Hardee's, Carl's Jr. Cash in with Backlash Burgers
Wed Dec 15, 7:52 PM ET Health - Reuters
By Nichola Groom
LOS ANGELES (Reuters) - The parent of the Carl's Jr. and Hardee's burger chains is cashing in on consumer backlash against healthier fast-food fare with new premium burgers that make Big Macs look like rabbit food.
While many of its competitors have downplayed traditional burgers in the last two years while scrambling to add lower-fat salads and grilled chicken offerings to their menus, CKE Restaurants Inc. has taken a different approach.
Carl's Jr. on Wednesday introduced the Breakfast Burger, a hamburger topped with a fried egg, hash browns, bacon and cheese, that weighs in at 830 calories and 46 grams of fat.
Hardee's, meanwhile, last month added the Monster Thickburger to its menu. With two one-third-pound beef patties, four strips of bacon, and three slices of cheese, the burger has 1,417 calories and a whopping 107 grams of fat.
McDonald's Corp.'s Big Mac, with 560 calories and 30 grams of fat, doesn't even come close.
"Obviously, the health of its customers is not one of Hardee's top priorities," said Marion Nestle, professor of nutrition at New York University.
The Monster Thickburger has hit a nerve with consumers weary of so-called "food police," said Brad Haley, executive vice president of marketing at Carl's Jr. and Hardee's.
"We don't make what we want to sell, we make what people want to buy," Haley said in an interview. "There is sort of a backlash against political correctness in food."
One Hardee's customer said the Monster Thickburger piqued his interest because it flew in the face of recent trends toward healthier food.
"The fact that they would have the wherewithal to invent a product that could choke a mule is something to be prideful of," said Tim Shea, 43, a magazine publisher from Chicago.
But the burger has also sparked outcry from consumer groups such as the Center for Science in the Public Interest, which called it the "height of corporate irresponsibility."
To be fair, both Hardee's and Carl's Jr. have added healthier fare such as low-carb sandwiches to their menus and Hardee's will introduce a new barbecued chicken sandwich with just 4 grams of fat next week.
But the success of products like the Monster Thickburger and Carl's Jr.'s Pastrami Burger, which cost more than standard fast-food burgers, has sent sales soaring, one expert said.
"It was a very smart move on their part," said Malcolm Knapp, president of restaurant research firm Malcolm M. Knapp Inc. "They are making more money."
CKE on Monday said wider profit margins, helped by the success of premium products, led to higher-than-expected quarterly earnings. The company's stock rose more than 14 percent the following day.
Other burger chains are also responding to consumer clamoring for beefier burgers.
Burger King International Corp. introduced the Angus Steak Burger, made with 100-percent Angus beef, in May as its high-end burger offering. So far, the product has exceeded expectations and is forecast to generate sales of about $500 million a year, according to the company's chief marketing officer, Russ Klein.
"The indulgent burger segment is as robust as it's ever been," Klein said in an interview, adding that sales of Angus Steak Burgers were two or three times those of its salads.
Wendy's International Inc., also, is currently promoting its Wild Mountain Bacon Cheeseburger, with Colby Jack cheese and spicy pepper sauce, though only for a limited time.
But don't expect No. 1 fast-food chain McDonald's, which has enjoyed overwhelming success with meal-sized salads and other new products like fried chicken strips, to get into the premium burger game any time soon, said one expert.
"It seems that McDonald's is marketing more toward families or women with children," said John Beisler, an analyst with Monarch Research. "They haven't been promoting their burger line as much and that strategy seems to be working for them."
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