CKE Press Release
April 14, 2016
CKE RESTAURANTS SIGNS IMPRESSIVE DOMESTIC FRANCHISE DEVELOPMENT DEAL WITH PAVILION RESTAURANT GROUPAgreement will develop 124 Hardee’s restaurants throughout Ohio and Florida over the next nine to 12 years
CARPINTERIA, Calif.--(BUSINESS WIRE)--CKE Restaurants Holdings, Inc. (“CKE”), parent company of Carl’s Jr.® and Hardee’s® restaurant chains, announced today that they have signed an impressive domestic franchise development deal with Pavilion Restaurant Group (“PRG”), an affiliate of Pavilion Development Company. The Charlotte, North Carolina-based restaurant operating company, is set to develop and open 124 Hardee’s restaurants throughout Ohio and Florida over the next nine to 12 years.
The Pavilion deal is structured under one agreement with two development schedules. In Ohio, Pavilion will build 84 Hardee’s restaurants in Cincinnati, Columbus, Cleveland, Toledo, Youngstown and Dayton. In Florida, the company will develop 40 Hardee’s in Orlando, West Palm Beach and Fort Myers.
“With their unparalleled expertise in the built-to-suit space, along with their plans for creative land use design and tenant demand aggregation, we are confident that Pavilion will help to further solidify our Hardee’s franchise footprint in these two key states,” said Jim Sullivan, executive vice president of domestic development for Carl’s Jr. and Hardee’s. “We are excited to be able to expand franchises in Ohio and Florida and introduce more ‘young, hungry guys’ to our bigger, better burgers and other innovative menu items.”
Pavilion will handle all aspects of this new development process from site selection to right-to-build research to leasing and construction for both Carl’s Jr. and Hardee’s. Of further note, the Hardee’s division will be led by Dick Campbell, a restaurant veteran who has held senior executive level positions at KFC® and who was formerly the CEO of Bojangles®.
“We were attracted to the Hardee’s brand for several reasons. The brand is owned and managed by a successful team, CKE Restaurants and Roark Capital, and offers cook-to-order premium quality food, including the only line of 100 percent Black Angus Thickburgers in the QSR space,” explained Dick Campbell. “Hardee’s also has a well-defined target market of males aged 18-34 – and those who desire to eat like an 18-34 year old ‘young, hungry, guy’! The Hardee’s brand also provides best-in-class customer service. When you combine these key elements with the brand’s major growth potential, specifically in the agile markets of Ohio and Florida, you have an attractive and winning real estate development deal.”
About CKE Restaurants Holdings, Inc.
CKE Restaurants Holdings, Inc. (“CKE”) is a privately held company headquartered in Carpinteria, Calif. Through its subsidiaries, CKE owns and licenses Carl’s Jr.® and Hardee’s® quick-service restaurants. CKE operates Carl’s Jr. and Hardee’s as one brand under two names acknowledging the regional heritage of both banners. After opening its first restaurants in New York and New Jersey this spring and recent international openings in Canada, Colombia and Guatemala, CKE now has a total of 3,674 franchised or company-operated restaurants in 44 states and 38 foreign countries and U.S. territories. Known for its one-of-a-kind premium menu items such as 100 percent Black Angus Thickburgers®, Made from Scratch™ Biscuits, Hand-Breaded Chicken Tenders™ and Fresh Baked Buns, as well as an award-winning marketing approach, the Carl’s Jr./Hardee’s brand continues to deliver substantial and consistent growth in the U.S. and overseas. The Carl’s Jr./Hardee’s system is now 92 percent franchised, with international restaurants representing 19 percent of the system. For more information about CKE, please visit www.ckr.com or its brand sites at www.carlsjr.com and www.hardees.com.
About Pavilion Restaurant Group
Pavilion Restaurant Group (“PRG”) is a privately held company headquartered in Charlotte NC. Through its affiliates, PRG will own and operate restaurants under the licensing of the Hardee’s® brand and other restaurant concepts. PRG is an affiliate of Pavilion Development Company, also headquartered in Charlotte, NC. Pavilion Development Company was founded by Richard Davies in 1997, a third-generation real estate developer. Pavilion Development Company is a real estate investment and development company with expertise in single-tenant build-to-suit development for successful multi-location operating companies. For more information about Pavilion Development Company, please visit www.paviliondevelopment.com .