Consolidation is a popular word in the franchising community at the moment, and talk of it has grown louder now that Wendy’s have been linked with a buyout of CKE Restaurants, who have a number of key franchise possessions in their stable, most notably Hardee’s.
It’s a fascinating development for food franchising should it come to pass. CKE were bought recently by a Boston-based private equity firm, but that doesn’t mean they’re entirely off the market. The question for Wendy’s is pretty simple: why does one massive national burger franchise need to own another one?
Conrad Lyon, a market expert, casts some doubts on the feasibility of the deal in a story in the St Louis Business Journal. But should it come to pass, the move would be a sign of increased consolidation within food franchising and an indicator that there is a lot of value in big burger companies. There are more than 3,000 Hardees restaurants across America. That’s a lot of burgers, and while Wendy’s is doing a good job marketing their own product, they clearly value the Hardee’s experience, either formally and informally.
Keep an eye on this blog for updates on how this burger turns.