CKE Restaurants, the parent company of quick-service chains Carl’s Jr. and Hardee’s, has said it has furloughed about 30% of its employees at its headquarters in Franklin, Tenn.
“Our business has felt the impact of fewer customers due to COVID-19,” a spokesman said. “Dining room closures and movement restrictions — though necessary in helping prevent further virus spread — have nonetheless posed an unprecedented challenge to our business.”
The spokesperson said furloughed employees would continue to receive full health care benefits, and that CKE would cover both employer and employee premiums.
A report in the Nashville Post put the total number of layoffs at 95 people.
“We couldn’t be more proud of the work they’ve done and it is our goal to welcome employees back when this challenging period abates,” the spokesperson said.
“It has been a shared sacrifice across the organization as we focus on preserving the essential functions of our operations. We know that the path to recovery will require patience, perseverance, and creativity. We hope and expect this will be temporary and look forward to restoring our operations to full strength soon.”
Most of the roughly 1,850 Hardee’s and 1,120 Carl’s Jr. locations continue to provide drive-thru, takeout and delivery services, the spokesperson said.
CKE is just the latest restaurant company to furlough office staff as they face declining sales as dining rooms close and customers stay at home during the COVID-19 pandemic.
Dine Brands Global, parent company of Applebee’s Grill & Bar and IHOP also announced furloughs of office staff. Casual-dining chain Red Robin also cut corporate jobs, as did fast-casual Noodles & Company.
Family Dining chain First Watch furloughed hourly workers and subsequently decided to shutter all corporate locations.
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