Kathy and Patrick Terry Build a Texas Burger Chain with a Conscience

In an industry often associated with disposability, Kathy Terry, BBA ’92, and her husband, Patrick Terry, B.S. ’80, wanted to emphasize long-term relationships over short-term gains when starting their Austin burger chain, P. Terry’s. 

Patrick wanted to open a classic burger stand reminiscent of Mack Eplen’s Drivateria restaurants, a group of hometown burger eateries he grew up loving in Abilene. After Kathy read “Fast Food Nation,” an investigative book on fast-food abuses, their commitment to providing quality food and better service took on an added dimension. She gave the book to Patrick and told him, “If you’re going to do this, you should do it right.”

From the beginning, they obsessed over serving the best ingredients at the lowest possible prices. They sourced hormone-free, vegetarian-fed, Black Angus beef — always fresh and never frozen. The Terrys insisted on using Idaho Burbank potatoes for their fries, despite the difficulty that this variety presents in harvesting and storage.

As they expanded, Kathy and Patrick’s yin-yang dynamic helped shape their brand. Patrick used his experience in advertising to maintain the vision of the company. Perhaps most important, though, Kathy became the “conscience of the company,” Patrick says.

The co-founders continue to support not only their employees but also the community. Their quarterly tradition, “Giving Back Day,” has raised more than $2 million for Texas nonprofits since 2006 — donating every penny of Saturday profits across all locations to local charities. The company’s philanthropic instinct extends further still with “Spirit Nights,” which direct a portion of sales to school organizations. And after tragedy struck close to home last year when floods devastated parts of Central Texas, P. Terry’s donated all profits from July 10 — $150,000 — to the Austin Disaster Relief Network.

The Terrys opened their first burger stand on July 5, 2005, in a cramped, 527-square-foot building in Austin. Now they have 37 locations around Austin and San Antonio and outside Houston and more than a thousand employees.

In a story by the Texas Exes Alcalde magazine, the Terrys said they had contemplated a massive buyout offer, but a line from the film “The Intern” dissuaded them: “No one will ever care about your company the way you do.” Nearly a decade later, the Terrys continue to resist selling or franchising.  

—Andrew Logan