4 Lessons Learned: How Checkers & Rally’s Got Its Groove Back

Since its founding in 1985, Checkers* & Rally’s has been a significant player in the burger segment. Now, on the heels of its redesigned modular restaurant openings and the purchase by private equity firm, Oak Hill Capital, in March of 2017, Checkers & Rally’s is hitting the ground running in 2018. The drive-thru franchise has a goal of opening 1,200 units by 2020, a milestone set by the brand’s CEO, Rick Silva. When we interviewed the brand about its strategy for success and its growth record, the answer was clearly laid out – the franchisees behind the brand are making a big difference.

1851 Franchise Magazine connected with Checkers & Rally’s Senior Vice President Chief Development Officer, Jennifer Durham, and franchisee, Farida Dellawalla, to hear more about how the brand has built an employee foundation that has translated into growth and positioned the brand in the QSR burger segment.

1. Move People Forward

“Our organization is a nimble group, in that our folks have come from a variety of different roles and career paths,” said Durham. “Because the brand has been growing, we value employees that have a passion for the brand and are able to take existing skills and transfer them into different areas.”

Durham elaborated how there is a bigger internal push for existing employees to bring their tried and tested skills to new areas of expertise, such as a someone transferring from a role in Training and Supply to Operations and IT.

“Employees that have been with us in various roles have a better understanding for the business that translate well into new roles,” said Durham.

2. Bring People in from the Outside When Necessary

While moving people forward is extremely important when it comes to growth, it’s necessary to have a balance between existing employees and outside employees.

“If everyone on a team is internal, you wouldn’t get a fresh perspective. Having a nice blend of new and old on the team creates good diversity,” said Durham.

Durham went on to describe an ice cream program that was in place fifteen years ago which included scooped ice cream. The product line did not see the success the brand predicted and was terminated shortly after. In 2011, the brand tried again armed with a fresh new outlook for its Cold Creations line. The team behind the new product was stacked with those that were around during the scooped ice cream roll-out, but also included fresh faces with new ideas of how the product might work better. The lessons learned worked for the brand, and the Cold Creations line addition is part of the core menu today.

“Understanding your past and adapting it, but having the courage to try new things are key to keep a concept fresh,” said Durham. “There’s nothing better than having history on the team to onboard to new employees.”

3. Provide Incentives

It’s no surprise that incentives keep things fresh in the work place. Every year, Checkers & Rally’s honors its system’s top performers through its esteemed President’s Club. Franchisees and managers accumulate score cards with data on sales growth, guest feedback, speed of service, and store openings and reimages. Those that land in the top 10 percent are invited into the club. Beyond the recognition that comes with being inducted in the President’s Club – franchisees and employees are invited on an all-expenses-paid cruise to celebrate accomplishments.

“There are incentives for both the franchisees and managers in each location,” explained Dellawalla, who has been with the brand for 10 years. “I’ve been going on the cruise for the last five or six years and have been to places throughout Europe and the Caribbean. The managers in my locations are constantly checking the score card to see where they fall – it brings a great competitive nature to the workplace that makes everyone involved in day to day operations strive to do better.”

Dellawalla has landed in the top 10 ranking for the past few years, with one of her stores falling in second place last year, and a goal set in place to be the leader this year.

4. Establish a Franchise Family

After Hurricane Katrina tore through New Orleans, Checkers & Rally’s developed a new employee initiative titled CARE. The brand’s system of franchisees wanted to do something to help fellow employees that were displaced after the storm. Knowing that there is a plethora of other things, like an unexpected hurricane, that can happen in a business, Checkers & Rally’s developed a fund to make sure that employees have a place to turn if their lives are turned upside down.

In 2017 alone, the brand raised $70,000 for the CARE fund, more than tripling its capabilities in helping franchisees get back on their feet.

“Being a part of Checkers & Rally’s, you are a part of the family,” said Durham. “We are so excited to be able to give more as the program gains more traction.”