If you need assistance, please call 480-365-8346

Rally’s burger chain looks to expand in Phoenix area

Wednesday, October 21, 2020   /   by Juan Grimaldo

Rally’s burger chain looks to expand in Phoenix area

Screen Shot 2020-10-21 at 11.04.31 AM.png

After a transformative year, hamburger drive-thru chain Rally’s has significantly increased sales and is looking for a major expansion in the Valley.

During the summer of 2019, all three Valley Rally’s locations abruptly closed after the relationship between Tampa, Florida-based Checkers & Rally’s Restaurants Inc. and the former Rally’s franchise in Phoenix soured. In the fall of 2019, Rally’s brought in Bruce Ong, a successful franchisee from San Diego, to run the market.

“Since Bruce took over, those restaurants are up 350%,” said Robert Bhagwandat, Rally’s director of franchise development. “He has done a phenomenal job.”

Not only has Ong been able to increase sales, his success has attracted new franchisees to the concept, Bhagwandat said.

At the same time Ong came on, there was another franchisee looking to move into the Valley as well. Now, Rally’s has a total of four local owners looking at sites to expand and open multiple locations.

Rally's franchisee Bruce Ong and the staff of the 1345 W. Camelback Road Rally's in October 2019 soon after the location reopened.

“If the stars align, there could be two or three more locations in Phoenix open by the end of 2021, Bhagwandat said.

Then after that, the current slate of franchisees have the ability to open three to five a year, he said. With each location employing about 25 people, that is around 75 to 125 jobs created a year.

Uses a small footprint

But Bhagwandat said Rally’s thinks the Valley could handle even more, and is actively looking for additional franchisees. In the coming years, Bhagwandat said the Valley could see up to 60 new locations.

While the restaurant industry has been hit hard during the Covid-19 pandemic, Rally’s has fared pretty well. The company operated almost entirely on drive-thru business before the pandemic and since then, it has embraced online ordering and third-party delivery systems, Bhagwandat said.

There was an initial bump earlier this year to a lot of quick-serve restaurants, especially when the enhanced unemployment benefits were given out.

“After the federal subsidies started to run out in July, we continued to grow while a lot of the QSR world leveled out,” Bhagwandat said. “Most of that growth is coming from e-commerce platforms.”

Success during Covid-19 is only one of the selling points Bhagwandat has made to potential franchisees. He said the company requires a pretty small footprint — an 1,100-square-foot building that is prefabricated in California in four pieces and then put together on site. It can fit on half an acre, giving Rally’s owners more options and usually at a cheaper price point.

According to the Checker’s and Rally’s website, franchisees are required to have a net worth of at least $750,000 and the initial investment can cost between $254,000 and $1,431,000.

Keller Williams Realty Elite- The Grimaldo Group
Juan Grimaldo
2403 N Pebble Creek Pkwy #101
Goodyear, AZ 85395

© 2021 Arizona Regional Multiple Listing Service, All rights reserved. The data relating to real estate for sale on this website comes in part from the Arizona Regional Multiple Listing Service. Real estate listings held by brokerage firms other than Juan Grimaldo - Keller Williams Realty Professional Partners - The Grimaldo Group (WINBACK) are marked with the Arizona Regional Multiple Listing Service logo and detailed information about them includes the name of the listing brokers. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor Arizona Regional Multiple Listing Service shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. February 25, 2021
This site powered by CINC: www.cincpro.com