Burger wars: Carl’s Jr fightback sparks Aussie fast food battle

A full-scale burger war is looming as Carl’s Jr vows to win back Aussies, with analysts seeing fast food giants McDonald’s, Hungry Jack’s, Domino’s, KFC up for the battle.

Market analysts believe any vacuum in such a cutthroat market as the fast food industry is dangerous for all concerned, especially with the closure as many of 24 Carl’s Jr restaurants and several undeveloped sites expected to come up for grabs.

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A major battle is looming for the fast food dollar with a variety of players in the market including independents offering more “wholesome” options. Picture: Facebook/Soul Burger

An industry source said major brands like McDonald’s, Hungry Jack’s, KFC and others never shied away from competition in areas they operate in, and with build costs at escalated levels, some could take the opportunity to consolidate any lucrative sites vacated by Carl’s Jr stores.

“They appear to be in some pretty good locations,” he said, which could draw competitors to explore the sites.

“Rents have gone up. Tenants have been offering increasing rents to secure new locations. That’s largely a function of the huge cost it takes now to actually open up a brand new store. The build costs are through the roof.”

With build costs so high, other fast food chains could already be circling lucrative Carl’s Jr sites that may be set to close, analysts say. Picture: NewsWire / Max Mason-Hubers

Competition is everywhere in the hunt for the perfect burger.

A CKE spokesman – the international parent company of Carl’s Jr restaurants – confirmed they would fight on to expand in Australia despite taking a major hit with the voluntary administration of its Australian master licensee impacting 24 stores.

“Australia remains a key growth market for CKE, and CKE is excited about the opportunities the country and its consumers offer the brand,” he said.

“Global impacts, including inflation, supply chain pressures and shifting consumer behaviour, have challenged some Australia business sectors. However, CKE remains committed.”

Carl’s Jr has 25 sites that are not affected by the voluntary administration of the master licensee which will transition and keep operating.

That commitment will see 25 sublicensed Carl’s Jr restaurants not subject to the voluntary administration process battle on for Aussie tastebuds across New South Wales, Victoria, South Australia and Queensland, with the brand hoping to add more soon.

When it comes to price, Carl’s Jr sits in the middle ground compared to other fast food options.

“They’re a higher pricepoint than the usual options that we all know and love, the international groups being McDonald’s and equivalent, but they’re also less expensive than Grill’d,” the industry source said.

“Hungry Jack’s recorded their best year ever last year so it makes you wonder how did this not go as good? Maybe it’s just because it takes a while to get up and running, get economies of scale and make a profit.”