Carl’s Jr Australia: Qld stores still open amid voluntary administration as plans continue for new restaurant in Toowoomba
All is not lost for the Australian future of embattled burger chain Carl’s Jr, with plans continuing for a new location in regional Queensland to complement the 13 stores still open.
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The future of embattled burger franchise Carl’s Jr in Australia might not be sealed just yet, with construction expected to start soon on a new restaurant in regional Queensland while dozens of stores remain open across the state.
Officials from the American chain are reportedly in the country this week to meet with remaining franchisees, following news the master franchise holder CJ’s Group had been placed into voluntary administration.
While 20 of the 24 stores under direct control of the Melbourne-based master franchisee have closed across eastern Australia, another 25 independently-owned and operated locations remain open and are unaffected by the move.
These include all 13 Queensland locations (in Brisbane, Ipswich, Logan, Gold Coast and Rockhampton), all seven South Australian stores and about half-a-dozen across Victoria and New South Wales.
Developer Keith Beer, who is building Queensland’s newest Carl’s Jr in Toowoomba for his nephew David, said US representatives had reassured him enough to begin construction soon.
“We’ve been contacted by the American arm, they’ll be arranging a chat with us (this week),” he said.
“All it’s affecting are the stores (CJ’s Group) had in Victoria.
“The others are owned by independent owners, they rang us up and explained the situation.
“They said they’ll offer incentives to show they’re still serious.”
Mr Beer also confirmed the news the control of the remaining franchises would be transitioned to a direct licensed relationship with CKE Restaurants Holdings, Inc, as opposed to be previous arrangement where they fell under the master franchisee.
“They’re travelling around to tell us that the Americans are going to run it from Australia,” he said.
“The license will be direct from Carl’s Jr in America, so they are wanting to come and explain the terms and conditions.”
Mr Beer said the collapse of CJ’s Group had affected the brand’s image across the country, criticising the actions of company directors Andrew Firn, Miro Sloup and Gregory Rako.
“(CJ’s Group is) the one chink in the armour that’s been dinted (but) it does affect the brand, that coming out in the media,” he said.
“All the others are trading and profitable.
“These other two chaps took those stores over (and) they started opening stores here, there and everywhere.”
Mr Beer said he hoped to start construction on the new Toowoomba store, on Bridge Street in Wilsonton, before the end of the year.
While the brand isn’t finished in Australia, the placement of CJ’s Group into voluntary administration has extinguished dreams of the company owning 200 Carl’s Jr restaurants across the country by 2027.