Carl's Jr eyes Aussie expansion after master franchise setback
The brand has five new restaurants set to open in the next 18 months.
United States-based fast-food chain, Carl’s Jr. plans to expand its footprint in Australia by opening five new franchised restaurants over the next 12 to 18 months after the collapse of their master franchisee last year.
“The headlines suggested the Carl’s Jr. brand was leaving Australia, which was incorrect,” Gaven Needham, General Manager Asia Pacific at Carl’s Jr.’s parent company, CKE Restaurant Holdings, Inc., told QSR Media. “It was one franchise group who encountered difficulties, and we stepped in to maintain operations in as many restaurants as possible.”
In July 2024, CJ’s QSR Group Pty Ltd. (CJQSR), Carl’s Jr.’s Australian master franchisee, went into voluntary administration, impacting 24 restaurants it directly owned. Twenty-five restaurants, operated by sub-franchisees, remained open.
Carl’s Jr. engaged suppliers, landlords, and franchisees to ensure continued business operations and minimise disruptions. Some existing and a few new franchisees acquired several of the affected restaurants, bringing the total operational outlets to 29, with more location openings planned throughout 2025.
Customers remain loyal to the brand, former staff were eager to return, operations quickly stabilised and the company adopted a direct franchise model, Needham said.
“We have restaurants that closed as part of the voluntary administration, but then quickly reopened under new ownership,” he said. “We had staff jumping at the opportunity to come back and work at our restaurants and local customers excited for Carl’s Jr. to be a key part of their local communities again. This has reinforced our confidence in the brand and our commitment to the Australian market.”
The move away from a master franchisee model in favour of direct franchising mirrors CKE’s operations in markets including the United States and Canada.
“We’re not actively looking for a new master franchisee,” Needham said. “Instead, we have built a dedicated team based in Melbourne to directly support our franchisees and drive growth.”
The newly established Australian team is comprised of three key operational leads who work closely with local franchisees as well as the global team at Carl’s Jr.’s headquarters in Franklin, Tennessee in the US.
Carl’s Jr. is expanding, with five new restaurants under development and is expected to open in the next 12 to 18 months, Needham said.
CKE is also exploring smaller, more optimised restaurant formats that will thrive in smaller trade zones, a strategy that has worked in Asian markets, he added.
“In some parts of Asia, we operate in spaces under 100 square meters, which has proven successful, and we think we have opportunities for similar models in Australia,” he said.
Value proposition
The Australian QSR burger market is highly competitive, with long-established players such as McDonald’s and Hungry Jack’s, both of which have operated in the country for more than five decades.
McDonald’s leads with 1,031 restaurants, whilst Hungry Jack’s operates 459 outlets, according to a 2023 GapMaps report. More recently, Wendy’s opened its first restaurant in Australia and is targeting to launch 200 more by 2034.
Needham believes Carl’s Jr. has a unique value proposition. “, We offer a quality product that’s not like every other chain and we remain committed to delivering our differentiated experience of quality, innovation and flavour,” he said.
Carl’s Jr.’s advantages include freshly cooked chargrilled burgers, hand-breaded chicken tenders, free soft drink refills in restaurant, and hand-scooped ice cream milkshakes, all served with personalised table service — something not commonly found in quick-service restaurants, he pointed out.
Carl’s Jr. is also responding to evolving consumer preferences, particularly the rising demand for chicken-based products, with Australians consuming more chicken each year. “While we will always remain primarily a beef burger brand, we recognise the growing popularity of chicken and will continue to enhance our offerings to meet this demand.”
On the technology front, Carl’s Jr. is working with information technology partners to enhance their mobile ordering app, including a white-label delivery pilot that seeks to improve customer convenience and boost sales.
“We’ve learned that the brand is loved in Australia, and we’re dedicated to supporting our franchisees, expanding our footprint, and continuing to offer the Carl’s Jr. experience to our loyal customers,” Needham said.
