Latest news with #Hardee's
Yahoo
6 days ago
- Business
- Yahoo
The Fast Food Chain That Might Close 76 Restaurants This Year
In yet another case of franchisee versus parent company, fast food chain Hardee's is currently locked in a legal battle with a Nevada-based franchisee, called Paradigm Investment Group, and the real losers could be the patrons of 76 restaurants spread across the south. The eatery known for its big burgers and chicken offerings (though Hardee's' chicken sandwich did fall near the bottom of Food Republic's ranked list) is demanding Paradigm get into the 21st century and start offering online ordering (among other things), as well as adjust its business hours. Currently, the 76 stores in question are open no later than 2 p.m., eight hours shy of the 10 p.m. close-time Hardee's would prefer. Paradigm, for its part, is claiming that these changes would make the franchisee go bankrupt. When Hardee's issued a notice which declared its intent to close all 76 stores if its demands were not met, Paradigm filed a lawsuit against the fast food chain (which its parent company, CKE Restaurants, has taken up) in April. Read more: Ranking Fast Food Burgers From Worst To Best, According To Reddit While 76 restaurants hang in the balance, it's also important to note that Paradigm Investment Group, with CEO Don Wollan at the helm, has brought in over $1.6 billion in sales in the last 24 years, employs over 1,500 people across the states of Florida, Mississippi, Tennessee, and especially Alabama, and has operated these restaurants for a quarter of a century. The lawsuit, which is seeking $35 million from Hardee's to compensate Paradigm for financial losses, alleges that the organization shouldn't have to comply with Hardee's new requirements because they weren't in the contract originally. Additionally, details from the lawsuit reveal that the reason these Hardee's franchise locations close after 2 p.m. is because pretty much no one patronizes the restaurants after the lunch rush. Staying open, Paradigm argued, would end up costing the organization more money than it would bring in. Hardee's, which kicked off the fast food bacon craze in the 1990s, did end up backing off of its initial threat that it would close the 76 restaurants in question if its demands were not met, but depending on who wins this legal battle, the locations' futures are by no means secure. Want more food knowledge? Sign up to our free newsletter where we're helping thousands of foodies, like you, become culinary masters, one email at a time. Read the original article on Food Republic.
Miami Herald
27-05-2025
- Business
- Miami Herald
Huge burger chain fights to close dozens of its own restaurants
If someone asked you to name the top fast-food hamburger chains, the list might look something like this, McDonald's, Burger King. Wendy's, 5 Guys. Shake Shack, In-and-Out Burger, Whataburger, Carl's Junior, Culver's, Sonic, The Habit Burger Grill, and maybe Johnny Rockets. Related: Coca-Cola, Pepsi rival discontinues 3 popular soda flavors You can debate the order and whether a chain like Culver's is primarily a burger chain, and you may argue that other chains should be on the list. One of those chains, Hardee's, falls on the "is that truly a burger chain list?" and many people may not realize how big the chain actually. On the first point. Charbroiled Burgers are the key menu item for the chain. For the second, Hardee's may not equal McDonald's, Burger King, or Wendy's, but it still has a massive national and international footprint. Don't miss the move: Subscribe to TheStreet's free daily newsletter "For over 60 years, Hardee's has brought communities together with quality, delicious food. With more than 1,800 restaurants across the U.S., and locations in 13 countries, we are committed to the best tasting food to better serve our guests," it shared on its website. Now, the chain actually wants to close over 75 of those locations. Image source: TheHardee's, it should be noted, shares an owner, CKE Group, with Carl's Jr. and has a similar menu, but they are not the same brand with two different names. Essentially, Hardee's is the East Coast versions of the company while Carl's Jr., operates on the West coast, but the companies do have different management. The burger chain, at least the Hardee's version of it, has been having legal problems with one of its long-running franchise operators, Paradigm. "Our story begins in the late 1990's, Don Wollan, President of Paradigm, was in search to acquire and grow the Hardee's restaurant concept. Through the creation of four operating companies (now collapsed into Paradigm), the company acquired 14 restaurants in Springfield, IL in December 1999, 42 restaurants in Mobile, Biloxi and Pensacola in February 2000 and 64 restaurants in Huntsville and Montgomery, AL in October 2000," Paradigm shared on its website. The franchise operator flourished for decades. "Through a series of divestitures, closures, acquisitions and new store development spanning a 22 year period, the Company today owns 82 Hardee's restaurants in Huntsville, Montgomery and Mobile, AL, Pensacola, FL, Panama City, FL and Biloxi, MS," it added. More closings: Popular retail chain to close unprofitable store locationsBankrupt retail chain unloads store leases, key assetPopular discount retailer files bankruptcy, closes all stores That number has now dropped to 76, but it was not that long ago that Hardee's owner CKE was giving Paradigm awards. "In 2009, Paradigm was honored as recipient of the prestigious Wilbur Hardee Founder's Award as the top franchisee in the Hardee's system. In 2010, the Paradigm was honored as the top franchisee in the entire CKE chain of restaurants (including all Carl's and Hardee's Franchisees). In 2011 & 2012, Paradigm was recognized as the first company in CKE's history to win back to back awards as Developer of the Year across both brands," the franchisee shared. Now, Hardee's wants to take away Paradigm's franchise agreement and close its 76 stores. Hardee's has sent Paradigm notice that it intends to terminate its franchise agreement with the chain "citing the group's failure to participate in the brand's loyalty program and comply with operating hours, among other issues." Paradigm has filed a lawsuit to fight those claims and keep its 76 stores alleging that the parent company "unilaterally amended its operating manual to force franchisees to comply with fees and technology requirements not included in the franchise agreement." "They were ramming things down our throat which weren't in the franchise agreement," said Paradigm. CEO Don Wollan in an Franchise Times "And once you allow them to do got to create a business reason for me to want to opt into it, right? But what you can't do is shove it down my throat. And once I let you shove it down my throat, I've created a precedent, and what would stop you from trying to force-feed every fee that you could imagine down to me?" Related: Bankruptcy forces iconic ice cream chain to close 500 locations He claims Hardee's has acted in bad faith which hurt his chain which operates locations in Alabama, Florida, Mississippi and Tennessee. "Wollan said the brand's insistence that his stores adhere to specific operating hours, despite a negative impact on sales, and its push to collect undisclosed fees, among other events, led to the lawsuit," according to the website. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Daily Mail
26-05-2025
- Business
- Daily Mail
Hardee's at risk of closing more locations
A major Hardee's operator is at risk of losing all 76 of its restaurants after the fast food giant accused it of repeatedly breaking the rules. Paradigm Investment Group, which runs Hardee's locations across Alabama , Florida , Mississippi , and Tennessee , filed a lawsuit after the company threatened to terminate its franchise agreement. Hardee's claims Paradigm refused to follow key brand standards — like offering third-party delivery, joining loyalty programs, and keeping locations open from 6am to 10pm. Some stores reportedly closed at 2pm, skipping dinner hours entirely. The franchisee also allegedly failed to pay tech fees, racking up more than $230,000 in unpaid charges, according to court documents. In its defense, Paradigm says Hardee's knew about and accepted the changes, which it claims were necessary to keep the restaurants afloat. If Hardee's prevails, Paradigm could lose all its restaurants and be forced to pay $13 million in damages in damages. Hardee's, which has 1,800 restaurants in the US, has struggled for years, amid a sales slump, restaurant closures and franchisee bankruptcies . The company has closed 200 over the past decade, and 150 since 2021. Hardee's is the 10th largest fast-food burger chain in the US in terms of total sales. Each Hardee's store generates much less revenue than the likes of McDonald's, Wendy's and Burger King. Paradigm has been a franchisee since 2000 and calls itself 'one of the most profitable and successful operators in the Hardee's brand.' However, its business practices have been a red flag in Hardee's eyes since 2021. Each Hardee's restaurant make less than $1.2 million a year, with worldwide sales being just under $2 billion, according to Restaurant Business . Another major franchisee, Summit Restaurant Holdings, closed 39 of 108 restaurants after filing for bankruptcy protection in 2023. While Hardee's has continued to crumple, its competition has also been sinking. McDonald's sales dropped 3.6 percent in its first quarter , while Burger King suffered a 1.3 percent North America sales dip after its franchisee Consolidated Burger Holdings filed for bankruptcy protection . Other fast food chains that have fallen victim to inflation and restaurant closures include Subway and Jack in the Box.
Associated Press
06-05-2025
- Business
- Associated Press
Hardee's Introduces New Menu Offerings to Kick Off Warmer Weather
ROCKY MOUNT, N.C., May 06, 2025 (GLOBE NEWSWIRE) -- Hardee's, famous for its golden-brown Made from Scratch™ biscuits, fresh Hand-Breaded Chicken Tenders™ and more, is getting a head start on summer with several exciting new offerings, as well as bringing back a customer favorite. Homestyle Breakfast Burritos are the latest addition to the breakfast menu, now available until noon daily. Options include the Homestyle Loaded Breakfast Burrito, which features a loaded omelet filled with crumbled savory sausage, bacon, ham, crispy Hash Rounds® and cheddar cheese all wrapped inside a warm flour tortilla and served with Texas Pete hot sauce, and the Homestyle Sausage, Egg & Cheese Breakfast Burrito, featuring grilled, savory sausage patties, fluffy folded eggs, crispy Hash Rounds®, and cheddar cheese wrapped inside a warm flour tortilla, served with Texas Pete hot sauce. Breakfast isn't the only meal receiving a little extra love. The Duke's® Carolina Gold BBQ Chicken Sandwich, an all-white meat chicken fillet hand dipped in buttermilk, lightly breaded and fried to a golden brown with Duke's® Carolina Gold BBQ sauce, bacon, dill pickles, lettuce, tomato and mayonnaise served on a premium bun, is the newest member of the Hand-Breaded Chicken family at Hardee's. Alongside the sandwich, quench your thirst with a Peach Shake, Lemonade or Iced Tea. In addition, Hardee's is bringing back for a beloved customer favorite, the Blueberry Biscuit, available in packs of two or four. And for those looking to celebrate the moms and mom-like figures in their lives this Mother's Day, all other fresh Made-from-Scratch™ biscuits will be heart-shaped from May 8-14. All Hardee's owned and operated by Boddie-Noell Enterprises, the nation's largest Hardee's franchisee with more than 300 locations across Kentucky, North Carolina, South Carolina and Virginia, are now offering the expanded menu. Mobile ordering is available through the Hardee's MyRewards app. Guests who download and sign up get access to exclusive offers and coupons and can earn points to be redeemed for menu rewards. About Boddie-Noell Enterprises Boddie-Noell is proud to have been a Hardee's franchise operator for more than 60 years. Family-owned, Boddie-Noell is the largest Hardee's franchisee in the United States with 323 restaurant locations in four states. The company is based in Rocky Mount, N.C. For more information, visit CONTACT: Lindsay Priester 919-971-4451 [email protected]
Miami Herald
01-05-2025
- Business
- Miami Herald
Another fast-food burger chain is quietly closing locations
Although it once seemed impossible for emerging fast-food brands to overpower the already established giants like McDonald's (MCD) , Burger King, and Subway, times have changed, and newer chains are making headway in the quick-service industry. With younger generations favoring innovation, technology, and efficiency, older fast-food chains may be losing their appeal. Don't miss the move: Subscribe to TheStreet's free daily newsletter This has led some classic chains to slowly reduce their footprints and sparked fear that they will be completely erased. Related: McDonald's menu adds new item that Chick-fil-A fans love If established fast-food chains don't start formulating new strategies, following trends, and adapting to consumers' needs, this fate might reach them sooner than anticipated. To be fair, McDonald's and Burger King aren't going anywhere, but some other classic chains are facing increasing problems. Image source: TheCKE Restaurants has over 3,800 company-operated and franchised restaurants in 44 states and 43 countries worldwide under Hardee's and Carl's Jr., two classic American fast-food chains. The sister brands are known for their recognizable single-star logo and classic menus, which include charbroiled burgers, chicken strips, and fries. Although they are owned by the same company and have the same restaurant colors and logos, slight differences include Carl's Jr.'s Chicken Stars star-shaped nuggets and the Hardee's breakfast menu. However, these are minor differences compared to the chains' similarities, which have made them almost identical, despite them once being two distinct brands with separate menus. Related: Popular breakfast restaurant chain menu adds deal amid closures Carl's Jr. was founded in 1941 and had restaurants mainly on the West Coast. A few years later, Hardee's emerged in 1960 and began opening locations all across the U.S. CKE Restaurants, the owner of Carl's Jr., acquired Hardee's in 1997. This might have been the biggest detrimental move for both brands, since their success tracks have shifted drastically ever since. Although the merger helped the company expand its footprint to nearly 2,500 locations at the time, it also caused Hardee's and Carl's Jr. to lose their identities as individual brands, leading to overlapping menus and businesses that operated without a significant distinction or a focus on different consumer preferences. In 2023, Summit Restaurants Holdings, a major Hardee's franchisee, filed for Chapter 11 bankruptcy. This led the company to close nearly 40 Hardee's locations across multiple states in the Midwest and South, which it attributed to underperformance across all restaurants and a lack of in-store foot traffic. Although devastating, this event only began a series of continuous closures. More Food News: Wendy's makes 'dirty' addition to its menuPopular Southern fast-food chain returns to Texas after a decadeChipotle CEO plans major change customers will cheer Last year, Hardee's closed locations in at least seven cities in Illinois and has already made multiple closures in 2025, including one in Delaware. Carl's Jr. also suffered a similar unfortunate fate. Over the last several months, it has closed multiple locations, with over 20 restaurants in Australia last year and one in Georgetown, Texas, which is being replaced by a new Chick-fil-A location this month. Both fast-food chains already have a very limited presence on the East Coast and in the New England region, as there are no restaurants in Massachusetts, Connecticut, Rhode Island, New Hampshire, Maine, or Vermont. Because CKE Restaurants is not publicly traded, the fast-food chains' exact restaurant counts are not available. The company has also not confirmed the precise number of restaurant closures completed in 2025 or planned for the rest of the year. And, while the company has closed locations, Carl's Jr. Restaurants and Hardee's Restaurants still have over 3,800 franchised or company-operated restaurants in 44 states and 43 foreign countries and U.S. territories. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
