Carl’s Jr. to Tie TV Ads to Remodeling of Units

Carl Karcher Enterprises said it will spend between $20 million and $25 million to remodel its restaurants in a program that will be coupled with a television advertising campaign focusing on the new look and some recent adjustments to the fast-food chain’s menu.

The Anaheim-based company said the decision to remodel its 458 restaurants followed a test remodeling of the company’s outlets in Bakersfield, where the new look and the introduction of a self-service beverage bar boosted sales at the seven Carl’s Jr. restaurants by about 15%.

“We’re very confident this is what we should be doing,” said Bob Wisely, vice president of marketing. Karcher officials said the remodeling process should take about two years to complete. The 200 or so restaurants in Southern California will be completed first.

In July, when work on the Southern California restaurants is completed, Karcher plans a television advertising campaign focusing on what it hopes will be its brighter image. In all, the company expects to spend $15 million in advertising this year.

Like others in the restaurant industry, Karcher has suffered in recent years from slow sales and increased competition. For the first nine months, the company reported net income of $4.2 million compared to net income of $3.8 million for the comparable period a year earlier.