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Carl’s to Sell More Burgers South of the Border : Fast food: Carl Karcher Enterprises signs 20-year deal with Mexican franchisee to open outlets in the state of Jalisco.

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TIMES STAFF WRITER

Continuing its expansion into Mexico, the Carl’s Jr. hamburger chain may soon be opening stores in Guadalajara and the resort city of Puerto Vallarta.

Carl Karcher Enterprises said Monday that it has signed a 20-year agreement with the Mexican firm of Garibay/Martin Group to open Carl’s Jr. outlets in the state of Jalisco, northwest of Mexico City. The group’s interests include hotels, automobile and motorcycle dealerships, and furniture stores.

The group expects to open its first restaurant in Guadalajara, Mexico’s second-largest city, by the end of 1992. Four more outlets in Jalisco are planned by 1997.

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“We believe Carl’s Jr. will be very popular,” franchisee Pedro Garibay said in a statement.

Anaheim-based Karcher entered the Mexican market last year by naming a licensee to operate Carl’s Jr. restaurants in Monterrey--near the Texas border--and nearby cities. One restaurant has opened in Monterrey and another is under construction.

“Carl is a celebrity already” in Monterrey, said Steve Kishi, Karcher’s vice president for international development.

Although there are already two McDonald’s and a Burger King in Guadalajara, Kishi said, the fast-food company hopes that Mexicans will appreciate the California roots of Carl’s Jr.

Guadalajara “is a large city but not as crowded as Mexico City,” he noted, but building there is expensive. Prime restaurant locations are in such heavy demand that property costs in Guadalajara can reach as high as $80 per square foot--two or more times higher than some comparable sites in Orange County.

With the U.S. market becoming saturated with fast-food outlets, many operators have been looking south of the border to Mexico, a mostly untapped market.

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Karcher also has restaurants in Japan and has signed agreements to bring the burger chain to Malaysia and the Middle East. The chain has 608 restaurants.

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