The Franchise Burger War – Hardee’s, Carl’s and McDonald’s




Wall Street Journal:

quotation.jpgThe burger wars are heating up, with the Hardee’s and Carl’s Jr. chains taking aim at McDonald’s Corp. with a taste challenge and an attack on Big Mac.Burger Franchise

In September, Hardee’s and Carl’s Jr. restaurants will offer mail-in refunds to customers who claim to like a McDonald’s Angus burger better than a Carl’s Jr. Six Dollar Angus Burger (which actually costs $3.99) or a $3.49 Hardee’s Angus Thickburger.

Andrew Puzder, chief executive of CKE Restaurants Inc., the parent of both Hardee’s and Carl’s Jr., said in an interview that McDonald’s national rollout last month of $3.99 Angus burgers “gave us the perfect opportunity” to change a perception among consumers that burgers at Carl’s Jr. and Hardee’s cost more than those at McDonald’s.

Moreover, feeling that the McDonald’s Angus burger was a copycat of CKE’s Angus burgers, Carl’s Jr. on Wednesday is introducing the Big Carl, to go up against the Big Mac.

The Big Carl contains seven ounces of beef, compared to the Big Mac’s 3.2 ounces, and costs $2.49, about 50 cents less than a Big Mac, depending on the city.

“After they so blatantly copied our burgers, we felt it was fair play,” Mr. Puzder said.

McDonald’s has been posting strong growth during the recession, with same-store sales at its U.S. outlets up 2.6% in July. McDonald’s said the Angus burger contributed positively to its July sales figures.

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