RISE - Menu Monitor

Rally's Hamburgers
Headquarters
4300 W. Cyprus St. Sutie 600, Tampa, Florida 33607 USA
Tel: (813)283-7000 Fax: (813)283-7001
www.checkers.com
Ownership: Private
Segment: Limited Service Hamburger
System Characteristics 2006 2005 2004
U.S. Systemwide Sales ($000) 285,000 280,500 270,000
Company-owned ($000) 80,000 80,500 85,000
Franchised ($000) 205,000 200,000 185,000
U.S. Number of Units 361 354 368
Company-owned 93 95 100
Franchised 268 259 268
International Sales ($000) - - -
International Units - - -
Average Sales/Unit ($000) 800 775 720
Concept Positioning |
Rally’s Hamburgers is a chain of limited-service hamburger restaurants. The menu features all-American fare specializing in
hamburgers and fries. Checkers Drive-In Restaurants, Inc. is the parent company of Rally’s. Rally’s operates the nation’s
largest chain of double drive-thru restaurants. Rally’s operates approximately 25% of its units; the remaining stores are
franchised. Rally’s restaurants are located in the Midwest and on the West Coast.
Stores are designed to operate as freestanding buildings and are located in a variety of sites, including urban, suburban and
rural areas. Stores do not have interior dining rooms, but the exterior features its signature colors of red and white with neon
signage. The double drive-thru concept permits simultaneous service of two cars from opposite sides of the same building,
with an objective of guest service within 45 seconds of arrival at the window. Service is also provided through walk-up
windows. Stores are less than one-quarter the size of typical chains and require approximately one-half the land area. In
temperate climates, the standard building design requires about 760–980 sq. ft.; in colder climates an enclosed vestibule
surrounds the walk-up window area and requires an additional 120 sq. ft. of space. Most units have a patio for outdoor dining;
the space features canopy tables and chairs as well as landscaped surroundings.
Rally’s was founded in 1984 in Clearwater, Fl. and reorganized in 1989 as Rally’s, Inc. A public stock offering was issued
August 1989. Several small acquisitions have been made; operating units involved have all been converted to the Rally’s
concept. Early in 1999, a stock swap merger with Checkers Drive-In Restaurants was announced. The merger was complete
in 1999 with the corporate entity known as Checkers Drive-In Restaurants, Inc. The company is in the midst of a rebranding
program in several markets, converting Rally’s units into Checkers Drive-Thru units. In 2006, Checkers merged with Taxi
Holding Corp. for $172 million dollars in cash and the assumption of an undisclosed amount in debt. The company has not
disclosed any expansion plans.
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