Checkers and Rally's
Fast food burger chain known for drive-thru only locations and seasoned fries.
PE-OWNED
Acquired by Sentinel Capital Partners2017-01-23
What Made It Great
Double drive-thru concept with bold flavors and efficient urban fast food service
What PE Will Likely Do
Portion sizes for menu items like burgers, fries, and shakes will gradually be reduced while maintaining or increasing prices
Cheaper, lower-quality ingredients will be substituted for traditional fresh toppings, sauces, and seasonings, resulting in a noticeable decline in food quality and flavor
Franchisee fees and requirements will be increased, leading to some franchise locations closing down or cutting staff and service levels
Menu variety will be reduced, with the focus shifting to higher-margin items like beverages and sides rather than the signature burgers and fries
Staffing in kitchens and at customer service will be minimized, leading to longer wait times and less attentive service
Expected Timeline
“0 to 6 months months”
Minor changes to menu pricing and some ingredient substitutions begin, but are not yet noticeable to regular customers
“6 to 12 months months”
Portion sizes start to visibly shrink, and customers begin to notice a decline in food quality and flavor
“12 to 24 months months”
Significant menu changes, including removal of signature items, become apparent, and customer complaints about declining service and longer wait times increase
“24 to 36 months months”
Store closures accelerate as franchisees struggle with higher fees and declining customer traffic, further damaging the brand's reputation
“36+ months months”
Potential bankruptcy or sale of the brand to another operator as the once-iconic Checkers and Rally's concept becomes unrecognizable to its customer base
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Be alert for changes to your favorite menu items at Checkers and Rally's, such as smaller portions or noticeable differences in taste and quality
Watch for any reduction in service levels, such as longer wait times or less attentive staff, as the company tries to cut costs
Consider seeking out alternative fast food options that prioritize quality and customer experience if the Checkers and Rally's brand becomes unrecognizable
Alternatives
Publicly traded restaurant group
Support local businesses in your area