Many franchisees in states like California are dealing with soaring labor costs driving them to seek fresh opportunities in neighboring western states. Faced with wage hikes, supply chain disruptions, high interest rates, and escalating property costs, staying competitive has become increasingly difficult.
To address these challenges, franchisees are exploring expansion in neighboring states, like Arizona and Nevada. These regions can offer new growth opportunities, and a chance to innovate operationally and develop outside of a state that is overly costly.
Checkers and Rally’s, led by new CEO Chris Tebben, is seizing the chance to expand into Arizona and Nevada where opportunities are more favorable to the quick-service business model. “Once we developed a few locations in Arizona and Nevada, it brought additional franchise development interest, as the new restaurants were performing a level above current location volumes,” says Eileen Himber, senior manager of franchise development marketing and recruitment at Checkers and Rally’s.
With hundreds of units nationwide, Checkers and Rally’s has established itself within the quick-service restaurant space, focusing its expansion within the 26 states where it already has a presence. Checkers and Rally’s has always pushed for innovation in the quick-service industry, it initially set itself apart early on by being the inventor of the double drive-thru.
Over the years, the brand has evolved significantly, placing a strong emphasis on innovation and technology. This includes advancements like AI-powered ordering systems and the ongoing reimage program, which has modernized its locations to enhance customer experience and operational efficiency.
Experience working with multi-unit franchisees plays a pivotal role in Checkers and Rally’s successful expansion into regions like Arizona and Nevada. “We identified Arizona and Nevada as underserved, making this an attractive opportunity for a motivated franchisee with the ability to own the territory,” Himber says. By leveraging strong relationships with experienced franchisees, Checkers and Rally’s can strategically develop new locations in these fresh markets, ensuring long-term success and sustainability in areas with untapped potential.
To succeed in these markets it’s paramount that franchise operators are provided with support for growth. Checkers and Rally’s provides comprehensive operational support for new franchise locations before and after opening to aid in long-term success. Prior to launching a new location, franchisees work closely with a real estate manager to identify demographically desirable sites, as well as a construction manager to assist with the bidding process and build out up until opening.
Additionally, each franchisee is assigned a franchise business consultant to guide them through operations and strategy, along with a new restaurant opening marketing manager to help drive initial customer engagement. Even after opening, this robust support system continues, providing franchisees with the tools and expertise needed to thrive in this market.
The decision to expand into Arizona and Nevada is a strategic move that positions Checkers and Rally’s franchisees for success in underserved markets primed for expansion. By moving away from saturated and costly markets like California, franchisees turn to Checkers and Rally’s to take advantage of growth opportunities in states with more favorable economic conditions, and ample room for growth.
To learn more about franchise opportunities and Checkers and Rally’s visit their website.
Abby Winterburn