Checker's and Rally's CEO on 'Not Missing a Beat'

the CEO of Checkers and Rally's Drive in restaurants. She joins us on the phone from Colorado, and it's notable in part because this is a relatively new job for she hasn't even been able to show up to her office yet. We're told that's in Tampa. The quarantine obviously has thrown everything into all sorts of flux. So Francis, first of all, how are you, what's going on with you? I'm well, thank you Jason and Carol, and thank you

for having me on. It is a bizarre situation where you started a new role and four weeks later there's a world's a nation lockdown. So I at least have visited the office. I have done my restaurant training, UM, but the majority of time I have been in Colorado, and I would say that, UM, huge compliment to add teams that you know, we've really not missed the beat working remotely, and I think a lot of companies are finding them. So you, like us, are working from home. UM,

tell us about not missing a beat. What does that meant for the company, UH in terms of the type of demand that you've seen, and what does it meant for your employees to make sure that you're keeping them safe as well as keeping your customers safe. Yeah, it's it's really been so rewarding to UH to work through this crisis with a with such a dedicated and resilient team of people. There's always a silver lining rate and in every crisis, and I think you know, usually it

brings out the best of people. And I can certainly say that that's true for the Checkers and Raleigh's whole organization. UM. From AH, I'll start with the safety. Obviously, when when we put a tassbolts together to create a response plan, we had two priorities. The first priority was the safety of our guests and their employees, and the second was really to keep our restaurants open so we can continue

to employee our team members and feed our guests. So UM incredibly proud of the of the operations team we actually as as well as complying with all of the CDC mandates both individual, state and local government requirements, we've actually put in fifteen new contact lists experiences to protect our employees and I guess everything from UM plexigous areas at the window those UM, UM sorry, I just need to have my phone's got brin UM cashiers with color

coded gloves for handling payments, UM praise for handling payments, infrared thermometers obviously. Fortunately we already did fifteen minute hand washing, so UM you know, we already had a very high standard of cleanliness. UM you know, cup refills with always refilled people's cups. But now we'll still do that, but

we'll give you a fresh cup. So a ton of new UM procedures at the restaurant sanitation obviously to keep people safe, on people and labor um you know, obviously at this priority as the employees who show up for work every day, and I'm so proud of them and what they've done and how they kept going We're fortunate in that we have not had to lay off anybody. We did follow some people at this corporate office, but

we're able to bring them back after thirty days. But we've been looking after our team members with sickly with closure pay if if the restaurant has to close, and we've also instigated a thank you pay for those restaurant team members that that have UM stayed with us through throughout the best Virus UM. I'm very proud to say

we also have a an employee relief fund. It was actually established in fire thousands five, following the days of Hurricane Katrina, and has provided more than five hundred thousand dollars and assistance to about six hundred employees and their families. And we've expanded that to UM to obviously include anybody

that can't work due to Corona related issues. So a lot of a lot of work put together to for our people, UM, keep our guests and our employees safe, and then of course all the marketing ship up that that we need to need it to make, so shifting really into free delivery, meal bundles, UM, social media and UH and just trying to stay very nimble and flexible, right well, and I do wonder, you know, Francis, as

we are, you know, starting to see some reopenings. There are there any sort of trends that you're seeing in terms of traffic or in in terms of consumer behavior that that you're picking up as you look at the different regions that you serve at this moment. Yes, um, so um. You know what's what's really interesting for our businesses,

We've we've kind of had this roller coaster experience. So in the early weeks of the pandemic, we were down double digits like many people, uh, everybody really in ah, in our industry and left you're in the piece of business and um. And that was really driven by the curfews, the shutdowns and the and especially lower sales at late night. But from about the middle of April we saw that start to come back, and for the last several weeks

we've actually been up double digits. So imagine that swing going from you know, down about to up about the same. So um, but we think, yeah, we we think it's a it's a number of things. Um, it's the the majority of our restaurants drive through only, so we have closed kitchens and have been able to really drive that contactless experience. UM. We really have lead heavily into delivery. We launched a comprehensive delivery business last year. UM, and

we've accelerated our efforts to promote order ahead. Combined with that, we had a really well timed values of focused promotion. We're going to continue our conversation still with us as Francis Allen. She was named CE of Checkers and Rally's Drive In Restaurants in February of this year. She was also see a Boston market president of Jack in the Box. She's held senior positions at Denny's, Duncan Donuts, USA, and a lot more. She's with us on the phone from Colorado.

You know, you have such an incredible background, Francis, in terms of the different restaurants and brands that you've you know, worked with. How do you think this industry changes longer

term as a result of COVID nineteen. Yeah, it's a great question, Carol, and UM, I think what we're going to see and we've seen it a little bit already with soft casual coming in and blurring the lines between Q I saw in in casual dining, and I think we're just going to see that even more so, we're gonna see casual dining restaurants looking for doing copes I pick up and you know, trying to get us close to the whole drive through model as as I think

it's it's ease of all for them to get. I think we're going to continue to see consumers who are really quite concerned about a dining in and so there definitely will be a move more towards delivery and and take out. We're going to see an acceleration of, um that digital engagement with brands as people try and order ahead. And I think, sadly, UM, you know, the industry has been overstored for some time, and that's meant that there

has been a very very anemic traffic growth. UM. Sadly, I think we're going to see about twenty percent of units. I mean, who knows, it's a it's a guest at this point, but um, we've already had a lot of permanent closures. So that's gonna actually, I think be good for the industry as a whole because it's actually create more more traffic growth than and more energy. So, UM, I see, I see lots of changes. Does that does apply to you? Guys as well that cut back potentially.

I know, um, we we closed um up to fifty restaurants out of nine hundred. If they were ones that were primarily in more locations, or or they or they had dining rooms, Um, most of those will reopen. It's it's more the you know, the people that just weren't able to generate revenue during during this time. And I think some of the hardest hit are actually going to be the fine dining restaurants, because if you think about

fine dining, it's all about the business traveler. And I don't see the business traveler really returning on mass the way that we have been operating up to now. I see business changing a lot over over becoming a couple of years now. I think you're exactly right. I mean, listen,

we've had a number of those chefs on the program. Uh. And you know, we're talking about some of the best restaurants in the world, not the least of which is eleven Madison Park, And you know they're chef and owner Daniel Whome has has basically said he doesn't know if if that restaurant is going to reopen. That's a really

interesting uh. And and salient point about business travel. I do wonder, you know, Francis, at a time when we all are and and I am a huge fan of every place that you have ever worked, as I uh as I laid out in the intro. But but I do wonder, from your perspective, knowing what you know about menus and and and health concerns and health trends and all that, how does your menu change going forward? What are people going to be angling for, especially as they

get back out in the world a little bit. Well, I I actually think people are going to lean into comfort suit. I think that they're really familiar to them and value so that puts us in a great position with that prize. Jason, I'm delighted that you're you're a fan. Um. I'd like it to be your adult diet as well as your teenage diet. You know, there's nothing like a Checkers and Valley Spride actually make, you know, make the day seem a lot better. I couldn't agree more so.

So I think we're going to see that. And you know, frankly, I think the people that were really into healthier food or organic or sustainable sustainability before there's h they're going to continue afterwards. Um, but I think for most people it's going to be a return to comfort food and

comfort brand um and value um and uh. And you know, I think I think really looking at simplifying, So we'll probably see a lot of many simplification over the coming I get to say, France, as I see some loaded fries in Jason Kelly's future, I'm just gonna say, um, yeah, know I you know, we do have to ask you. I think before we leave. We've just got about a minute left. You know. Obviously we've been focused on the virus and how your world comes back, but you know

what happened in Minneapolis and what we've seen there. UM, I am curious. How is a company you can help facilitate change. It's a great question, and I first want to express my deepest condolences to the family of George George Floyd. I also want to share that Checkers and RALEI support the black community and we've always been proud

to be a part of the communities we serve. And I believe that being a part of a community means standing by each other in good times and in challenging time, so together we can work for real change and to that in what we'll be doing as an organization is taking a close look at how we can be more supportive of our neighborhoods than our communities in the future.

All Right, well, best of luck to you and uh I hope to see you on the other side of this and UH share some fries and from a socially distant and safe perspective, for instance, Allen, thank you so much, CEO of Checkers and Rallies drive in restaurants,