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Like most restaurants, Carl\u2019s Jr. has been struggling to attract customers at a time when many are increasingly concerned about inflation and the health of the economy. Above, a customer in the drive-through of a Carl\u2019s Jr. in North Hollywood in April 21, 2026.<\/p>\n
(Jason Armond \/ Los Angeles Times)<\/p>\n<\/p><\/div>\n<\/figure><\/div>\n
The economic strain has rippled through legacy fast-food chains like never before, said Rodriguez, who expects some brands will buckle under the pressure. <\/p>\n
Carl\u2019s Jr.\u2019s U.S. network of restaurants shrank 3% in 2024, according to the company\u2019s franchise disclosure document. The Hardee\u2019s network shrank more than 10% from the start of 2023 and the end of 2025. A major Hardee\u2019s franchise operator shuttered 77 locations in December.<\/p>\n
Franchisee Dharod told the bankruptcy court that business had become particularly bad in the last two years, leaving him without enough cash on hand to cover wages, rent, supplies and insurance. Although his outlets have generated more than $6 million in monthly revenue, they have been losing more than $600,000 per month this year. <\/p>\n
Without protection from the court and the ability to use his daily cash flow to meet those needs, he could lose his employees and franchise rights, he said. <\/p>\n
\u201cIf payroll is not paid or vendors cease delivering goods, the debtors would be forced to shut down restaurant operations within a matter of days,\u201d he said in the court document.<\/p>\n
Carl\u2019s Jr. workers say they are feeling the heat and have staged multiple walkouts in recent months to bring attention to their concerns. They are not getting the staff, supplies, training or security they need, said Yadeli Caldera, a 22-year-old Carl\u2019s Jr. worker. <\/p>\n
She is typically the only person working the overnight shift in Chatsworth and often encounters violent customers. She recently feared for her life when a customer was angry about an order.<\/p>\n
\u201cHe started yelling in my face, hit his car horn and seemed like he was about to get out of his car to come towards me,\u201d Caldera told The Times. \u201cIt\u2019s scary, because if an emergency happens, what do I do? What if I\u2019m already dying on the floor? I don\u2019t have someone else with me. I\u2019m alone.\u201d<\/p>\n
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Members of Service Employees International Union Local 721 protest in support of workers outside a Carl\u2019s Jr. in North Hollywood on May 8, 2026.<\/p>\n
(Myung J. Chun \/ Los Angeles Times)<\/p>\n<\/p><\/div>\n<\/figure><\/div>\n
Some workers say they now have to do the work of multiple people, which is leading to on-the-job injuries. <\/p>\n
Workers detailed violent interactions with customers, including robberies and physical assaults, and said the company didn\u2019t provide safety training. Angry customers throw drinks at employees, according to complaints filed by workers to Cal\/OSHA and the California Labor Commissioner\u2019s Office. <\/p>\n
Yolanda Cruz, who has worked at Carl\u2019s Jr. for 20 years, says employees are regularly harassed by customers. One morning, a man jumped at her as she tried to enter the restaurant. <\/p>\n
\u201cWhat else can we do? Just pray to God that how we get to work is the same way we return home at the end of the day,\u201d Cruz told The Times in Spanish. \u201cThis is the fear we have all the time.\u201d<\/p>\n
Juana Rocha is almost always the sole cook working during her night shift. Her hands work against the clock to manage the grill and fryer, wash dishes, mop the floors, prep the salsa and guacamole, package the food and bag the meals \u2014 a job that should be done by at least three people, she said. <\/p>\n
\u201cThey treat us like animals,\u201d Rocha told The Times during a protest led by the state\u2019s fast-food union. \u201cWe\u2019re raising our voice because if we don\u2019t make them hear us, this treatment will never end.\u201d<\/p>\n
The Carl\u2019s Jr. spokesperson said that the franchisee is responsible for any cost-cutting and for managing workers who do not work directly for the national chain. <\/p>\n
\u201cStaffing decisions are made by the franchisee operator, so it is inaccurate to link the issues with Carls Jr., the corporation,\u201d she said. <\/p>\n
The franchise operator who filed for bankruptcy and runs the branches where workers protested didn\u2019t respond to requests for comment.<\/p>\n
The company has been trying to build buzz around the brand this year with a Super Bowl-connected burger giveaway. It returned to its roots with some racy commercials featuring social media star Alix Earle and a cameo from Paris Hilton.<\/a> <\/p>\nCKE said its western bacon chicken sandwich has been popular, and a growing number of potential customers have been clicking on its content. <\/p>\n
\u201cCarl\u2019s Jr. continues to see positive momentum in marketing efforts that have engaged and attracted new guests,\u201d the spokesperson said.<\/p>\n
A higher minimum wage means the chain has to cut back on other costs or convince customers to pay more, said James Vitrano, a restaurant executive who leads efforts to stabilize struggling restaurants for Dorset Partners. <\/p>\n
\u201cYou\u2019ve got some great burgers in L.A.,\u201d he said. \u201cNobody really knows where Carl\u2019s Jr. stands anymore.\u201d<\/p>\n<\/p><\/div>\n