Checkers Gets $20 Million in Capital Injection
Checkers Drive-In Restaurants, the parent company of Checkers and Rally’s drive-thru restaurants, has received a $20 million capital injection from Oak Hill Capital Partners IV, a private equity firm. Tampa-based Checkers Drive-In Restaurants said the injection of capital will be used to fund aggressive five-year growth plans for Checkers and Rally’s.
“Checkers has demonstrated strong performance period after period despite the significant challenges brought by the events of 2020,” said Peter Armstrong, principal of Oak Hill. “Company and franchised restaurants recorded high single-digit same-store sales gains in 2020 and that momentum is continuing into the first weeks of 2021 because of the strategic marketing and operations plans rolled out before the pandemic, which were enhanced by the demand for contactless drive-thru and delivery experiences. We have great confidence in the Checkers management team, and we are pleased to support them in their plans for the future.”
Checkers Drive-In Restaurants said that Checkers and Rally’s operating models — with closed kitchens, double drive-thrus and a dedicated e-commerce pick-up lane — has garnered interest from the quick-service restaurant franchising community. The brand approved 40 new franchisees in 2020 and has 72 new locations in the development pipeline.
“I am tremendously proud of the work accomplished by our Checkers and Rally’s family last year, including our management team, our restaurant support center, our franchisees and operators, and especially our hardworking general managers and crew members who showed up every day despite the challenges of COVID-19 to serve our guests and our communities,” said Frances Allen, president and CEO of Checkers Drive-In Restaurants.
Checkers Drive-In Restaurants operates 836 restaurants across the U.S.