Speaker:
00:00:00
You're scrolling on social media and you see a gloriously stacked,
Speaker:
00:00:04
juice-dripping, cheese-melting Carl's Jr
Speaker:
00:00:08
burger. You think, oh yeah, that's
Speaker:
00:00:12
what I want. Then Carl's Jr launches in
Speaker:
00:00:15
Australia. Cue the hype, the marketing, the
Speaker:
00:00:19
influencers biting into the burgers like they've just seen
Speaker:
00:00:22
heaven. Fast forward a few years and well, where did
Speaker:
00:00:26
they go? Stores are closing. locations disappearing.
Speaker:
00:00:30
So what happened? How did a global burger
Speaker:
00:00:34
giant struggle so hard in a market that
Speaker:
00:00:37
loves big burgers? So today, in this
Speaker:
00:00:41
episode, we're going to break down the missteps, the
Speaker:
00:00:44
missed match expectations, the operational cracks,
Speaker:
00:00:49
and the gold nuggets of wisdom multi-location brands can
Speaker:
00:00:52
steal from Carl's Jr.' 's Australian stumble.
Speaker:
00:00:56
Welcome to The Marketing Factory, where we don't blend in. I'm
Speaker:
00:00:59
Marisa Candy. Founder and recipient of Gold Stevie International
Speaker:
00:01:04
Business Award, among many others. And for over two decades,
Speaker:
00:01:08
I've helped businesses think differently about their marketing and
Speaker:
00:01:11
achieve powerful results. In this podcast, I'll share proven
Speaker:
00:01:15
strategies so that you can create profitable marketing campaigns
Speaker:
00:01:19
that drive real impact for your business. Ready
Speaker:
00:01:22
to become impossible to ignore? Let's get started. All
Speaker:
00:01:25
right, let's kick this off and talk about the hype versus
Speaker:
00:01:29
the reality. When Carl's Jr. entered the Aussie market, the
Speaker:
00:01:33
hype machine was on. Huge
Speaker:
00:01:37
burgers, Hollywood-style marketing, loud
Speaker:
00:01:41
branding, big American personality, a
Speaker:
00:01:44
cult following overseas. It had all the ingredients
Speaker:
00:01:48
for success, except one tiny detail.
Speaker:
00:01:52
Australians love big burgers, but we love
Speaker:
00:01:56
good big burgers. Brands like
Speaker:
00:01:59
Grilled and Betty's Burgers had already
Speaker:
00:02:03
raised the bar. Even Hungry Jack's, they've upped their
Speaker:
00:02:06
game, haven't they? It's like arriving late to
Speaker:
00:02:10
a party thinking your outfit will turn heads, only to realise everyone
Speaker:
00:02:13
else is dressed better than you. Carl's Jr. entered
Speaker:
00:02:17
the market with confidence, but not with competitiveness. Location,
Speaker:
00:02:22
location, oh, location. This
Speaker:
00:02:26
was one of the biggest fail points. Carl's
Speaker:
00:02:30
Jr. stores were often in regional areas. random
Speaker:
00:02:34
highway stops, far out of the way suburbs. Their
Speaker:
00:02:38
strategy was, let's start on the outside cities and build
Speaker:
00:02:42
brand awareness and then move inward. But here's
Speaker:
00:02:45
the problem. Australian's fast food culture is
Speaker:
00:02:48
city first, not region first. If customers can't
Speaker:
00:02:52
try your product easily, they can't fall in love with it, right? And
Speaker:
00:02:56
if they're not falling in love with it, they're definitely not driving two
Speaker:
00:03:00
hours for a burger. They don't
Speaker:
00:03:03
hear anyone saying, right, let's pack
Speaker:
00:03:06
the kids, drive 90 minutes and spiritually prepare
Speaker:
00:03:11
ourselves for Carl's Jr. No one. So
Speaker:
00:03:15
the next problem they had was a pricing problem. Carl's
Speaker:
00:03:19
Jr. positioned itself as a premium fast food
Speaker:
00:03:22
experience, but premium price plus
Speaker:
00:03:26
inconsistent product equals customer
Speaker:
00:03:30
confusion. Many Aussies but finally tried
Speaker:
00:03:33
it said things like, look, it's okay. It's
Speaker:
00:03:37
a bit dry, not worth the price. I
Speaker:
00:03:41
expected more. Ouch. Customers will pay
Speaker:
00:03:44
premium, but they will not pay premium for
Speaker:
00:03:48
average. Their value perception didn't match
Speaker:
00:03:52
their price point. Look at Domino's. They fixed
Speaker:
00:03:55
this by improving the product. Carl's Jr. didn't
Speaker:
00:03:59
quite get there. So now let's move on to their branding disconnect.
Speaker:
00:04:04
Carl's Jr. in the U.S. is known for its bold marketing, playful
Speaker:
00:04:08
humor, the cheeky ads, over-the-top characters. And
Speaker:
00:04:11
in Australia, they just toned everything down, like way
Speaker:
00:04:16
down. It became a watered-down version of
Speaker:
00:04:19
the U.S. identity, which again, confused the Aussie
Speaker:
00:04:23
market. You know, it's like buying a ticket
Speaker:
00:04:27
to go and see Beyonce and instead you get someone singing some
Speaker:
00:04:30
light karaoke in a corner. How do you feel? Betrayed. And
Speaker:
00:04:34
if you're a bold brand, be bold. If you're a premium
Speaker:
00:04:38
brand, be premium. If you're an American style
Speaker:
00:04:41
brand, don't try to become Australian light. Australians
Speaker:
00:04:46
appreciate authenticity and Carl's Jr. didn't
Speaker:
00:04:49
deliver a fully authentic U.S. experience
Speaker:
00:04:53
that we were all anticipating. Just quickly, if
Speaker:
00:04:56
you're a business owner struggling to see results from your marketing or
Speaker:
00:05:00
you're overwhelmed by the thought of marketing your business, we
Speaker:
00:05:03
can help. Book in a call with my team using the link in the show notes
Speaker:
00:05:06
and let's get your brand thriving without the struggle. Now, back
Speaker:
00:05:10
to the episode. Then, this is when
Speaker:
00:05:13
the multi-location chaos truly hit.
Speaker:
00:05:17
Customers were reporting inconsistent quality, slow
Speaker:
00:05:21
service, missing items. Burgers didn't match from store
Speaker:
00:05:24
to store. There was staff training gaps. There was
Speaker:
00:05:28
a lack of strong brand. Systems in multi-locations didn't
Speaker:
00:05:32
land. This, all of this, put it all together, is
Speaker:
00:05:36
death. If every location feels different, customers
Speaker:
00:05:39
just simply won't trust the brand. Domino's. They
Speaker:
00:05:43
won because of consistency. Carl's Jr.
Speaker:
00:05:47
lost because of inconsistency. You
Speaker:
00:05:50
can't claim American quality burgers and then serve six different
Speaker:
00:05:54
versions of the same burger depending on the store. This
Speaker:
00:05:57
is a burger experience. It shouldn't be a surprise. It's not
Speaker:
00:06:00
akin to surprise. It's dinner. Fast
Speaker:
00:06:04
food competition in Australia is fierce at
Speaker:
00:06:07
the moment. If you are in the fast food market, even
Speaker:
00:06:11
in food, hospitality, you know what I'm talking about. Carl's
Speaker:
00:06:15
Jr. wasn't entering a weak market. They were
Speaker:
00:06:18
entering a burger thunderdome. Australia, we've
Speaker:
00:06:22
already got Grilled, the health halo hero, Betty's
Speaker:
00:06:26
Burgers, the cute coastal favorite, and Hungry Jack's
Speaker:
00:06:30
strong loyalty base. Local burger joints, we've
Speaker:
00:06:34
got them kicking around everywhere, don't we? With hipsters, with beards, crafting
Speaker:
00:06:38
these artesian patties. And what did Carl's Jr.
Speaker:
00:06:42
bring? Big, loud, American, but
Speaker:
00:06:46
no unique advantage. they didn't carve a clear brand
Speaker:
00:06:50
position. And remember, a brand without a
Speaker:
00:06:53
strong position becomes background noise. So
Speaker:
00:06:57
what can multi-location brands learn from Carl's Jr mistakes?
Speaker:
00:07:02
And here is the gold. Glad you stuck around. One,
Speaker:
00:07:06
enter the market where your audience actually is. If your target
Speaker:
00:07:10
customers are city-based, build in the city. Okay.
Speaker:
00:07:14
Second, your price must match your value. Premium
Speaker:
00:07:18
marketing can't save average product quality. Number
Speaker:
00:07:22
three, keep your brand identity strong. Don't
Speaker:
00:07:26
dilute your personality just to fit in. Because remember this, difference
Speaker:
00:07:30
stands out. Bland simply disappears. Don't
Speaker:
00:07:34
blend in. Number four, standardise everything.
Speaker:
00:07:38
Your training, quality, process, service,
Speaker:
00:07:43
every store, every day. Number five, stand
Speaker:
00:07:47
for something clear. Why should customers choose
Speaker:
00:07:50
you over competitors? Simple question. And
Speaker:
00:07:54
if you can't answer that, they won't either. Number
Speaker:
00:07:57
six, experience always beats hype. You
Speaker:
00:08:01
can't hype your way out of a poor customer experience. So
Speaker:
00:08:05
to wrap up, Carl's Jr. didn't fail because Australians
Speaker:
00:08:08
don't like American burgers. We absolutely do. We
Speaker:
00:08:12
celebrate them. We romanticize them. we do taste
Speaker:
00:08:16
tests on TikTok just for fun. But Carl's Jr
Speaker:
00:08:19
failed because the product didn't meet expectations, the
Speaker:
00:08:23
stores weren't where customers were, the experience wasn't
Speaker:
00:08:27
consistent and the brand positioning didn't land. This
Speaker:
00:08:31
is a powerful reminder that multi-location success isn't
Speaker:
00:08:36
about the size of your brand, it's about the strength of
Speaker:
00:08:39
your strategy. So if you're planning to expand, open
Speaker:
00:08:43
some new locations or bring a brand to Australia,
Speaker:
00:08:47
you need the right foundation, positioning, consistency,
Speaker:
00:08:52
customer experience. That's exactly what
Speaker:
00:08:56
we help with here at The Marketing Factory. So if you want
Speaker:
00:08:59
some support for a multi-location growth plan,
Speaker:
00:09:04
some brand positioning that actually works, some clarity
Speaker:
00:09:08
before you scale, or a full customer journey assessment, reach
Speaker:
00:09:12
out now. Take action. Connect with me, Marisa Candy,
Speaker:
00:09:15
at The Marketing Factory. And remember, big brands
Speaker:
00:09:19
don't automatically win, but smart strategies do.
Speaker:
00:09:23
Now, I'm hungry. Someone bring me a burger. Thanks
Speaker:
00:09:27
for tuning into The Marketing Factory. If today's episode helped
Speaker:
00:09:30
bring clarity to your marketing strategy, please leave a five-star review
Speaker:
00:09:34
on Apple Podcasts or Spotify. And don't forget to
Speaker:
00:09:37
subscribe on your favorite platform. Stay connected with us
Speaker:
00:09:41
on the socials at The Marketing Factory or at
Speaker:
00:09:44
The Marketing Factory AUS, and let's keep turning clarity