On his first day in the fast-food business, Carl N. Karcher took in $14.75. In fiscal year 2007, his namesake CKE Restaurants, Inc. earned revenues of approximately $1.5 billion. The story of CKE Restaurants, and its flagship Carl’s Jr.® restaurant chain, is the quintessential American success story. What began as one man’s entrepreneurial venture in 1941 has evolved into one of the most powerful entities in the quick-service restaurant industry. |
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It all began in Los Angeles when an Ohio farmer’s son named Carl Karcher was rising before the sun each day to deliver baked goods. Seeing how well business was doing at one of his stops – a hot dog cart at the corner of Florence and Central – Carl and his wife, Margaret, made a leap of faith and borrowed $311 on their Plymouth automobile and added $15 in savings to purchase the business. From their newly purchased cart, they sold hot dogs, chili dogs and tamales for a dime, and soda for a nickel. Within a few years, Carl and Margaret owned and operated four hot dog stands in Los Angeles. In 1945, the Karchers moved the short distance to Anaheim and opened their first full-service restaurant, Carl’s Drive-In Barbeque. A year later, hamburgers were added to the menu for the first time. |
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Business boomed in the postwar years as more Americans came to California to soak up the sunshine. In 1956, Carl expanded his business by opening the first two Carl’s Jr.® restaurants in Anaheim and nearby Brea. They were so named because they were junior versions of Carl’s original drive-in restaurant. Carl used an innovative system for serving guests. Customers paid for their orders when they were placed, and by the time they had put away their wallets, their food was nearly ready. It was the beginning of a long tradition of Carl’s Jr. “firsts” in the quick-service restaurant industry.
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Within a decade, Carl was operating 24 restaurants, with a fast-growing reputation for quality food and great service. The company incorporated in 1966 as Carl Karcher Enterprises, Inc.
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By 1975, there were more than 100 Carl’s Jr. locations in Southern California and the company expanded into the northern part of the state. Carl’s Jr. celebrated its success by building its Anaheim corporate headquarters in 1976. The following year, it became the first quick-service chain to offer salad bars in all 200 locations. In 1977, a new 149,000-square-foot distribution facility was erected adjacent to the administrative offices. The first out-of-state restaurant opened in Las Vegas in 1979. By the end of the decade, sales exceeded the $100 million mark. |
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In 1980, the company hired its 10,000th employee, doubling its employee count in just three years. Brothers Carl and Don Karcher were the winning team at the top, serving as chairman of the board, and president and chief operating officer, respectively. In 1981, with 300 restaurants in operation, Carl Karcher Enterprises became a publicly held company. The following year, the first Carl’s Jr. in Arizona opened for business. In 1984, Carl’s Jr. was franchised for the first time.
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Following Don Karcher’s untimely death in 1992, a new management team was installed in 1994, headed by CEO William P. Foley II and President and Chief Operating Officer Tom Thompson. Carl Karcher Enterprises became a wholly-owned subsidiary of CKE Restaurants, Inc. (CKE). A revitalization plan was established that included a major remodeling/image enhancement program, along with a dual branding effort with Green Burrito®; an innovative partnership first envisioned by Carl, who was by now CKE’s chairman emeritus.
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CKE underwent a significant financial restructuring in 2001. This was followed by a multi-year, multi-staged strategy to re-invent the Hardee’s brand and re-establish its relevance in the quick-service restaurant industry. Hardee’s strategy has included quality, service and cleanliness initiatives, and a new menu and marketing strategy. The Hardee’s “Revolution,” introduced in early 2003, centered around Hardee’s 1/3- , 1/2- and 2/3-pound Angus beef Thickburgers™.
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In July 2010, CKE Restaurants was acquired by Columbia Lake Acquisition Holdings, Inc., an affiliate of Apollo Management VII, L.P. This new phase allows CKE to continue to grow and succeed as a privately-held company under the ownership of Apollo. The management team and day-to-day operations remained the same.
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