Hardees Closing: A Look at the Factors Behind the Shutdowns

Hardee's, a popular fast-food chain, has been shutting down locations across the country, leaving many customers wondering what's behind this trend. The chain's parent company, CKE Restaurants, cited declining sales and increased competition as key factors.

The rise of fast-casual restaurants and changing consumer preferences have contributed to Hardee's decline. Many Hardee's locations are being converted into other CKE Restaurants brands, such as Carl's Jr.

In some areas, Hardee's has struggled to compete with local eateries and convenience stores that offer similar menu items at lower prices. This has led to a decline in sales and ultimately, the closure of underperforming locations.

Rising costs of labor are a major contributor to the decline of Hardee's locations.

The bankruptcy filing of Summit Restaurant Holdings, one of Hardee's largest franchisees, cited rising labor costs as a significant factor in their struggles.

Rising labor costs have drained the company of cash flow, making it difficult to maintain profitability.

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According to Daniel Dooley, CEO of MorrisAnderson, smaller profit margins and less foot traffic have also contributed to the decline of business.

Labor costs are increasing by 1-5% in 2024, indicating a trend that may worsen before it improves.

This will make it challenging for Hardee's to maintain profitability and attract new customers.

Hardee's will need to significantly increase its customer base to offset the rising costs of labor.

Hardee's restaurants vanished from at least seven cities in Illinois last year, a trend that hasn't slowed down in 2025.

One of Hardee's largest franchisees, Summit Restaurant Holdings, filed for Chapter 11 bankruptcy and shut down nearly 40 locations across the Midwest and South in 2023.

CKE Restaurants plans to close about 80-120 restaurants before this year's end as part of its "JACK on Track" initiative, with the remaining closures following suit based on individual franchise contract expiration dates.

Rising costs of food are a significant challenge for Hardee's locations. Rising food costs are a major contributor to the decline of Hardee's business.

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According to court documents, Summit struggled with declining traffic during the pandemic and subsequent pressures on rising food costs. This drained the company of cash flow.

The State of the Industry study revealed that costs across the board in the industry are going up, from 1%-5% in 2024, on both the supply side and the labor side. This trend is expected to continue.

Rising food costs are a widespread issue, affecting not just Hardee's but nearly every sector of the economy.

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The Millvale Hardee's location closed its doors after 52 years in business, leaving behind countless memories for the community.

Regulars like Bill Dreyer, who came daily since the first day the Hardee's location opened, will miss the restaurant dearly. He even had a table reserved with his name on it.

The restaurant was a staple in the Millvale business district, located at a busy intersection of three roads. It's a loss for the community, which will always remember it.

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Former Millvale Mayor Jim Burn posted on social media about the closing, calling Hardee's a cornerstone of the community and saying many people who live in Millvale and Shaler have worked there over the years. He expressed sadness for the employees who had only hours' notice before shutting the doors for good.

The owner's son acknowledged it was tough to close this place, but they appreciate how much it meant to the community. He hopes another food business moves in, but that's still uncertain.

The closure of the Millvale Hardee's leaves only one other location in the Pittsburgh area, located in Waynesburg.