r/fastfood • u/normankrasnerkc • 2d ago
News Struggling Carls Jr. franchisee plans to close 10 and sell 49 California locations
https://www.latimes.com/business/story/2026-05-30/struggling-carls-jr-franchisee-plans-to-close-10-sell-49-california-locations82
u/Tac0Supreme 2d ago
The original Six Dollar Burger was once a premium fast food burger that you’d want to splurge and pay $6 (it didn’t even initially cost that, it was $4) for when other fast food burgers were much cheaper. Now a $6 burger is almost a bargain.
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u/aimlesstrevler 2d ago
The idea was that it was a $4 version a burger that would cost $6 in a full service restaurant.
Could you imagine paying $6 for any entree in a full service restaurant these days?
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u/xSir- 1d ago
What blows my mind is the burgers at fast food places are now the same cost or more expensive than at full service establishments.
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u/FourteenthMonth 1d ago
It's cheaper to get a BEER with your full size sit down cheeseburger at almost any bar or happy hour place than it is to go to a fucking McDonald's.
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u/trenchanttrench 1d ago
It’s because we prefer fast food, there’s a high demand for it so they can charge high prices
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u/Dull-And-Witless-Boy 1d ago
Greed is antithetical to Buddhism. Stop preaching it. You need to put your phone down, and tend your garden, buddy.
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u/jackanape7 1d ago
3 for me at Chili's is the closest you'll get
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u/RottingApples25 11h ago
It’s a shame Chilis is so bland it still doesn’t feel worth it. It’s the white bread of chain restaurants.
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u/Drawing_The_Line 2d ago
Turns out the idea to go all-in on greed, charging $5 for sodas and upwards of $20 for combo meals wasn’t the business savvy move they thought it was going to be. I for one am shocked that these empty, graveyard Carl’s Jr locations are being forced into bankruptcy.
But sure, blame the minimum wage for the closures, surely every other fast food restaurant is also closing too, right? Oh, they’re not? Shocker.
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u/Gold_Repair_3557 2d ago
This place was one of the most expensive fast food joints around long before that minimum wage increase.
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u/Same_Mood_8543 2d ago
Remember when the six dollar burger was marketed as being worth what a sit down burger cost for only $4? Fun times.
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u/Born_Cap4085 2d ago
I worked there back then. Carl's hasn't changed a ton but the quality has gone down while prices are breathtaking at times.
I live in Pasadena and the one on Colorado is extremely hit or miss. You can tell the kitchen don't GAF half the time.
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u/oyasumi_juli 1d ago
I love CJ's, they make some of my favorite fast food burgers, but it is really expensive so I only get it like a couple times a year. The GOOD Carl's Jr by me in Orange County just shut down, even though they were super consistent and they were by the freeway, so I would have assumed they'd be getting good traffic.
No, instead the only one left by me is run by really obnoxious employees/management that have a bad attitude all the time and are regularly out of shit like ranch and honey mustard.
Sucks too seeing the brand where it's at now. I remember when I was a kid and my mom was still able to eat things like cheeseburgers, Carl's was her favorite burger.
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u/error_accessing_user 1d ago
That burger was *fire* until they cost reduced the shit out of it.
I know it's going to cost $12 now, but I would love to have one.
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u/OP-Trrbo 2d ago
I dunno about that, “6 dollar burger” was a great deal considering the portion and quality (for fast food) at the time. Add zucchini fries and a drink… hits the spot
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u/trevordbs 2d ago
Carls has gone done hill it’s pretty bad.
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u/Difficult_Memory_101 2d ago
It used to be pretty good quality food now it’s pretty close to Jack in the box quality
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u/trevordbs 2d ago
Don’t hate on those tacos
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u/Take_Some_Soma 2d ago
That’s the only good thing on their menu.
Burger is pathetic. Microwaveable burgers look better than JITB burgers.
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u/Grumpy-Fwog 1d ago
I think your location just sucks them lol jack has been consistently mediocre to bad all across the west, haven’t had bad with carls yet
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u/DJC_Kowalski 2d ago
Yeah, people used to charge less for sodas because they cost almost nothing. The cups cost more than the soda. Now it's supposed to be a huge source of profit I guess, but at $5 they are easy to skip. Why pay for an expensive combo if the item by itself is a much better deal?
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u/Radio_Randy 2d ago
Read the news...several businesses are closing and moving out of California.
And yes, the minimum wage increases are hurting everyone.
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u/bananajr6000 1d ago
Tell that to fast food restaurants in Europe that pay significantly higher wages and have the same or lower prices
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u/BigWeek4231 1d ago
They are forced to increase prices after sales start to decline, not the other way around.
But how else can you demonize fast food restaurants for not giving greasy reddit users 50 bucks worth of food for 10 dollars.
More economic incompetence by the people who have never run a business on le reddit. Shocker.
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u/BoltActionRifleman 2d ago
That’s nuts. There’s a Hardee’s about 20 minutes from me where you can get 2 double cheeseburgers, fries and a drink for a little over $8.00. These are the “classic” Hardee’s burgers though, not the large ones.
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2d ago
[deleted]
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u/PainStraight4524 2d ago
CA most likely
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u/Born_Cap4085 2d ago
Yeah CA. Though i think they are exaggerating. A Famous Star combo starts at $15.39 so not exaggerating much. Damn.
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u/Wamsutta8 2d ago
They got way too expensive. I got two burgers recently at the cost of $15.
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u/Santa_Hates_You 2d ago
Remember the $6 burger poking fun at Chilis and Applebees? Now those restaurants are somehow cheaper than a Big Carl meal.
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u/KWash0222 2d ago
RIP the old spicy chicken sandwich combo. That shit got me through high school and college
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u/Pennypacker-00 2d ago
Two burgers for $15 is kinda cheap compared to the Carl's by me. It's ridiculous. The only thing I'll buy is the local $8.99 combo special.
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u/Grumpy-Fwog 1d ago
A single whopper is 7.59, single jumbo jack is 6.29 (these are rather small too) Cali xl is bigger with 2 patties for 6$….. I think the industry as a whole is just expensive but Carls isn’t the problem
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u/Wamsutta8 1d ago edited 1d ago
It depends on the location. A single whopper by me is $5.99 while the Cali Xl across the street is $7.99.
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u/ImNotTheBossOfYou 2d ago
You shouldn't own that many franchises. The entire point of a franchise is that it's a small business running THAT location.
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u/EuphoricAd1991 1d ago
If you think this is bad, just wait until the new pricing catches up with McDonald's and you are going to start hearing about some McDonald's franchisees with hundreds of locations each.
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u/shrek3onDVDandBluray 2d ago
Is Carl’s Jr hardees?
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u/BrittaUnfiltered67 2d ago
Same company, they have variations of menu offerings. They merged decades ago.
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u/Jimdandy941 2d ago
Hardee’s ruined Sandy’s, now Carl’s has ruined Hardee’s.
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u/SharksFan4Lifee 2d ago
Hardee's was on its deathbed when Carl's saved it by buying it in the late 90s.
I wish Carl's would have not bought Hardee's at all. Worst corporate mistake Carl's Jr ever made.
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u/Redmandown16 2d ago
I loved the western bacon cheeseburger.
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u/abhorredmisanthrope 1d ago
They are great. I don't like having to take out a small loan to afford one though.
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u/BrittaUnfiltered67 2d ago
I like Carl’s Jr. they were always a higher tier fast food place in comparison to McDonald’s, Wendy’s, Burger King, & Jack in the Box, more on par with Dairy Queen and A&W.
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u/haysus25 2d ago
Remember when 'the six dollar burger' was only $4.95?
Then they changed the name to 'big angus burger'.
Now they don't even acknowledge it and their burgers run $9.50 a pop.
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u/Grumpy-Fwog 1d ago
You can customize a Cali xl and its 6$ base with 2 patties… where the hell you getting 9.50 from?
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u/haysus25 1d ago
Double famous star is $9.99
Double bacon western cheeseburger is $10.39
Double guacamole bacon cheeseburger $12.19.
The Cali XL is specifically marketed and presented as a value burger. Their signature burgers are all, at least, $9.99.
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u/Naive-Government8333 2d ago
Been going to my local Carl’s Jr for over 30 years. I’ve never, ever seen it busy.
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u/gretzky9999 2d ago
What minimum wage in California ?
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u/Nacho_Tools 1d ago
Fast food workers make $20 an hour, Unless they make fresh bread then the law of $20 doesn't apply. (The owner of Panera bread is friends with the governor, and had that caveat put in so he could be exempt) then the minimum for $20 fast food workers goes up in the future.
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u/Not_Real_Batman 2d ago
The one by my house has the double famous star combo for 8.99, which is not bad, but if you order through the app you'll pay full price.
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u/tomandshell 2d ago
The one by my house has combos for $20.49. They need to close if they’re going to do that.
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u/Shiftea24 1d ago
Carl’s Jr has fallen off man and it pains me to see this. I remember when the portobello mushroom SIX DOLLAR burger existed and tastes great.
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u/TrueBlue726 1d ago
I used to adore Carl's Jr.'s BBQ burger, Southwest Chicken burger, and especially their Six Dollar Burger (when it was half that price). In fact, I used to eat there more than at McDonald's. That was over 10 years ago. Ever since they had to change the name of Six Dollar Burger to Thickburger because the price had reached $6 and up, I knew it's time to abandon that place.
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u/Papichuloft 2d ago
Min wage? I don't think so, let's take a look at the money these fuckers at the top get in comparison to min wage workers, especially in other states that have Hardees and much lower min wage than Cali.
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u/AffectionateBad1646 2d ago
$3 wage increase ($16.90 to $20) x 10 workers x 12 hours is $360 a day. X 60 locations = $21600/day x 30 = $648,000 a month.
He said the stores were losing $600k monthly so the math checks out. I think if I were in his position the wage increase would definitely be a significant impact from essentially breakeven to -$600k monthly.
That said, really great businesses like in n out don’t care at all about wage increases because they need skilled workers to handle the insane volume and will pay accordingly for that skill.
However, for mediocre businesses on life support with no innovation or clear sector niche, these expense increases add up and will eventually tilt the business over.
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u/DJC_Kowalski 2d ago edited 2d ago
I'm guessing the burger costs are worse than the labor costs. The national herd is at the lowest level since 1951. Burger costs are through the roof. Even in Texas we have fast food places shutting down, and we still have the federal $7.25 min wage.
However, for most people with big franchisee chains, the real problem is likely interest on the debt. They grew the chain by borrowing money when it was essentially free, and now that interest rates are going up due to inflation and oil prices, they can't service the debt anymore. Now that 30 year treasuries are breaking 5% from record lows under 1% in 2020, some chains with a lot of debt aren't going to survive.
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u/AffectionateBad1646 1d ago
I agree with beef costs and lack of cheap debt as well.
Triple macro pressures (beef, wages, interest rates) and lack of a good micro strategy = bad times
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u/DJC_Kowalski 1d ago
As interest rates continue to rise, I think we are going to see so many bankruptcies. A plan that makes sense with free money makes no sense when you have to pay 8% or whatever.
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u/trader_dennis 39m ago
A $3 raise in minimum wage is closer to $4.50 and hour after paying for employer taxes and workers comp.
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u/MorbidDusk 1d ago
Tbh I'm shocked they're still in business. The prices are absolutely ridiculous. $12 for a famous star combo? Pass
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u/AssistantActive9529 2d ago
It’s also the GLP-1 crowd. they can’t enjoy fast food like they used to. You’re losing that audience now too
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u/Hypocrisydenied 2d ago
For sure. There's a real sea change happening with restaurants because of them.
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u/TheGame81677 2d ago
I made a post a few weeks ago asking how Hardee’s was still in business. We have five in my town and they’re always dead. I know this is Carl Jr,s but it’s the same company right?
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u/geekstone 1d ago
Loved Carls Junior growing up but it's been rough so many locations I have been too throughout the country that have horrendous quality control. Our local one in Southeast Texas closed due to how bad it had gotten.
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u/Mastah_P808 12h ago
Carls is fckn bomb i think its just the convenience thats their biggest problem. My nearest one is like a few miles away.
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u/RottingApples25 11h ago
I love that it’s always blaming minimum wage and not their own greed. A fucking fast food combo shouldn’t cost $12-$16. You make cheap shit, then when you charge the Earth are shocked that no one’s willing to pay it. Personally, my two go-to fast food spots for years were Arby’s and Carls Jr. Then they both practically doubled their prices over the last 10 years. It made it real ready for me to take my money elsewhere.
So good. I’m glad you have to close stores. Serves you right. Hopefully McDonalds and all the others lose money and follow too.
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u/RottingApples25 11h ago
I still remember when the Big Carl came out like 15 years ago, and it was $1.99. I loved it, went and got one all the time. I just looked it up - a SINGLE Big Carl is $7.19 now. And that’s just the burger, not a combo.
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u/Ufgatorhead4u3 2d ago
The California wage requirements, taxes, and regulatory burden make it difficult for businesses to continue to operate. I owned a sub shop in Florida and I can confirm that the profit margin in food service is small. There is only so much that you can pass on to the consumer in way of price increases because they complain about the high prices and stop buying. It makes no sense to raise wages so far that you put the businesses out of business because now all of those employees make $0/hr.
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u/RottingApples25 11h ago
Sure, but Carls was raising their prices well before the minimum wage increases. I get that that definitely factored in, but that’s definitely not the only reason.
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u/KFCFingerLickin_ 2d ago
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u/ChefBowyer 2d ago
No I did that.
Me and everyone else who said no to paying insane prices.
At least McDonald’s has halfway decent deals with their app.
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u/KFCFingerLickin_ 2d ago
Failing economy, new war, tariffs, price hikes… 🤡
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u/ChefBowyer 2d ago
They were failing long before trump.
I’ve talked about carls many times. They don’t have lines for a reason.
You ironically sound like a maga nut.
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u/AmarilloArmadillos 2d ago
Dude comments that meme on basically every post that even mentions price.
Obviously it's true for a lot of things but he's legit just being obnoxious for no reason now..
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u/Opening_Cycle3639 2d ago
To be fair increase in prices is justified as long as wages go up and the economy is in a good place so
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u/International_Lie216 2d ago
Not to mention they fucked with my chicken club. Took a the wheat bun for the trendy and fake as hell “brioche” bun. I hope Carls goes away just like Pioneer Chicken. But I loved Pioneer.
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u/Snoo-64644 2d ago
Growing up in California Carl. Jr was the platinum first food compared to others. It was a treat to go there vs other fast food. But since 2000 it has lost that completely. Used to love their grilled chicken mushroom sweese cheese. It sucked when they discontinued that. In texas as few as they have their bun is terrible.
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u/AwsiDooger 1d ago
I agree. Carl's Jr. was great when it needed to be. I was in college in Los Angeles during the '80s and several days per week we would walk to the Carl's Jr. on Figueroa. That indeed felt like a huge treat. I would often see college coaches and professors eating there.
The chain may have fallen off subsequently. No matter. I'll always associate it with fond memories from decades ago.
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u/Formal_Discipline_12 1d ago
Lower prices. Bring back commercials. Stop getting rid of the menu items we love
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u/Significant-Dog-8166 2d ago
They went for convoluted overprocessed crap in mid-2000's with their Paris Hilton era, then they never updated their image. The food is like a Hummer H2. No one wants that crap anymore. Shake Shack shows the way - simple good ingredients, good burger flavor themes, good fries, good premium drinks, still affordable.
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u/VendettaKarma 2d ago
Anything but lower prices and compete on value and volume. Literally anything.
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u/Bustavius_Insidicus 1d ago
last time i went here it was $22 for a hamburger, fries, and a drink. they can go fugg themselves
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u/Desperate_Return5199 1d ago
I live in rural CA, the carls junior near me is always a ghost town. I made the mistake trying it once, expensive and nothing like it was when I was younger.
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u/IAmConnorRK800 2d ago
Just bring back Paris Hilton...that'll work 🙃
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u/strolpol 2d ago
They deserve to go out of business, their deals are bad and their menu is devoid of original ideas. Carls Jr is no one’s first choice
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u/SimkinCA 2d ago
Every fast food company should be burned to the ground, with their continued gouging, 3-4% inflation, 100-300% increase in prices.. F$ck them!
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u/ToeLimbaugh 2d ago
Quality control is non existent and it costs 2x McDonald's. Shocked Pikachu
Tennessee can have all the stores. I don't want to see them in California anymore.
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u/AmarilloArmadillos 2d ago
Tennessee isn't the only place that has Carl's JR.... They are also worlds better thanost other FF burger options tbh.
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u/Puzzleheaded_Elk1576 2d ago
Carl’s Jr./Hardee’s was always the lower tier fast food place. Wendy’s is slipping into their territory and will be gone in the next 10 years.
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u/RealisticAd838 1d ago
My local Hardee's in Plant City FL. Closed. Went to another one and after paying their prices I understand why
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u/MostlyHouseplants 1d ago
Whoever does Carl’s Jr.’s marketing is a coward.
Not even one “Welcome to the Gulf of America, brought to you by Carls Jr.” billboard?
Pathetic.
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u/Pitiful-Aide-3141 21h ago
They charge more than a lot of actual sit down restaurants..
…..last time I went there I got a single combo and it was like 22 dollars. GTFO, I never went back. Used to get 2 bacon westerns for 5 bucks. A spicy chicken for a dollar. I’m not paying 20 dollars unless I get a server.
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u/SanJoseThrowAway2023 1d ago
Folks keep talking about the $6 burger. Meanwhile Chili’s pulled their head out of their ass and starting selling a burger fries soda chips combo for $14 and they are killing it.
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u/DJC_Kowalski 2d ago
It's a tough life in the world of expensive beef and high tariffs. It turns out that the droughts brought on by global warming are brutal on the national cow herd. The national Cattle herd is the smallest since 1951, and burger costs are skyrocketing if anyone's been to the market.
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u/sjtomcat 1d ago
I can say in my 31 years of life I’ve never had Carl’s Jr and until this post forgot they even existed. I actually think I’ve maybe ever seen like 2 in the wild
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u/Upper-Capital-2876 2d ago
When Carls Jr got rid of the Teriyaki Burger as a regular menu offering 10 years ago, I must have cut back going from once a week, to once every couple months