Fresh blow for California’s Carl’s Jr as iconic burger chain to close more stores

Carl’s Jr. is being hit with another brutal blow in California as 10 more restaurants are now set to close — and dozen more could be sold off.

Franchisee Harsbad Dharod, whose company operates 59 restaurants across California, is seeking buyers for most of his stores after filing for Chapter 11 bankruptcy protection in April, according to the DailyMail.

The operator plans to close 10 locations outright while putting the rest of the restaurants on the market, according to brokerage firm National Franchise Sales.

The restaurants are largely concentrated in Southern California, where Carl’s Jr. has long been a fast-food fixture.

A previous report read that Dharod’s subsidiary Sun Gir Inc. blamed California’s $20-an-hour fast-food minimum wage for worsening financial distress.

Dharod said in court filings that the wage hike “materially increased operating expenses,” while also citing weaker sales, reduced marketing effectiveness and a lack of innovation from Carl’s Jr. parent company.

Despite generating more than $6 million in monthly revenue, the franchise group has reportedly been losing more than $600,000 per month this year.

SKE Restaurants, the parent company of Carl’s Jr., said the crisis is specific to the franchisee and does not affect the wider chain.

“This situation is specific to this individual franchisee’s financial and business circumstances,” the company said. “This has no impact on the operations of any other Carl’s Jr. locations.”

The possible closures mark another setback for the California-born chain, which traces its roots to 1941, when founder Carl Karcher launched a hot dog cart at Florence and Central avenues in Los Angeles.

Carl’s Jr. later grew into one of the West Coast’s most recognizable fast-food brands, known for its charbroiled burgers, Famous Star, Western Bacon Cheeseburger and smiling yellow star logo.

But its California footprint has been shrinking.

Franchise disclosure documents show Carl’s Jr.had 613 California locations in 2023, compared with 588 in 2025, according to the DailyMail.

National Franchise Sales said there has already been interest from potential buyers, raising hopes that many of the restaurants could stay open under new ownership.

For now, the future of dozens of Carl’s Jr. restaurants remains uncertain as the bankruptcy process unfolds.

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