P. Terry's: The Burger Stand as Unique as Austin

"It's not always perfect but I think we're unique." —Patrick Terry†

Did you know that the hamburger was born in Athens, Texas?

Well, at least that’s what the Texas Legislature declared in a 2007 House Concurrent Resolution, recognizing the East Texas town as the “original home of the hamburger.” To be fair, the resolution also acknowledged that others claimed to have invented the American food staple, too, but cited research that seemed to favor Athens.

The origins of the hamburger are uncertain, and claims have also come from Wisconsin, Connecticut, and Oklahoma.

Walter Anderson from Wichita, Kansas, who, with E.W. “Billy” Ingram, founded White Castle in 1921, is also credited with inventing the hamburger as it is known today—with a bun. White Castle is often regarded as the first fast food hamburger chain. They were followed by many, including the McDonald brothers, with the creation of McDonald’s in 1940.

I always had this love affair with burgers, fries, and a shake. It just seems so American to me, Americana. It's something simple that I can understand,
and I think people get a lot of pleasure from.
—Patrick Terry

Fast forward to mid-2005 in Austin, Texas. At the corner of South Lamar and Barton Springs, in a 527-square-foot building with a retro look, no dining room, and only a drive-thru, a new burger joint just opened its doors. Also located in that prime spot in Austin, no less than five fast food giants surrounded it: Jack in the Box, Taco Bell, Wendy’s, Taco Cabana, and McDonald’s.

“And today we’re across the street from McDonald’s. Everybody else is gone. So, we were never intimidated by the big guys.” —Patrick Terry

Twenty years ago, on July 5, 2005, Patrick Terry and his wife, Kathy, launched their vision of a traditional burger stand, with a specific and original mission in mind. The couple aspired to sell healthy burgers, fries, and milkshakes at a price lower than the competition. P. Terry’s Burger Stand was born. This month,
P. Terry’s, now a beloved Austin institution, celebrated its 20th anniversary.*

Patrick Terry was born in Fort Worth and raised in Abilene, Texas, at a time when Mack Eplen's Drivateria was the go-to burger stand. After graduating from UT Austin, he worked in advertising and headed the Texas Sesquicentennial Commission.

Kathy Terry grew up in Midland in a working class family. She graduated from the University of Texas at Austin and worked on patent-infringement litigation issues.

The Terrys have two daughters.

Show up, work hard, think big and be kind. —Kathy Terry

Patrick Terry’s dream was to own and run a classic burger stand, like the ones he remembered from his childhood in Abilene. He waited five years for the perfect spot, and when that location became available, he took a “leap of faith.”

The original P. Terry's on its 20th anniversary. Customers braved the rain to celebrate.

The burger stand was both traditional and unique. It aimed to offer a simple menu that included classic burgers, fries, and milkshakes, while also being both healthy and affordable. It was an ambitious yet simple goal, one that required hard work from the Terrys and their employees and immediately received support from the Austin community, to which the Terrys would regularly give back over the years.

This July, P. Terry’s celebrated 20 years of serving fresh burgers and fries, with now more than 30 stores, expanding beyond Austin into San Marcos, San Antonio, and even Houston—a well-deserved and unique success.

Values

Tradition, Family, Service, Giving Back.

Virtues

Hard Work, Perseverance and Patience, Humility, Growth Mindset, Pursuit of Excellence, Business Acumen, Community.

[*I had planned to finish this article on July 4, but the events in Central Texas captured my attention instead. In the aftermath of the floods, many businesses chose to donate food or money, or to allocate a portion of their profits to relief efforts. P. Terry’s was among those, and what happened only confirms P. Terry’s generosity and support from the Austin community.]

Tradition: Bringing Back Simple & Good Products and Service

Patrick Terry’s “fascination with burgers, fries, and milkshakes” started with a childhood favorite: Mack Eplen's Drivateria, which he credits with having “an amazing influence” on him :

“He did everything from scratch. He had a commissary, made his own buns, ground his own meat. I mean, it was just amazing the quality that he offered in such a small town at such a great price.” —Patrick Terry

Childhood favorites often involve family memories. If, as a child, you’ve begged your parents to take you to have a burger and fries, you know what I’m talking about: The excitement was palpable—it was a whole experience going and dining there.

This is why, after opening their first location, which was in the best spot but only had a drive-thru, the Terrys opened a second one that had a dining room.

“I can still remember a car pulling up and a group of little boys jumping out of the car and racing to the doors with their parents behind them. I can't get that vision out of my mind because it was really what we were trying to achieve … a place where people would genuinely be excited to go to and enjoy what we were hoping would be a meal that was special.” —Patrick Terry

Terry’s vision is straightforward and appeals to a quintessential and traditional American value—the family—by allowing for special moments and memories with those you love to be created. No fuss: The focus is on offering a simple menu (not a choice of 10+ types of burgers), with simple but quality ingredients.

P. Terry’s website and LinkedIn page emphasize the traditional and Americana sides of the business, as well as the “small-town hospitality” it aims to recreate. “I wanted a service that was back-in-the-day, that used to exist, that I think has, for the most part, fallen off,” Terry explains.

On a similar theme, the googie architecture used for all P. Terry’s stands intentionally aims to create a feel of timelessness.

Dripping Springs location

A Culture Grounded in Family, Service, and Hard Work

Before opening P. Terry’s, Patrick and Kathy Terry were no strangers to starting a business or managing a restaurant. Patrick Terry launched his burger stand in his mid-40s, and the couple put all their energy into it. Both emphasize that it was hard work. Kathy Terry confirms that “the first three years were really hard … we were doing everything.” And Patrick Terry insists he couldn’t have done it without his wife.

You have to have some grit and perseverance. Realize you didn’t get the answer you were expecting. Just go ahead and try again tomorrow. —Kathy Terry

Passion, dedication, patience, and perseverance were on the menu. Patrick Terry is deeply passionate about the company’s mission and was willing to invest the necessary energy and time to make it successful. He recalls that when they started, “I … devote[d] a large portion of my life to that business. I work[ed] my butt off every day. I would work from 7 in the morning till 10 or 11 at night until I just couldn't do it anymore, and I did it pretty much every day.”

It was a family business from the start as the couple worked together to make the venture successful. Patrick Terry had set the bar high and had decided never to bend the burger stand’s standards he had established. Terry was ambitious, but the high standards for product quality and service are now well-known as part of what makes P. Terry’s a favorite of Austinites.

To reach those standards and last 20 years (and counting), Patrick and Kathy Terry slowly but surely built a company culture that focuses on taking care of each other (employer-employee) and giving back (to the community).

P. Terry’s employees, some of them who have been with the company nearly from the beginning, are entitled to benefits that are uncommon in the fast food industry.

As soon as it became financially possible, the Terrys decided to pay their employees a minimum wage of $15. Patrick Terry believes it benefits them because they retain staff while helping them live in an increasingly expensive Austin. It was, notwithstanding, a voluntary choice made by the company because it could.

But there’s more. A few years after P. Terry’s first opened, one of the company’s employees was unable to come to work because his pickup truck had broken down and he couldn’t afford to fix it. With humor, Terry recalls that this employee was taking care of the fries, and in his absence, Terry would have to take over, but he didn’t like taking care of the fries, so he offered to lend him money without interest to fix his truck. This became a company practice: when an employee faces an unforeseen expense, P. Terry’s can provide an interest-free loan that the employee can repay through paycheck deductions at a pace that suits them.

No politics or virtue signaling here, however. Terry understands that taking care of one another, just as family members would, is beneficial to all family members.

Family emerges as a prominent theme in the P. Terry’s company culture. When they started, the Terrys worked alongside their employees full-time, and, as Kathy Terry explained, they got to know them and their lives.

An early moment in the company's history created a family-like tradition that became a core part of the culture. Kathy Terry once realized at the end of the day that it was an employee’s birthday. She had worked with that employee all day but did not know. That evening, she decided to bake a cake. For the next few years, Kathy Terry personally baked a birthday cake for each employee. As the company grew, it became increasingly difficult for her to continue doing so. However, the company did not stop the tradition. The Terrys hired someone full-time to bake and deliver the birthday cakes and even bought a company car specifically for that purpose.

It says everything about Patrick and Kathy. I can’t say enough about how kind these people are. —Susie Nutting, P. Terry’s full-time birthday cake baker

Today, the company has two bakers and a delivery person dedicated to employee birthday cakes.

P. Terry’s fosters a strong culture where employees are valued and respected. In addition, Terry clearly understands that the resources the company dedicates to employees must be created—he recognizes that tough decisions are sometimes necessary, and the business must come first because, without the business, there are no employees. Then, however, the employees are key to growing the business.

“Once you have the team member, the way you keep them, the way we’ve kept them, is that we respect them. …

My wife and I … we know that we can’t do this without them. So the first thing we do is admit that.” —Patrick Terry

In turn, customers must be well taken care of, which is much easier when employees feel valued and feel that they make a difference.

P. Terry’s keeps in mind the importance of making its customers happy and keeping them satisfied. One way to ensure this happens is through a dedicated phone number that customers can text to provide feedback. The feedback is sent to the store manager, the area director, the VP of operations, and Patrick Terry himself.

On top of a traditional customer service—friendly, helpful, and fast service—
P. Terry’s serves its customers by

• providing as healthy an option as burgers and fries can be,

• ensuring consistency in both the product and the way it is offered, and

• maintaining this excellence throughout their now 30+ locations.

Crispy Chicken Burger

Patrick Terry’s vision was of a traditional burger stand, but he and his wife and business partner, Kathy, had also read the book Fast Food Nation, which encouraged them to “do it right” by providing healthy options. This was probably the trickiest part of operating P. Terry’s, especially at the beginning.

Back then, the Terrys had to go to California to find a vendor who could provide hormone-free, antibiotic-free, vegetarian-fed beef. In addition, the company only uses Idaho Burbank potatoes, from which employees remove sugar and cut fresh by hand. The fries were the company’s “biggest challenge,” according to Patrick Terry.

“Most places don’t serve fresh fries, and most places don’t serve Idaho potatoes because they’re seasonal and it’s a very tricky thing on removing sugar, and they sit in a bath all day. I mean the components that go behind that order of French fries that you bought for $1.90 is … just crazy.” —Patrick Terry

In 2024, readers of the Austin American-Statesman voted P. Terry’s fries the best among 30 restaurants in Austin and Central Texas.

Double Cheeseburger, fries, Oreo milkshake

In their quest for healthier food for their burger stand, the Terrys show their dedication to excellence by seeking the best ingredients while keeping prices affordable. Even as they grew and gained more leverage on the price they paid for the ingredients, they still focused on improving the quality of their products rather than directly benefiting from the savings they made. It is reminiscent of Neiman Marcus refusing to compromise on quality during the Great Depression. As Kathy Terry puts it, “We had a vision and we were going to stay true to that vision.”

And this has not always been easy, especially since COVID-19 and when inflation reached historical highs. A year or two ago, when I was handed a takeaway bag at one of their drive-thrus, a little note was included explaining that they had no choice but to make a small increase to their menu prices due to inflation. I sincerely felt for the company—we were all going through inflation—and I appreciated the note explaining why I would be paying slightly more starting that day.

I don’t take anyone’s business for granted. —Patrick Terry

Similarly, about 15 years ago, P. Terry’s handed out a note to customers about the fries, explaining that the potatoes did not meet their standard, so if customers weren’t satisfied, they’d reimburse the fries. Clear communication with customers is an essential part of the service P. Terry’s delivers.

P. Terry’s is associated with quality and fresh products at an affordable price (just like quality was for Neiman Marcus). Patrick Terry, who doesn’t hesitate to call himself a capitalist, offers this excellence based on his beliefs, focus on service, and business acumen—this is part of the brand and benefits both “the mothership” and employees.

P. Terry’s drive-thrus and dining rooms also feature an open kitchen, allowing customers to see their meal as it is being prepared. Everything is made to order, which means there’s the constant challenge of balancing quality with quick service. P. Terry’s is, after all, a fast food restaurant.

Patrick Terry is concerned that growth could erode the burger stand’s successful culture and decrease quality. This is one reason why P. Terry’s is not a franchise chain, and the opening of additional restaurants was previously limited to the Austin area but is now slowly expanding into Houston and San Antonio.

“We’re control freaks. I don’t think we could give the control up. We just feel like it runs better if it’s under the company umbrella.” —Patrick Terry

Lakeway location

Limiting the growth allows the Terrys to have more control over the culture and the quality of the products and service they offer. Similar to Herbert and Carrie Marcus, Patrick Terry cannot be at two locations at the same time, which is why it was good that the second restaurant opened not too far away from the first one.

“My greatest nightmare is to have someone say to me ‘Oh I remember when you used to be good.’” —Patrick Terry

After all, P. Terry’s Burger Stand was founded in Austin and retains some of the city’s uniqueness. Patrick Terry intentionally started there because he believes it is the best place to open a restaurant: “I think there’s a consciousness in this city that is like no other.”

What makes Austin particularly special, according to the Terrys, is the sense of community that is found there. And they credit their early success to a supportive community:

“I’ve always said that if you have to start a business … South Austin may be the most special place in Texas, maybe on earth. I mean, when we were at Lamar and Barton Springs … we really couldn’t believe people kept coming back when we first opened because we really didn’t know what we were doing.” —Patrick Terry

The Terrys demonstrate great humility, regularly claiming that they were not skilled at what they were doing when they first started. But they did not give up. Patrick Terry may take failures and setbacks personally, but after reflecting and seeking solutions, he refuses to carry those failures and setbacks with him and instead moves forward.

Terry analyzes the situation, problem, or setback, figures out a plan, and then goes for it: “You take a leap of faith … at one point that’s all you can do.” Still, he always seeks where he and the business can improve: “I’m never ever quite satisfied. I think it’s how I keep things going, in constantly trying to improve.”

Doing everything, maintaining standards, and constantly aiming to offer higher quality and improve certainly demonstrate a growth mindset.

Lakeway location

Community and Giving Back

For the Terrys, it was impossible not to thank the Austin community that supported them from the beginning, a community they credit with their success. And indeed, the Terrys have made giving back a core value of their business.

It just resonated with the people of Austin. —Patrick Terry

Four times a year, the restaurant selects a Saturday—its busiest day of the week—and donates all the profits from that day to local charities. In 20 years, P. Terry’s has given back more than $2 million. Charities that receive the donations have to use the money “entirely [for] the immediate needs of the local communities [P. Terry’s] serve[s] – Austin and San Antonio.”

Another way for the burger stand to support the communities it operates in is Spirit Nights: “For qualifying schools and school-related organizations that are looking to raise money, P. Terry’s will donate 10% of sales made from 4-10pm (excluding third-party online sales) on the day of the event at the host location.”

In an episode of the Austin360 podcast, Kathy Terry explains how this stems from the support they received when they first started:

“Like Patrick has said so many times, when we first started, we were making so many mistakes and people kept coming back and we were like, oh my gosh, we have to give back ourselves because the community was so supportive.” —Kathy Terry

And every occasion they can give back, they do. While Kerrville and Kerr County were the most impacted by the recent flood in Central Texas, so was Travis County (where Austin is) as well. The majority of the flooding happened on July 4, on the eve of P. Terry’s 20th anniversary. Two days after their anniversary, P. Terry’s announced that, on July 10, the company would donate all profits from that day from all of its locations to Austin Disaster Relief.

What happened on July 10 is not only a testament to Texans’ kindness and generosity, but also to P. Terry’s enormous success and reputation: Hundreds of people lined up and waited patiently, sometimes forming lines that circled entire blocks, to participate and help support relief efforts.

Commenting on the post in which Patrick Terry explained how Texans showed up that day, a reader wrote:

“I waited 2 hours in line and I have no regrets, it was beautiful to see all the people lined up and waiting. God Bless Texas.”

P. Terry’s ran out of food in some locations and had to close early. They were able to donate $150,000.

p_terrys

A post shared by @p_terrys

Conclusion

We can recognize the values and virtues we reviewed in the burger stand’s operating principles, which can be found on the company’s website:

- We do the right thing

- We assume positive intent

- We have each other’s back

- We are transparent & timely with our communication

- We understand and respect each other’s roles

- We think big but act small.

I’m a big fan of P. Terry’s. For me, it all started with the taste. When I first tried the burger stand many years ago, I noticed that the ingredients looked and tasted extremely fresh, unlike those at some other burger chains. Plus, their burgers were a standard size and not expensive.

If you look closely, the information is available at the restaurants and on their packaging. It is noticeable, though, that P. Terry’s does not invest a lot of money in marketing and advertising, as they prefer to focus on a good company culture and the quality of what they sell. The Terrys credit their growth to word of mouth; the Austin community, they say, has always been there to support them. The Austin community had their back from the beginning.

Word of mouth led me to try P. Terry’s. The taste and quality convinced me to become a customer.

Like all Texas stories of achievement, P. Terry’s pursued clear values and achieved them through distinct virtues—all of which we continue to see in Texas business stories.

Patrick and Kathy Terry successfully recreated, in Austin, a piece of Americana that was dear to Patrick Terry’s and, I’m sure, many Texans’ hearts, while adding an Austinite touch.

Our goal has always been for you to love us. It’s never been for you to like us.
—Patrick Terry

Happy 20th Anniversary, P. Terry’s, and thank you! Here’s to many more years of serving Texans fresh burgers, fries, and shakes!

Sources

^†From Top Business Leaders Show podcast episode (2023).

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