Grab More Market Share: How to Wrangle Business Away from Lazy Competitors

The Six Dollar Burger is Probably Too Cheap

I have been a fan of Carl's Jr. and Hardee's restaurants for a long time. If I had to boil it down, it would have to be the food. It's darn tasty. Their six-dollar burger is worth seven bucks easy. The hamburgers are big and gooey. You've seen their ads. Celebrities like Paris Hilton devouring a burger while decorating her body over a sudsy Bentley. Sweaty Top Chef host Padma Lakshmi nearly makes out with her hamburger while hiking up her skirt on the steps of a stoop (is that possible?). But the topper was Kim Kardashian eating a messy salad in bed; only to take it into the tub for a bubble bath.

If you think I've gotten away from the point you're wrong. Charles Karcher Enterprises (CKE) who owns both Carl's Jr. and Hardees, knows exactly who buys their upscale hamburgers. The bulk of their customers are young men between the ages of 16 and 24.

And you should see CKE's revenue charts. Most analysts agree that the recession started in December 2007. But if you look at the profit charts of Carl's Jr. and Hardees from December 2007 to today (and I have), you see a nice, steady rise. No dip. No free fall. No reason to think this restaurant was off track. Interestingly, during the recession CKE didn't panic themselves into “2 for the price of 1” deals, “value meals,” or even “extra value meals.” CKE stuck to their big, tasty, gooey burgers, and we were happy to buy in.

While McDonald's, Burger King, and Wendy's battled for the low price family ...