Checkers Drive-In Restaurants is looking to ramp up its expansion.
The parent company of Checkers & Rally's drive-thru restaurants has received a $20 million capital injection from Oak Hill Capital Partners IV, owner of the drive-thru concept. The capital will be used to fund Checkers & Rally's aggressive five-year growth plan.
Checkers, whose operating model includes closed kitchens, double drive-thrus and a dedicated e-commerce pick up lane, currently has 836 locations. It has 72 new locations in the development pipeline.
"Checkers has demonstrated strong performance period after period despite the significant challenges brought by the events of 2020," said Peter Armstrong, principal of Oak Hill. "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.”
Oak Hill approved the capital injection following the company's successful debt amendment efforts at the end of last year.