locations Krystal hopes to open by the end of 2022. Its franchise operator there is Caribbean Cattle LLC, headed up by Justin Tirri, who owns the outlet mall in Canóvanas.
“We wanted to bring a different concept to Puerto Rico. We found in Krystal a unique product for the whole family to enjoy,” Mr. Tirri said in a news release. “We are very happy to add Krystal to our business portfolio and we know that the potential for locations in Puerto Rico is infinite.”