What was the total amount of Checkersrallys restaurant food and paper costs as of January 1, 2024?
Checkersrallys 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 Checkersrallys's 2025 Franchise Disclosure Document, as of January 1, 2024, restaurant food and paper costs totaled $45,102. This figure represents the expenses Checkersrallys incurred for food and paper products used in its restaurant operations up to that date.
For a prospective franchisee, this number provides a benchmark for understanding a significant component of the operating expenses. Food and paper costs are directly tied to sales volume; higher sales typically result in increased food and paper expenses. Therefore, franchisees need to carefully manage inventory, minimize waste, and negotiate favorable terms with suppliers to maintain profitability.
Understanding this cost is crucial for budgeting and financial planning. Franchisees should analyze this figure in conjunction with restaurant sales and other operating costs to project potential earnings and ensure efficient resource allocation. Monitoring these costs regularly will help franchisees identify trends, implement cost-saving measures, and optimize their restaurant's financial performance.