Choosing a Consumer Franchise - Carl's Junior

If you were to choose a consumer franchise to operate, what would it be? Why? Ensure that emphasis is placed on marketing related factors when providing the reasons for your choice.

According to Food & Beverage Franchising (2003), Singaporeans expenditure on food made up 21.3% of the total expenditure, and it was reflected that there was a preference for eating out over home-cooked food: expenditure on cooked food products accounted for 57% of the total food expenditure. In addition, Tay (2005) states that in an ACNielsen survey carried out in October 2004, “Singapore was ranked fourth in Asia Pacific for the percentage of population that eats at fast-food restaurants at least once a week”. Therefore, based on the sustainability of the food industry and popularity of fast food in Singapore, I would choose to operate a Carl´s Jr.® franchise.

Today, the steady franchise growth of Carl's Jr.® is evidenced with “1,101 Carl's Jr. restaurants operating in 12 US states and 5 foreign countries”. From a Singapore (local) perspective, given the fact (trend) that it has since tripled (from 2 outlets in 2005 to its current 6 outlets) in Singapore, makes it a lucrative (niche) business opportunity. Its ceaseless focus on quality, service, cleanliness, and product innovation, gives it a competitive edge over competitors; it has “long been known as the place to go for juicy, premium quality charbroiled burgers”. (Carl´s Jr.® Singapore 2006)

“Carl´s Jr.® is a wholly-owned subsidiary of CKE Restaurants, Inc., a publicly traded company listed on the New York Stock Exchange” (http://www.franchising.com/carlsjr/), and has “been satisfying the tastes of hungry young eaters for decades, ever improving their products and services along the way” (Nation's Restaurant News 2007). The Carl´s Jr.® franchise is a contractual vertical marketing system “with an emphasis on franchisee support, innovative business systems and sheer dominance of the quick-service burger market” (Nation's Restaurant News 2007). Thus, by teaming with one of the largest and most experienced company around (Carl´s Jr.® Singapore 2006), it provides security and assurance to the franchisee as (staff) training and support (managerial advice) is available in starting the business... Read more>>