Operations

Checkers gets $20M ch-ching from private equity owners

Photo: File

January 11, 2021

Checkers Drive-In Restaurants Inc., the parent company of Checkers & Rally's drive-thru restaurants, said it has received a $20 million capital injection from its owner and private equity firm, Oak Hill Capital Partners IV. The money will fund an aggressive five-year growth plan.

"Checkers has demonstrated strong performance period after period, despite the significant challenges brought by the events of 2020," Peter Armstrong, principal of Oak Hill, said in the release. "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 & Rally's operating model, which features closed kitchens, double drive-thrus and a dedicated e-commerce pick up lane, has garnered franchising interest, resulting in 40 approved franchisees in 2020 and 72 locations in the development pipeline.

"I am tremendously proud of the work accomplished by our Checkers & 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," Frances Allen, Checkers Drive-In Restaurants, Inc. president and CEO, said in the release.

Allen will relay details of the company's growth plan later this week, the release said. Oak Hill approved the capital injection following the company's successful debt amendment efforts at the end of last year.

Based in Tampa, Florida, Checkers Drive-In includes 836 restaurants Checkers and Rally's restaurants.

Based in NYC, Oak Hill Capital is a private equity firm managing funds with over $16 billion of initial capital commitments and co-investments since inception.