Carls Jr Follows A&W’s Departure from Thailand Closing All 6 Outlets
More sad news for burger lovers as Carls Jr plans to close all 6 branches in Thailand by the end of March. The announcement comes as A&W is set to close its 24 outlets tomorrow.
R&R Restaurant Group which operates the burger chain revealed they could no longer bear the cost to keep Carls Jr open.
The announcement comes 2 weeks after Global Consumer Plc. Announced it was terminating its franchise agreement for the A&W known for its root beer, onion rings, and burgers.
For both companies, the loss of money from the Coronavirus pandemic made it impossible to keep the franchise afloat.
Carls Jr. will cease operations in Thailand at the end of March.
“We really tried to get through it during the pandemic. However, we were forced to import our ingredients solely from the U.S. due to the restrictions imposed by the Carls Jr parent company CKE Restaurants Holdings.”
The first branch of the chain was opened in Thailand at the Central Festival Pattaya Beach in 2012
Carls Jr Follows A&W at Months End
Due to accumulated losses and the impact of the Covid-19 pandemic, the legendary restaurant chain A&W will close on Sunday, March 20 after almost four decades.
The chain’s SET-listed parent company Global Consumer Plc (Glocon) announced the closure due to accumulated losses and the pandemic.
An unnamed sales representative for an A&W restaurant in a Bangkok petrol station said the company informed its employees in advance about the restaurant’s closure, with compensation according to labor laws.
Glocon chief executive Nopporn Phatthararuchi confirmed that all 24 A&W restaurants will close simultaneously on March 20, but the company’s license to operate them expires on March 31.
In 2018, Glocon acquired the master franchise rights to operate A&W restaurants in Thailand through NPP Food Incorporation Co.
The company’s sales of A&W are currently less than 100 million baht, down from almost 200 million baht in 2018.
According to Glocon’s executive chairwoman Louise Taechaubol, the company has delayed investment plans for the restaurant chain for 2020 and 2021 due to A&W’s continuing financial troubles.
To improve its bottom line, A&W has adopted new strategies including selling food trucks at petrol stations instead of the traditional restaurant concept and selling waffles at 7-Eleven convenience stores to grow its customer base.
The company nevertheless suffered an operating loss of 70 million baht in 2021.
