What was the total amount of restaurant labor costs for Checkers restaurants in 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | January 1, 2024 | June 16, 2023 | |||
|---|---|---|---|---|---|
| Revenues | |||||
| Restaurant sales | $ 255,474 | $ 141,217 | $ 130,191 | ||
| Franchise and retail royalty revenue | 35,389 | 18,608 | 15,385 | ||
| Franchise fees and other income | 9,518 | 5,317 | 4,061 | ||
| Total revenues | 300,381 | 165,142 | 149,637 | ||
| Costs and expenses | |||||
| Restaurant food and paper costs | 81,660 | 45,102 | 41,194 | ||
| Restaurant labor costs | 79,230 | 44,446 | 38,348 | ||
| Restaurant occupancy costs | 22,378 | 11,778 | 11,145 | ||
| Restaurant depreciation | 5,871 | 2,524 | 7,529 | ||
| Other restaurant operating expenses | 34,053 | 20,357 | 17,423 | ||
| General and administrative expenses | 39,215 | 19,435 | 36,471 | ||
| Franchise support and service expenses | 5,226 | 3,634 | 1,696 | ||
| Advertising expense | 14,397 | 8,077 | 6,810 | ||
| Other depreciation and amortization | 3,441 | 2,093 | 900 | ||
| Restaurant retirement costs | 139 | 300 | 596 | ||
| Impairment of long-lived assets | 2,384 | 623 | 66,633 | ||
| Net loss on disposal of fixed assets | 64 | 670 | 839 | ||
| Total costs and expenses | 288,058 | 159,039 | 229,584 | ||
| Operating income (loss) | 12,323 | 6,103 | (79,947) | ||
| Other income (expense) | |||||
| Interest expense | (15,789) | (8,134) | (18,326) | ||
| Other income (expense) | 3 | 1 | (375) | ||
| Total other (expense) income | (15,786) | (8,133) | (18,701) | ||
| Loss before income tax expense (benefit) | (3,463) | (2,030) | (98,648) | ||
| Income tax expense (benefit) | (24,723) | 540 | (7,542) | ||
| Net income (loss) | $ 21,260 | $ (2,570) | $ (91,106) |
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the total restaurant labor costs for Checkers restaurants in 2024 amounted to $79,230. This figure represents a significant expense category for the restaurants, highlighting the importance of efficient labor management for franchisees. Understanding and controlling these costs is crucial for maintaining profitability.
For a prospective Checkers franchisee, this number provides a benchmark for evaluating their own potential labor expenses. Factors influencing labor costs include staffing levels, wage rates, employee training, and operational efficiency. Franchisees should carefully analyze these factors and implement strategies to optimize labor productivity and minimize costs.
It's also important to note that this figure represents an aggregate number. Individual restaurant labor costs may vary depending on location, sales volume, and other factors. Therefore, prospective franchisees should conduct thorough due diligence and develop realistic projections for their specific circumstances. Comparing this figure with industry averages and the performance of similar Checkers restaurants can provide valuable insights for financial planning and operational decision-making.