Hardee's

Hardee's Food Systems, Inc.
Wholly owned subsidiary
Industry Restaurants
Founded Rocky Mount, North Carolina (1960 (1960))
Founder Wilber Hardee
Headquarters St. Louis, Missouri, U.S.
Number of locations
 1,944 (January 2013)[1]
Key people
 Andrew Puzder, CEO
Products Fast food (including hamburgers, french fries, and milkshakes)
Parent CKE Restaurants
Slogan "Eat Like You Mean It"
Website hardees.com

Hardee's Food Systems, Inc., is an American-based fast-food restaurant chain operated by CKE Restaurants Holdings, Inc. ("CKE") with locations primarily in the Southern and Midwestern United States. The company has evolved through several corporate ownerships since its establishment in 1960 in North Carolina.

In April 1997, CKE Restaurants Holdings, Inc., the parent company of Carl's Jr., paid $327 million to Montreal-based Imasco Limited for Hardee's.[2] The merger created a chain of 3,828 restaurants - 3,152 Hardee's outlets in 40 states and 10 foreign countries and 676 Carl's Jr. outlets, primarily in California.

History

Hardee's founder, Wilber Hardee, opened his first restaurant in Greenville, North Carolina, on September 3, 1960.[3] After a year of success, Wilber decided to look into expanding his restaurant and opening another location so he met with James Gardner and Leonard Rawls to discuss doing so.[4] Shortly thereafter, the first company store was opened in Rocky Mount, North Carolina, in May 1961 by James Carson Gardner and Leonard Rawls on McDonald Street in downtown Rocky Mount. That location has since been razed.[5] According to Wilber Hardee, Gardner and Rawls won a controlling share of the company from him in a game of poker. After realizing that he had lost control over his namesake company, Hardee sold his remaining shares to them as well.[6]

Rawls and Gardner sold their first franchises to a small group of longtime friends and acquaintances who formed their own companies and over time, built hundreds more franchised locations. Hardee’s Food Systems went public in 1963 with Rawls as president. Gardner, who was vice president, had political ambitions and left the company when he was elected to the United States House of Representatives in 1966.[7]

The 1964 menu included: hamburger-15 cents, cheeseburger-20 cents, fries-10 cents, apple turnovers-15 cents, milk-12 cents, coffee-10 cents, Coke, Pepsi, Root Beer and Orange Soda-15 cents and 10 cents, and milk shakes (chocolate-strawberry-vanilla)-20 cents. Strawberry shakes were created from vanilla by addition of a berry syrup which had to be mixed with a spindle.

At the end of the 60s, the corporation operated nearly 200 restaurants in the Midwest and Southwestern U.S., as well as its first international locations in Germany.[8]

Hardee's purchased Sandy's in 1972 with the last of the restaurants converting to Hardee's by 1979. During the mid-and-late 1970s, Hardee's saw rapid chain growth and high profits on the strength of its two key sandwiches: the "Big Twin" and the "Big Deluxe". Another acquisition occurred in the late 1970s when Hardee's purchased the Utah-based burger chain Dee's Drive-In.

The logo used by Hardee's, typically depicted in orange on a blue or brown background and used from 1976-1999 — until adopting the Happy Star logo from Carl's Jr..

Hardee's was purchased by Canadian company Imasco in 1981. In 1982, General Foods sold Burger Chef to Imasco Limited. A new management team in the early 1980s seeking to cut costs changed the signature burger recipe and eliminated the flagship menu items of the Big Twin and the Big Deluxe.

For a few years in the early 1990s, Hardee's outlets sold the popular fried chicken recipe, gained from the Roy Rogers fast food chain after it was acquired, hoping it could compete with Kentucky Fried Chicken. In addition to Roy Rogers, Hardee's also owned Rax Roast Beef for a period of time and sold roast beef sandwiches throughout the Hardee’s system.

In April 1997, CKE Restaurants Holdings, Inc., the parent company of Carl's Jr., paid $327 million to Montreal-based Imasco Limited. for Hardee's. The merger created a chain of 3,828 restaurants - 3,152 Hardee's outlets in 40 states and 10 foreign countries and 676 Carl's Jr. outlets primarily in California.

In 2001, Hardee’s headquarters moved to St. Louis, Missouri. In 2005, Hardee’s introduced Hand-Scooped Ice Cream Shakes & Malts.

In 2012, Nation's Restaurant News ranked Hardee's as the No. 28 foodservice chain by sales in the United States through 2011. Carl's Jr. was ranked at No. 37. Combined sales would rank the two at No. 15. In 2013, QSR listed Hardee's at No. 20 and Carl's Jr. at No. 24; if combined they would have been listed at No. 14.

In September 2013, it was announced that Hardee's would expand into the Northeastern United States. In April 2015, Hardee's announced the opening of its 300th restaurant in the Middle East with longtime franchisee, The Americana Group.

In July 2015, Hardee’s announced that it would be offering The All-Natural Burger, which launched at sister-chain Carl’s Jr. restaurants in December 2014.[9]

As of March 2016, CKE has a total of 3,664 franchised or company-operated restaurants in 44 states and 37 foreign countries and U.S. territories.[10]

Philanthropy

The company sponsored the Winston Cup cars driven by Bobby Allison, Cale Yarborough, Dale Jarrett, and Alan Kulwicki throughout the 1980s and in 1990, Hardee's sponsored Russ Wheeler's car in the film Days of Thunder. In 1991, Hardee's sponsored the fall race at Atlanta Motor Speedway, the Hardee's 500. The company also sponsored Ward Burton's Busch Grand National and Winston Cup cars from 1993 to 1995. Hardee's also sponsored Greg Sacks in 1997, and Jeff Burton's Busch Grand National car in 1999.

CKE conducts an annual "Stars for Heroes" in-store fundraising campaign at both Carl’s Jr. and Hardee’s to benefit U.S. military veterans and their families. Since the program’s launch in 2011, Stars for Heroes has raised nearly $5 million cumulatively.

Controversies, disputes, and legal issues

Burger Chef Copyright Dispute

In January 2007, Hardee's had a challenge filed against it with the U.S. Patents and Trademarks Office by River West Brands, LLC of Chicago for the use of the Burger Chef trademark and name. Shortly thereafter, Hardee's reissued the Burger Chef Big Shef sandwich in Terre Haute, Indiana, as a trial offering and later in additional Indiana markets and Dayton, Ohio for a limited time. The reissue of the Big Shef has also utilized the Burger Chef name and logo in advertisements in the markets in which it is offered, and claimed to provide Burger Chef fans with their Big Shef "fix". On April 16, 2009, River West Brands dropped their petition for cancellation and both parties agreed to pay their own attorney's fees.[11]

Harvey's Controversy

Due to a trademark dispute with Canada's Harvey's burger chain, the Hardee's brand name cannot be used in the country. Instead, CKE Restaurants operates exclusively under the Carl's Jr. banner.[12]

Advertising

A new Hardee's logo was unveiled in 2006 that featured script lettering and retained the iconic Happy Star, further unifying the Hardee’s and Carl’s Jr. brands. Hardee's also marketed special Super Bowl celebratory pins in the early 1990s.

In January 2015, Carl's Jr. released a commercial online featuring model Charlotte McKinney advertising its new All Natural Burger to air regionally during Super Bowl XLIX. The ad features McKinney walking around a farmers' market, implying that she is "all natural" and uses double entendres to suggest that she is naked with strategically placed items in the market, until it reveals McKinney in a bikini eating the All Natural Burger. Critics suggest that the ad "sets feminism back four decades," while others, including McKinney's elderly grandfather, enjoyed the ad.[13][14][15] The ad now features Hardee's cobranding as the All Natural Burger is now offered by Hardee's. As of March 2016, the ad has received over 4.5 billion media impressions worldwide and more than 12 million views on the chains’ YouTube channel.

Criticism

Several Hardee's ad campaigns in the 2000s have been criticized by groups including Parents Television Council for their sexually suggestive nature. A campaign titled "More Than a Piece of Meat" featured scantily clad women appearing to receive sexual gratification from consuming Hardee's products, and "Name Our Holes" — an ad campaign and website promoting Hardee's Biscuit Holes.[16][17]

International franchises

The only remaining international Hardee's franchises are located in countries in the Middle East and Pakistan, most being owned and operated by Americana Group.[18] The Americana Group opened the Middle East’s first Hardee’s restaurant in Kuwait in June 1980.[19] Today, there are over 300 Hardee’s restaurants throughout the Middle East.[20] Specifically, in the Middle East, the Hardee’s menu does not include any pork items and each beef is certified Halal due to religious and cultural beliefs.

References

  1. ↑ "CKE Restaurants, Inc. Announces Preliminary, Unaudited Fourth Quarter and Full Year Fiscal 2013 Results". Retrieved 4 September 2015.
  2. ↑ Canedy, Dana (1997-04-29). "CKE Restaurants, Parent of Carl's Jr., Buying Hardee's". The New York Times. ISSN 0362-4331. Retrieved 2016-04-11.
  3. ↑ Robert Kammerer and Candace Pearce, Images of America: Greenville (Arcadia Publishing, 2001), p114
  4. ↑ "The Story of Hardee’s |". Our State Magazine. Retrieved 2016-04-11.
  5. ↑ "Rocky Mount, NC - First Hardee's Franchise".
  6. ↑ "Hardee’s founder Wilbur Hardee dead at 89 - Food Inc. - MSNBC.com".
  7. ↑ "The Story of Hardee’s |". Our State Magazine. Retrieved 2016-04-11.
  8. ↑ Kieler, Ashlee. "How Carl’s Jr. & Hardee’s Became One Giant Burger Chain With Two Names". Consumerist. Retrieved 2016-04-11.
  9. ↑ http://investor.ckr.com/press-release/carls-jr/carls-jr-and-hardees-go-all-national-all-natural-burgers
  10. ↑ http://investor.ckr.com/press-release/hardees/cke-restaurants-holdings-inc-announces-opening-300th-restaurant-middle-east
  11. ↑ http://ttabvue.uspto.gov/ttabvue/ttabvue-92046880-CAN-32.pdf
  12. ↑ "Carl's Jr. set to launch in Ontario". Canadian Restaurant News.
  13. ↑ Racy Super Bowl ad draws controversy WTNH (01/22/2015)
  14. ↑ NEWS/ Carl's Jr.'s New Super Bowl Commercial Featuring a Naked Model May Be Too Hot for TV! Watch Now E! (01/22/2015)
  15. ↑ Charlotte McKinney's Dad 'Friggin' Loved' Her Carl's Jr. Super Bowl Commercial People (01/29/2015)
  16. ↑ Parents Television Council "Weekly Wrap",http://www.parentstv.org - Retrieved 2009-07-02
  17. ↑ "ClickOrlando.com".
  18. ↑ "Americana Group - Homepage". Retrieved 4 September 2015.
  19. ↑ http://investor.ckr.com/press-release/hardees/cke-restaurants-holdings-inc-announces-opening-300th-restaurant-middle-east
  20. ↑ http://investor.ckr.com/press-release/hardees/cke-restaurants-holdings-inc-announces-opening-300th-restaurant-middle-east

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