Pledging to re-energize the Rally’s brand, SETLA, LLC, an affiliate of ALTES, LLC, today announced that it has acquired 60 Rally’s Hamburgers® restaurants in the Cleveland, Dayton and Columbus areas for $5.1 million.
The new ALTES/SETLA ownership is committed to rejuvenating the Rally’s brand by restoring Rally’s original value proposition of serving quality food at a great value.
The purchase from Snapp’s restaurants brings ALTES/SETLA’s total ownership of Rally’s locations to 110 stores, making it the largest franchisee in the Rally’s/Checkers system. In addition to the purchase of 60 Ohio-based Rally’s locations, ALTES/SETLA has acquired the rights to develop an additional 12 restaurants.
“We are very pleased with our decision to acquire all of the Rally’s Hamburgers restaurants throughout the Cleveland, Columbus and Dayton areas,” said Mr. Robert Alrod, Chief Executive Officer of ALTES, LLC and SETLA, LLC. Mr. Alrod continued: “The Rally’s brand is built on a solid foundation. With our purchase of these stores, we at ALTES/SETLA are committed to focusing upon Rally’s original value proposition. We will use our entrepreneurial management platform to revitalize the franchise by offering high quality meals at a better value, with faster and friendlier service.”
The acquisition was financed by internally generated capital, and approximately $3.8 million was financed through GE Capital. The external funding reflected the lender’s belief in the ALTES/SETLA group’s management expertise and the strength of the Checkers/Rally’s brand name.
Mr. Daniel J. Dorsch, Chief Executive Officer and President of Checkers Drive-in Restaurants, Inc. commented: “I am very pleased that ALTES/SETLA has chosen to expand its ownership of Rally’s restaurants to include the Ohio market. ALTES/SETLA has already successfully turned around other Rally’s markets. They have a team that is committed to the growth of new store development and excellence in operations. We look forward to working with their team on this new acquisition.”
“At ALTES/SETLA, we are committed to delivering Rally’s core value proposition of quality, value, courtesy and speed through each of our 110 stores’ double drive-thru lanes,” said Mr. Lenny Levitsky, Chief Operating Officer of ALTES/SETLA, who has more than 30 years’ experience in the food service industry. “Our management team is dedicated to being an effective and enthusiastic franchisee in the Rally’s/Checkers system.”
In addition to the 60 Rally’s locations just acquired in Ohio, ALTES/SETLA owns 50 Rally’s restaurants throughout St. Louis, Virginia Beach, and Little Rock. All of the acquired Rally’s locations are part of the Checkers® Drive-in Restaurants, Inc.’s franchise community.
Mr. Steve Fox, Vice President of Operations for ALTES/SETLA, is based in Cleveland, allowing for close monitoring of the new acquisition. Mr. Fox is a more than 20-year veteran of the quick service food industry, including eight years spent as Regional Manager for a Rally’s franchisee in Ohio and an additional two-plus years as a Franchise Business Consultant with the Rally’s/Checkers franchiser group.
ALTES/SETLA, privately held, is headquartered in Boca Raton, Florida. Under its leadership, the company’s Rally’s locations in St. Louis, Virginia Beach, and Little Rock have experienced improved operations and have achieved positive comparative sales increases throughout the chain in just 16 months since its acquisition.
This acquisition has placed ALTES/SETLA among the 60 largest quick service franchisees in terms of unit holders and approximately 70th in sales among the top 200 quick service restaurant operators.