Carl's Jr. Restaurants

Carl's Jr. began as a chain of hamburger stores in 1956, growing out of the existing restaurants owned and operated by Carl Karcher. He started his first restaurant in 1941. His first restaurant consisted of a hot-dog stand purchased for $350 and opened additional hot-dog stands before adding hamburgers to the menu. He was operating a full-sized restaurant in the Anaheim in the fifties called Carl's Drive-In Barbecue. In 1956 Karcher opened two smaller restaurants and called them Carl's Jr., which is the reason for the name the chain still carries (Barrier, 1988, pp. 63-64).

The company grew slowly until the 1970s, after which it expanded more rapidly. Throughout, the company remained a family enterprise, and Karcher used the company to provide for family members and loyal employees. Two brothers, two sons, a daughter, and a grandson own 60 of the company's 226 franchised units, and former employees make up half the company's 50 franchisees.

Karcher himself is a devout Catholic who attends church each morning at 6:30 and who often starts company meetings with the Pledge of Allegiance and the prayer of St. Francis of Assisi. Carl Karcher Enterprises is said to be among the most generous in terms of its treatment of staff, providing a broad benefits program that extends to hourly employees, higherthanaverage managerial salaries, and relatively short work weeks.

By the 1980s, the company was experiencing problems affecting its perfo

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