QSR Magazine: Checkers & Rally's Is Winning the Value War

Value is the name of the game again in the franchise QSR industry, as the turnaround of the economy has led to increased competition between brands hoping to steal market share from a more willing-to-spend consumer base. But the definition of value has evolved.

As QSR Magazine reported in their March issue, no longer is it simply a cheaper price, but brands are finding ways to combine price point with quality both in product and experience.

“They’re visiting a [quick serve] almost every single day. So to stand out and compete and win, you have to offer great value,” Jennifer Durham, chief development officer and SVP of Checkers & Rally's told QSR. “And value is relative, because it’s about what you get for the money. It’s not just the lowest price.”

The rapidly growing brand with more than 800 locations has built a successful brand by finding the line between low-cost and high-flavor with their "Value at Every Price" menu and with items like their $1.99 Montreal Steak Burger, which includes a burger with shaved steak, Swiss cheese, crispy onions, and McCormick's Grill Mates Montreal Steak Seasoning.

“I think $2 may be the next $1,” Durham added to QSR. “As prices rise, I think $2 has become that sexy price point.”

Checkers & Rally’s is currently targeting Miami, Los Angeles, Houston, Washington D.C., Baltimore and Philadelphia for franchise development. Startup costs for new franchisees include a $30,000 fee per restaurant. The total estimated initial investment ranges from $155,400 to $1,286,743. According to Item 19 of the 2015 Franchise Disclosure Document (FDD), average net sales for the 52 week period ending December 29, 2014 are $1,103,866 for Checkers and $1,222,266 for Rally's

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