Loooking at Orange County’s Past Year Sheds Light on ’86 : Food
It was a year when Carl Karcher Enterprises went “back to basics,” when Naugles Inc. nearly lost its shirt and Taco Bell pulled a pizza out of its Mexican hat.
But 1985 may have marked just the beginning of what industry analysts project could be a crucial turning point for Orange County’s fast-food and restaurant industry.
In fact, 1986 could represent a year when six major Orange County restaurant companies at once attempt to vastly change their images from that of recent years.
Key among them is Anaheim-based Carl Karcher, owner and operator of more than 400 Carl’s Jr. restaurants. The fast-food giant that struggled with declining earnings in 1985 will continue to pump millions into advertising its revamped image as a hamburger chain that features value and prompt service.
Struggling Fullerton Chain
Naugles Inc. is also expected to undergo a renaissance in 1986. A majority of the stock of the struggling Fullerton-based Mexican fast-food chain was purchased by Collins Foods International Inc. of Los Angeles.
Collins is regarded by analysts as one of the nation’s top restaurant companies. If it fails to quickly turn Naugles around--primarily through an intensive advertising campaign--analysts suspect that Collins may fold Naugles into its Kentucky Fried Chicken operations.
Wayne Withers, chairman of Naugles, has already projected continued losses in 1986.
Two other Mexican restaurant operations--Taco Bell and El Torito Restaurants Inc.--are both expected to see continued growth in 1986.
Taco Bell, the Irvine-based division of Pepsico Inc., will continue its march toward the mainstream of fast-food by offering yet more dishes that are familiar to the American palate and less Mexican-oriented.
More American Food
And El Torito, the Irvine-based subsidiary of W. R Grace & Co., also is expected to test-market more American-themed restaurants, such as Players and Remicks, the two it opened in Irvine this year.
But two of the more interesting restaurant companies to watch in 1986 could be chains that have kept relatively quiet in 1985--Rusty Pelican Restaurants Inc. and Wienerschnitzel International.
Rusty Pelican, the Irvine-based seafood chain, quietly spent millions adding new restaurants in upscale markets throughout the West Coast in 1985. Analysts predict that the company could be on the brink of tremendous growth over the next few years.
And Wienerschnitzel, a company long regarded as little more than a hot dog outlet, is in the midst of completely remolding its image. The Newport Beach operator of nearly 350 stores nationwide plans to pump millions into remodeling its facilities and updating its menu with more popular sandwich items.
