Carl’s Jr. launches 'Pass on Jack' campaign to lure customers from rival chain

Carl’s Jr., owned by Nashville-based CKE Restaurants, has initiated a marketing campaign titled 'Pass on Jack' designed to target its primary rival, Jack in the Box. The promotion, which commenced on Tuesday, rewards members of the Carl’s Jr. loyalty program with a free Sourdough Star burger. To qualify, customers must submit evidence via the Carl’s Jr. app, such as a GPS screenshot, demonstrating they drove past a Jack in the Box location en route to a Carl’s Jr.

Qualifying submissions can be redeemed until July 7. The campaign capitalises on the historical rivalry between the two California-centric chains, both of which have faced significant headwinds in recent years. Industry-wide challenges, including reduced fast-food visits and high operational costs in California, have prompted aggressive marketing strategies to retain customer base.

Paz Romero, vice-president of brand marketing for Carl’s, stated the initiative aims to reward customers for choosing Carl’s over competitors during road trips. "When hunger strikes on a road trip, it's tempting to pull over at the first burger joint you see," Romero said. "This summer, we know our loyal fans and new customers are bound to drive by a Carl's Jr., so we want to reward them for stopping at the best burger option on the road."

The Sourdough Star burger, which is being promoted through this campaign, features a charbroiled patty, two strips of bacon, classic sauce, grilled onions, melted American cheese, lettuce, tomato, and mayonnaise on toasted sourdough bread. The item was reintroduced last month for a limited time before being featured in the current promotion.

Both chains have deep historical ties to California. Jack in the Box was founded in San Diego in 1951 by Robert Peterson and currently operates 938 locations in the state, representing 44% of its more than 2,100 US locations. Carl’s Jr. was founded in Anaheim in 1956 by Carl and Margaret Karcher and has 629 locations in California, accounting for 63.4% of its 992 US locations.

Financial performance has been challenging for both operators. Carl’s Jr. reported a 6% fall in US system sales and closed nearly 4% of its domestic locations, although its international location count grew by 6.9% last year. Jack in the Box, overseen by interim CEO Mark King, saw sales fall 4.3% last year and closed 2.5% of its US restaurants.

The 'Pass on Jack' campaign highlights the intense competition between the two chains as they navigate a difficult retail environment. By incentivising customers to bypass a rival location, Carl’s Jr. is attempting to capture market share in a sector where consumer spending on fast food has tightened.