Title: Carl’s Jr. Franchisee in Australia Enters Voluntary Administration, Prompting Store Closures
I. Voluntary Administration Causes Closure of Carl’s Jr. Restaurants in Australia
– CJ’s QSR Group (CJQSR), the franchisee operating Carl’s Jr. in Australia, has been placed into voluntary administration.
– KPMG Australia has been appointed as the voluntary administrator.
– As a result, 20 Carl’s Jr. stores have closed immediately, while four remain open for now.
– 25 independently owned and operated Carl’s Jr. restaurants will continue to operate unaffected by the administration.
II. KPMG Takes Control as Voluntary Administrator
– KPMG administrators are now overseeing the operations and conducting an urgent assessment of CJQSR.
– The owned and operated CJ’s Group restaurants will continue to trade normally during the administration.
– KPMG is focused on stabilizing the business and will initiate an immediate sale process for the existing store network and operations.
– They will also engage with employees, suppliers, and landlords to maximize outcomes for all parties involved.
– A meeting of creditors has been scheduled for August 7.
III. Carl’s Jr.’s Commitment to the Australian Market
– Despite the challenges faced in Australia, Carl’s Jr.’s parent company, CKE, affirms its commitment to international growth.
– CKE is transitioning the 25 sublicensed restaurants to a direct licensed relationship, expecting minimal impact on these locations.
– The unaffected restaurants are located in Victoria, New South Wales, South Australia, and Queensland.
– CKE is working closely with the administrator and other parties to minimize the impact on employees, consumers, and the brand.
IV. Carl’s Jr.’s Expansion Efforts in Australia
– Carl’s Jr. initially attempted to enter the Australian market in the 1980s but withdrew due to intense competition.
– However, the brand made a significant effort to re-establish itself in Australia in the mid-2010s.
– The chain expanded across multiple states, including Queensland, Victoria, South Australia, and Western Australia.
– Carl’s Jr. faces fierce competition from established fast-food chains like McDonald’s, Hungry Jack’s, KFC, Domino’s, and others.
V. Carl’s Jr.’s Unique Offerings and Market Position
– Carl’s Jr. restaurants in Australia are known for their use of 100 percent Australian Angus beef and hand-breaded chicken tenders.
– The brand emphasizes the use of fresh local produce and high-quality ingredients.
– Despite the competition, CKE remains committed to the Australian market and its community of independent licensees.
In conclusion, the voluntary administration of CJQSR, the franchisee operating Carl’s Jr. in Australia, has led to the immediate closure of 20 stores. KPMG has been appointed as the voluntary administrator and will focus on stabilizing the business while conducting an assessment and initiating a sale process. The parent company, CKE, remains committed to international growth and is transitioning the 25 unaffected restaurants to a direct licensed relationship. Carl’s Jr. faces strong competition from established fast-food chains in Australia, but it differentiates itself with its use of local ingredients and commitment to quality. Despite the challenges, CKE affirms its commitment to the Australian market and its independent licensees.
