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CARL KARCHER ENTERPRISES ANNOUNCES A RESTRUCTURING AND COST CUTTING PLAN

 ANAHEIM, Calif., Jan. 28 /PRNewswire/ -- Carl Karcher Enterprises Inc. (NASDAQ: CARL) today announced it is implementing a restructuring and cost-cutting plan aimed at reducing company expenses by up to $10 million over the next 12 months.
 Included in the plan is a reduction in the corporate workforce of approximately 14 percent of the company's staff of 460. Other major cost-cutting measures include the elimination of approximately $3.5 million in operations-related costs and another $3 million in various corporate expenses.
 "We have a mandate from the board to increase profitability," said Donald E. Doyle, who assumed the post of president and chief executive officer on Jan. 4, 1993. "To achieve this goal requires both a strong marketing effort and a concentrated program to bring costs in line."
 Doyle added that some of the anticipated savings will be reinvested in the business to enhance long-term profitability. Immediate plans call for an increased investment in marketing, advertising and new product development.
 "We have renewed our focus on restaurant operations and enhancing the profitability of company-operated facilities. Near term restaurant expansion plans call for the company opening approximately 10-15 restaurants per year, with the franchise system opening 15-25 restaurants per year. Internationally, our emphasis will be in proven markets such as Mexico," Doyle said, "where our licensees anticipate opening four new restaurants in the new fiscal year.
 "Enhancing our competitive position requires fundamental change," he continued. "We are committed to achieving our goals, while maintaining the excellent food quality and customer service for which we have been known for the past half century."
 Carl Karcher Enterprises Inc. operates Carl's Jr. restaurants, a regional quick-service chain known for its varied menu and healthful, premium quality products. Founded in 1941, the company, its franchisees and licensees operate more than 640 restaurants in California, Nevada, Oregon, Arizona, China, Japan, Malaysia and Mexico. The company has approximately 14,000 employees.
 -0- 1/28/93
 /CONTACT: Loren Pannier of Carl Karcher Enterprises, 714-778-7109; or Susan Klein or Roger S. Pondel of Pondel Parsons & Wilkinson, 310-207-9300, for Carl Karcher Enterprises/
 (CARL)


CO: Carl Karcher Enterprises Inc. ST: California IN: LEI SU: RCN

JB-MS -- LA039 -- 0437 01/28/93 16:14 EST
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Publication:PR Newswire
Date:Jan 28, 1993
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