What were the restaurant labor costs for Checkersrallys for the period January 3, 2022?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
545,165 | Total stockholder's equity (deficit) | | 95,295 | | (81,092) | | | Total liabilities and stockholder's equity (deficit) | $ | 460,717 | $ | 545,165 | See accompanying notes to consolidated financial statements
CHECKERS DRIVE—IN RESTAURANTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
| For the Periods Ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| Janua | 2023 through ry 1, 2024 ccessor) | 202: June | January 3, 2023 through June 16, 2023 (Predecessor) | ary 2, 2023 edecessor) | ary 3, 2022 | |||
| Revenues: | ||||||||
| Restaurant sales | $ | 141,217 | $ | 130,191 | $ | 278,541 | $ | 291,447 |
| Franchise and retail royalty revenue | 18,608 | 15,385 | 30,149 | 29,613 | ||||
| Franchise fees and other income | 5,317 | 4,061 | 9,685 | 10,964 | ||||
| Total Revenues | 165,142 | 149,637 | 318,375 | 332,024 | ||||
| Costs and expenses: | ||||||||
| Restaurant food and paper costs | 45,102 | 41,194 | 91,396 | 86,774 | ||||
| Restaurant labor costs | 44,446 | 38,348 | 86,874 | 88,361 | ||||
| Restaurant occupancy costs | 11,778 | 11,145 | 23,097 | 28,432 | ||||
| Restaurant depreciation | 2,524 | 7,529 | 13,084 | 13,838 | ||||
| Other restaurant operating expenses | 20,357 | 17,423 | 39,597 | 38,570 | ||||
| General and administrative expenses | 19,435 | 36,471 | 35,999 | 39,668 | ||||
| Franchise support and service expenses | 3,634 | 1,696 | 6,447 | 5,088 | ||||
| Advertising expense | 8,077 | 6,810 | 14,825 | 15,464 | ||||
| Other depreciation and amortization | 2,093 | 900 | 1,542 | 1,583 | ||||
| Restaurant retirement costs | 300 | 596 | 305 | 531 | ||||
| Impairment of long-lived assets | 623 | 66,633 | 4,763 | - | ||||
| Net loss on disposal of fixed assets | 670 | 839 | 606 | 1,301 | ||||
| Net loss on sales of restaurants | 38 | 238 | ||||||
| Total costs and expenses | 159,039 | 2. | 229,584 | 318,773 | 3 | 319,610 | ||
| Operating income (loss) | 6,103 | (79,947) | (398) | 12,414 | ||||
| Other income (expense) | ||||||||
| Interest income | 1 | - | 1 | (E) | ||||
| Interest expense | (8,134) | (18,326) | (26,203) | (22,887) | ||||
| Other income (expense) | :=: | (375) | 24 | 201 | ||||
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, restaurant labor costs for the period ending January 3, 2022, were $88,361. This figure represents the expenses Checkersrallys incurred for employee wages, salaries, and related costs at its company-operated restaurants during that fiscal year. It is important to note that this data reflects the performance of company-operated restaurants and may not be directly indicative of the costs a franchisee might experience. Factors such as location, local wage rates, staffing models, and operational efficiency can significantly influence a franchisee's labor expenses.
Understanding restaurant labor costs is crucial for prospective Checkersrallys franchisees because labor is typically one of the most significant operating expenses in the food service industry. Efficient labor management, including scheduling, training, and employee retention, can directly impact profitability. Franchisees need to carefully analyze their local market conditions and develop strategies to control labor costs while maintaining service quality.
It is also important to consider that these costs are from a specific period and may not reflect current economic conditions or changes in minimum wage laws. A prospective franchisee should conduct thorough due diligence, including reviewing the complete financial statements in the FDD and consulting with existing franchisees, to gain a comprehensive understanding of potential labor costs and strategies for effective labor management within the Checkersrallys system.