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In burger war, Hardee's strikes back |
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Bill Boddie decided to fight. In Hampton Roads, he’s outnumbered 94 to 34 – McDonald’s, Burger King and Wendy’s.
He’s surrounded and outgunned. Of Boddie’s 13 franchise Hardee’s in Virginia Beach, nine are in view of another fast food unit. Battlefield Boulevard in Chesapeake has six fast food restaurants on one street alone. Nationally, more than half of fast food restaurants are within a mile of a competitor.
For years, the Axis of Burgers beat the tar out of Boddie-Noell Enterprises, a Rocky Mount, N.C., franchisee that had revenue of $370 million last year. Boddie, 50, the company’s chief executive, is a mega-franchisee whose father and uncles got into the business in 1962. He has exclusive franchise rights in Hampton Roads for Hardee’s and runs 316 in Virginia, North Carolina, South Carolina and Kentucky.
In the mid-1990s, customers started going “soft” on Hardee’s. Boddie said sales dropped 2 to 3 percent a year.
Average per-store sales fell $173,000 in a six-year span, from 1995 to 2001. Average profit margins per store in the late 1990s were below 2 percent. The industry average: 20 percent.
Boddie recalled telling his troops in 1997: “We’re not going to sit around and publicly moan and groan. We’re going to make changes.”
Spoken like a businessman. Like a field general.
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Date Listed: 2004-08-10
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Industry: Restaurants
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