This Once-Popular Burger Chain Is Closing More Locations In 2026

A full 10 Carl's Jr. locations are closing for good and 49 more are on shaky ground. The largest California-based Carl's Jr. franchisee, Harshad Dharod, plans to sell his remaining stores after filing for bankruptcy in April. In court, Dharod explained that he was losing more than $600,000 per month despite $6 million in monthly revenue. It's a blow that'll hit the company where it hurts since most of Carl's Jr.'s 1,000 locations are in California.

Both Dharod and Carl's Jr. are pointing fingers in different directions. The franchisee blames Carl's Jr.'s corporate management and California's $20 minimum wage for fast food workers, while the company blames Dharod. "This situation is specific to this individual franchisee's financial and business circumstances," the company told the Los Angeles Times. "This has no impact on the operations of any other Carl's Jr. locations."

Carl's Jr. was founded in 1941, beating out another California burger icon by seven years: In-N-Out, which popularized drive-thru dining, first opened in 1948. Carl's Jr. thrived through the 1950s, '60s, and '70s. Then in the '90s, Carl's Jr. bought Hardee's and launched similar branding across both chains. Now, both Carl's Jr. and Hardee's are struggling to keep up in a competitive fast food burger market.

No matter where the blame actually lies, one thing is clear: Carl's Jr.'s employees are facing the brunt of the problem. In April, members of the California Fast Food Workers Union gathered outside of a North Hollywood location to call for better working conditions. The two employees who joined them complained of long hours, understaffed locations, and violent customers with little support from management. One worker was reportedly punched by a customer and returned to work against doctor's orders days later with a black eye. Fast food employees are asking the city to pass the Fast Food Fair Work Ordinance, which would give workers additional paid leave and require chains to provide full-day training on their legal rights.

Although the restaurants will be sold off, on the bright there appears to already be interest from prospective buyers and both employees and managers would likely keep their jobs in the transition. Still, it's not clear whether a change in management would protect employees. "It's a problem from the top," one Carl's Jr. employee told the Los Angeles Times. "They don't want to spend."