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Checkers, Rally's CEO on jumping into the driver's seat in a firestorm

Just about three weeks after veteran restaurant industry leader, Frances Allen, took the reins at Checkers and Rally's, the biggest crisis to hit the industry in recent history slammed into the QSR sector. Here, she describes what it's been like and how she maintains perspective about what really matters in her role as the chain's CEO.

QSR leadership is a challenge at any time, but especially now, and especially for a new CEO at an 800-location fast food chain (photo: iStock).

April 2, 2020

Checkers & Rally's CEO Frances Allen (photo provided).

Any quick-service CEO would probably relay that — even in so-called "normal" business conditions — their role is not one for the faint of heart. But, the past several weeks in the U.S. have been anything but "normal" for  QSRs and leading one of these systems through the minefield that is the COVID-19 pandemic could easily be compared to a bucking bronco ride for the women and men at the top of these brands. 

This firestorm is more or less what recently named Checkers and Rally's CEO Frances Allen is walking directly into, just three weeks after she assumed the chief executive's post at the fast food chain. However, Allen is not a neophyte in the limited-service world, having most recently led Boston Market, as its CEO, following a stint as president at Jack in the Box and previous serving as CMO and and other leadership roles at Denny's, Dunkin' USA, Sony Ericsson Mobile Communications, Pepsi and Frito-Lay. 

In short, she is well-weathered in the ups-and-downs of quick-service and has the kind of steely backbone needed to run the Checkers and Rally's brands through the proverbial gauntlet of restaurant issues during the COVID-19 pandemic. That's the strong impression this website's editor took away from the following Q&A this week with Allen about starting a new role leading the QSR, just as everything "hit the fan" for the U.S. restaurant business.

Q: How long were you moved into the C-suite at Checkers and Rally's before the business and other restrictions imposed by the pandemic really went into effect?

A: "I had been in my role at Checkers for three weeks, when I realized we needed to go into crisis planning mode," she said in in a question-and-answer session with this website. "There's nothing like a crisis to get a leadership team focused on what matters most, and we have been hyper-focused on communicating as transparently and frequently as possible with each other, our employees and our franchisees to address the latest developments of the coronavirus pandemic, to ensure the safety of our employees and our guests, to create solutions, to comply with the latest local mandates and to minimize the negative impact to our business."

Q: What are the specific opportunities and challenges of being in a situation where you are literally jumping into the fire of this pandemic situation as a leader of brands like Checkers and Rally's?

A: "We are very fortunate, in that we rolled out an extremely comprehensive and franchisee-friendly delivery platform around this time last year. Our delivery program offers delivery services across all major providers including DoorDash, UberEats and others, which has prepared us for the increase in delivery orders. 

"In addition, while many other chains are suffering due to dine-in closures, we are able to continue operating our stores as the vast majority of our restaurants are drive-thru only. 

"From a personal perspective, I have had the great pleasure, as a new leader, to watch a team truly come together and perform through this crisis. I have been impressed every day with the large number of people in our organization, who have gone above and beyond, and particularly with our general managers and crew who show great spirit and show up to work every day." 

Q: So, as you mentioned, both Checkers in the Southeast and Northeast and Rally's in the Midwest and California, are very drive-thru-centric QSRs. How has that both helped and maybe hurt the brands amidst the COVID-19 pandemic?
 
A: "Our mostly drive-thru only restaurants have been a huge advantage to us during this time. We have been able to continue operating our stores without having to worry about losing a large aspect of our business, as so many other brands have to deal with dine-in closures."

Q: How is the brand being hit sales-wise since you started. Please also share any specific data about transactions that you can regarding traffic as the pandemic-related restrictions have taken hold? 

A:"Despite our advantages with drive-thru, take-out and delivery readiness, our traffic is still down considerably. People's lives have been turned upside down and their routines changed.  

"Where we are the hardest hit is at late night, as people practice social distancing and mandatory stay-at-home orders. Our margins are low, so like everyone, we are concerned most about cash flow.  

Checkers drive-thru-centered service model has been a plus as pandemic restrictions have taken effect. (Photo: provided)

"Crises bring out the best and worst in people, and I am proud to say that, for the most part, our vendors and landlords are being true partners. Additionally, we are grateful to the Government and the National Restaurant Association for ensuring that the CARES Phase 3 Bill is specially designed to help the restaurant business get much-needed cash flow support and help us keep as many of the 15 million people working in the industry, paid."   

Q: How in this very frenzied, constantly changing environment does a chief executive like yourself maintain balance and perspective, as well as a forward-looking mentality?

A:"My role and responsibility at Checkers and Rally's is to lead calmly, decisively -- creating clarity and a sense of urgency (not panic). I understand that we can only control what we can control within this crazy time.  Equally important is for me to stay mentally healthy so I find time each day to exercise and enjoy downtime with my husband."   

Q: What are your employees biggest concerns and how are you addressing those?

A: "Our employees are worried (about) staying healthy and staying employed. Our number one priority from the outset has been keeping our employees safe (along with our guests) and keeping our restaurants open.  

"We do benefit from closed kitchens and no dining rooms, which minimizes the contact between guests and employees already. And, in addition, we have rolled out enhanced safety measures. 

"Even this week, we will add new procedures that move us as close to "contactless" as we can be. Staying open is our No. 2 priority, so we can keep all our team members employed, which is the goal. 

"There is no doubt this is the biggest business and health crisis any of us have experienced in our lifetime, and everyone is nervous or uncertain about the future. To this end, it is incumbent on me to make sure our team members are given as much information as often as we can. Communication is 'King' right now."

Q: Is there anything you'd like to tell the fellow restaurateurs who read our website daily about as you dive into this new role?

A: "Our brand is a working-class brand. We are family serving family, and we operate in predominantly low-income areas. 

"As well as navigating through this crisis ourselves, as a brand we have done what we can to support kids who do not know where their next meal is coming from, through a wonderful organization called No Kid Hungry. 

"In addition, I am incredibly proud of the acts of kindness being shown by some of our franchisees who have shown their love and support for their communities by offering free food to kids, emergency workers, police and hospital workers."  

Editor's note: Checkers and Rally's have approximately 900 locations in 28 states which specialize in burgers, fries and shakes, typically in drive-thru-oriented model. The company is based in Tampa, Florida.

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