Carl’s Jr. is a widely recognized brand in the U.S., but it may come as a surprise to hear that this American burger institution is just as profilic beyond its North American roots. In fact, back in May, CKE Restaurants Holdings, Inc., the parent company of Carl’s Jr. and Hardee’s, opened its 1,000th international site in Madrid, Spain.
But the brand is far from finished. It has a European portfolio that spans countries such as Russia, Spain, and France – and soon, through master franchise and multiunit deals, the brand plans to penetrate the U.K. and Germany, too.
“The U.K. has always been a target market for us. It’s a great opportunity to develop the market,” says Tim Lowther, general manager EMEA for Carl’s Jr. “We go where the opportunities have been, and where the brand most resonates with our guests. Having doubled our international footprint in the last six years, we now see Carl’s Jr. as the rising star in the QSR world. We’re really poised for the next chapter in our growth.
“We’re cognizant of how consumer behavior has evolved as a result of COVID-19, and we want our food and restaurants to be accessible”
“I think the opportunity now in the U.K. and in Germany is that we’ve established a base in Europe; historically, many U.S. brands come to the U.K., open one restaurant, and claim that they’re in Europe. We’re doing something slightly different. We have 80-plus restaurants in Europe already, and we’ve got a solid team in the region across all key functions – supply chain, operations, development, training – so we’ve now done our learnings, and opened strong markets across Spain, Denmark, Russia, and Turkey. We’re ready to use that experience to push into the U.K. and Germany.”
The benefit of experience
Carl’s Jr. is in an interesting position internationally. On the one hand, the brand has been in operation in the States for upward of 80 years. Globally, however, Lowther is approaching development from a fresh perspective.
“The beauty of Carl’s Jr. is that we’re an 80-year-old company. I joke that in Europe, we’re an 80-year-old start-up, so we get the benefit of the 80 years of experience in the markets that we’re in,” he says. “We have a great depth and breadth of marketing strategy knowledge globally, but equally, it’s important that we don’t come in as an American company trying to tell everybody how to do it.
“We listen closely to our franchisees, form fantastic partnerships with all of our partners, and we’ll develop local strategies with them built around a core international theme that keeps us consistent around the world.”
Of course, expansion isn’t impactful if quality isn’t prioritized alongside growth. And Carl’s Jr. certainly has big growth plans: over the next five years, it plans to double its current international footprint of 1,000 locations. So how will Lowther and the rest of the leadership team ensure that the experience had at a new U.K. site is up to par with one in Spain or Russia?
“It goes back to the 80-year-old start-up idea. We’ve got teams of people both in the U.S. and in Europe who are laser-focused on delivering that consistency in each of our markets. We’ve got a proven track record of maintaining consistency while driving our expansion. As we entered the EMEA markets and grew our brand presence to over 40 global markets, we’re intent on making sure that our brand remains consistent.”
Changing the status quo
A huge trend in the food and beverage franchise market nowadays – particularly in light of COVID-19 and a shift toward off-premise dining – is brands focusing on delivering beloved menu items in brand-new, untapped ways. Dunkin’, for example, has announced plans to prioritize non-traditional locations such as univerisities, airports, and travel plazas.
Burger rival Wendy’s, meanwhile, announced in August that 30 per cent of all future locations would be non-traditional. In the Philippines, the brand even runs a drive-thru only location.
So how will Carl’s Jr. incorporate these trends into its future development plans, as the brand continues to grow throughout Europe?
“Our bold new restaurant designs are planned out for impact and efficiency. We’re cognizant of how consumer behavior has evolved as a result of COVID-19, and we want our food and restaurants to be accessible,” explains Lowther. “I think we have a great omnichannel design for our restaurants that we’re rolling out around the world, and that incorporates delivery, drive-thru, and click-and-collect.”
Don’t be mistaken, however: there’s still certainly a place for in-person dining within Carl’s Jr.’s future plans. Lowther continues, “My personal feeling on the restaurant industry, and I’ve worked in the burger world for 35 years, is that there’ll always be a place for people to enjoy hospitality. Hospitality, by its very name, is something that people go to, to enjoy with their friends.
“The rise of delivery and click-and collect is an important component that we can’t ignore. We need to ensure with our design teams that we’re incorporating these in. But the dine-in experience is something that will always have a place and is incredibly important to our guests.
“We keep hearing about the roaring 20s once COVID has passed through, and I think in the next five to 10 years we’ll certainly see innovative ways to order your food. But people will continue to enjoy the experience of going into our restaurants for many years to come.”
