A privately held company based in Franklin, Tennessee in the US, CKE Restaurants Holdings, Inc. owns, operates and franchises Carl’s Jr. and Hardee’s, two beloved regional brands that are known for their one-of-a-kind premium innovative menu items. Here, RLI sits down with Michael Woida, President, International at CKE Restaurants Holdings to learn more about the history of the business and what the future holds.
The two brands, Carl’s Jr. and Hardee’s came together in 1997 with Hardee’s acquisition by CKE Restaurants, Inc. in a move that leverages both companies’ heritage and their regional dominance. Today they continue to operate under one corporate entity under their individual banners and between them they have close to 4,000 franchised or company-operated restaurants in 44 US states and 40 international countries.
“Being the brand owner of two somewhat similar brands, we’ve strategically designed our expansion efforts for Hardee’s to operate and grow in the Middle East and Africa (MEA), primarily due to our strong, 40-year presence in the region,” Michael Woida, President, International at CKE Restaurants Holdings says. “Carl’s Jr. restaurants will continue to grow exclusively in markets outside of MEA. We finished 2021 with about 1,020 restaurants operating outside of the US, and we intend to double that number over the next five years.”
Given that the last two years have been some of the most difficult in the history of the hospitality sector, the company has not had to fundamentally alter its key objectives and growth efforts. They have reassessed how to optimise their guests’ access to their great food and have accelerated and inaugurated many initiatives that were either already in motion or under design.
When discussing how the business has been steered through Covid-19, Woida cannot stress enough how crucial the right international franchise support leaders and teams have been throughout. He goes on to say it is these people that are the backbone and have ensured their franchisees have had the resources and sounding boards to talk through and help solve the myriad of unique problems that have arisen because of the pandemic.
The global portfolio of CKE Restaurants Holdings, Inc. encompasses a wide-ranging mix of building typologies that can accommodate almost any venue. These sites range from 700sq m freestanding buildings that incorporate multi-lane drive-thrus, to 45sq m Carl’s Jr. Express concepts that operate in dense, urban areas.
Some notable additions to the portfolio recently include the opening at Terminal 2D of the Charles de Gaulle Airport in Paris. Perfectly positioned in the landside of the airport, it has ample seating, boasts a Carl’s Jr. Café concept, incorporates plenty of self-order kiosks and has multiple flight status boards installed throughout the dining space. Meanwhile late last year the company launched the ‘OMNI’ Hardee’s prototype in Dubai. This concept restaurant has been designed to test the multitude of guest experience channels that CKE feel will be critical as they begin to become more innovative with how they can optimise how guests access their great food. From the learnings through this Dubai outlet, they’ve designed a first-generation Carl’s Jr. OMNI facility that will be deployed in Australia and New Zealand this year.
“In the coming months, we will continue to elevate and utilise the additional service channels that have expanded as a result of the pandemic, whilst continuing to play ‘catch-up’ on our digital and loyalty programs where we are slightly behind the curve. We are also working hard to enhance and optimise our approach to our social and digital marketing executions and our international branding efforts,” says Woida.
When talking about unit expansion, it becomes clear that Europe is a primary focus, with the UK and Germany being key markets for the franchise and development teams. Outside of Europe, they are looking to grow in sub-Saharan and South Africa, Oceania and Brazil.
Internationally known for its excellent product innovation, CKE houses a dedicated culinary team in its headquarters near Nashville, Tennessee that work tirelessly in a fully equipped Culinary Center that serves as a centre for ideation and concept testing. This allows them to constantly develop new products and recipes that consolidate their market position. They also back this up by keeping a close eye on culinary trends around the world, whether these be inside or outside the quick-service restaurant (QSR) space for inspiration.
When discussing sustainability, a major watchword in the retail and hospitality sector, Woida explains that this continues to be top-of-mind as they seek to make their operations more efficient and their footprint on the environment smaller. “We have much more work that we need to accomplish and it starts with eco-friendly and efficient equipment. The innovation and costs in this area have not yet caught up with the need, especially for effective food packaging that needs to travel but we’re working hard to seek and test innovation in these areas.”
Although CKE strive to offer a premium product and guest experience, they are still operating squarely in the QSR space where they strive to remain accessible to their target consumer, offer a price-value that enables frequency and loyalty.
“The culture within CKE and its leadership is one of service, family and a strong work ethic. With the deep 80-year heritage that exists in both of our brands, we operate from an experience base that not many other concepts can claim,” says Woida.
As he looks towards the future and what might be in store for the company, Michael comments that being ready for anything is really the key. “Assuming the pandemic wanes and we apply what we’ve learned; our team needs to continue to innovate as our guests’ behaviour changes. We need to remain focused on the consumer and continue evolving in order to be relevant to ours guests in this very diverse world.”
