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FAST FOOD NATION.
what the all-american meal is doing to the world.
by ERIC SCHLOSSER.
introduction.
CHEYENNE MOUNTAIN SITS on the eastern slope of Colorado's Front Range, rising steeply from the prairie and overlooking the city of Colorado Springs. From a distance, the mountain appears beautiful and serene, dotted with rocky outcroppings, scrub oak, and ponderosa pine. It looks like the backdrop of an old Hollywood western, just another gorgeous Rocky Mountain vista. And yet Cheyenne Mountain is hardly pristine. One of the nation's most important military installations lies deep within it, housing units of the North American Aeros.p.a.ce Command, the Air Force s.p.a.ce Command, and the United States s.p.a.ce Command. During the mid-1950s, high-level officials at the Pentagon worried that America's air defenses had become vulnerable to sabotage and attack. Cheyenne Mountain was chosen as the site for a top-secret, underground combat operations center. The mountain was hollowed out, and fifteen buildings, most of them three stories high, were erected amid a maze of tunnels and pa.s.sageways extending for miles. The four-and-a-half-acre underground complex was designed to survive a direct hit by an atomic bomb. Now officially called the Cheyenne Mountain Air Force Station, the facility is entered through steel blast doors that are three feet thick and weigh twenty-five tons each; they automatically swing shut in less than twenty seconds. The base is closed to the public, and a heavily armed quick response team guards against intruders. Pressurized air within the complex prevents contamination by radioactive fallout and biological weapons. The buildings are mounted on gigantic steel springs to ride out an earthquake or the blast wave of a thermonuclear strike. The hallways and staircases are painted slate gray, the ceilings are low, and there are combination locks on many of the doors. A narrow escape tunnel, entered through a metal hatch, twists and turns its way out of the mountain through solid rock. The place feels like the set of an early James Bond movie, with men in jumpsuits driving little electric vans from one brightly lit cavern to another. on the eastern slope of Colorado's Front Range, rising steeply from the prairie and overlooking the city of Colorado Springs. From a distance, the mountain appears beautiful and serene, dotted with rocky outcroppings, scrub oak, and ponderosa pine. It looks like the backdrop of an old Hollywood western, just another gorgeous Rocky Mountain vista. And yet Cheyenne Mountain is hardly pristine. One of the nation's most important military installations lies deep within it, housing units of the North American Aeros.p.a.ce Command, the Air Force s.p.a.ce Command, and the United States s.p.a.ce Command. During the mid-1950s, high-level officials at the Pentagon worried that America's air defenses had become vulnerable to sabotage and attack. Cheyenne Mountain was chosen as the site for a top-secret, underground combat operations center. The mountain was hollowed out, and fifteen buildings, most of them three stories high, were erected amid a maze of tunnels and pa.s.sageways extending for miles. The four-and-a-half-acre underground complex was designed to survive a direct hit by an atomic bomb. Now officially called the Cheyenne Mountain Air Force Station, the facility is entered through steel blast doors that are three feet thick and weigh twenty-five tons each; they automatically swing shut in less than twenty seconds. The base is closed to the public, and a heavily armed quick response team guards against intruders. Pressurized air within the complex prevents contamination by radioactive fallout and biological weapons. The buildings are mounted on gigantic steel springs to ride out an earthquake or the blast wave of a thermonuclear strike. The hallways and staircases are painted slate gray, the ceilings are low, and there are combination locks on many of the doors. A narrow escape tunnel, entered through a metal hatch, twists and turns its way out of the mountain through solid rock. The place feels like the set of an early James Bond movie, with men in jumpsuits driving little electric vans from one brightly lit cavern to another.
Fifteen hundred people work inside the mountain, maintaining the facility and collecting information from a worldwide network of radars, spy satellites, ground-based sensors, airplanes, and blimps. The Cheyenne Mountain Operations Center tracks every manmade object that enters North American airs.p.a.ce or that orbits the earth. It is the heart of the nation's early warning system. It can detect the firing of a long-range missile, anywhere in the world, before that missile has left the launch pad.
This futuristic military base inside a mountain has the capability to be self-sustaining for at least one month. Its generators can produce enough electricity to power a city the size of Tampa, Florida. Its underground reservoirs hold millions of gallons of water; workers sometimes traverse them in rowboats. The complex has its own underground fitness center, a medical clinic, a dentist's office, a barbershop, a chapel, and a cafeteria. When the men and women stationed at Cheyenne Mountain get tired of the food in the cafeteria, they often send somebody over to the Burger King at Fort Carson, a nearby army base. Or they call Domino's.
Almost every night, a Domino's deliveryman winds his way up the lonely Cheyenne Mountain Road, past the ominous DEADLY FORCE AUTHORIZED DEADLY FORCE AUTHORIZED signs, past the security checkpoint at the entrance of the base, driving toward the heavily guarded North Portal, tucked behind chain link and barbed wire. Near the spot where the road heads straight into the mountainside, the delivery man drops off his pizzas and collects his tip. And should Armageddon come, should a foreign enemy someday shower the United States with nuclear warheads, laying waste to the whole continent, entombed within Cheyenne Mountain, along with the high-tech marvels, the pale blue jumpsuits, comic books, and Bibles, future archeologists may find other clues to the nature of our civilization - Big King wrappers, hardened crusts of Cheesy Bread, Barbeque Wing bones, and the red, white, and blue of a Domino's pizza box. signs, past the security checkpoint at the entrance of the base, driving toward the heavily guarded North Portal, tucked behind chain link and barbed wire. Near the spot where the road heads straight into the mountainside, the delivery man drops off his pizzas and collects his tip. And should Armageddon come, should a foreign enemy someday shower the United States with nuclear warheads, laying waste to the whole continent, entombed within Cheyenne Mountain, along with the high-tech marvels, the pale blue jumpsuits, comic books, and Bibles, future archeologists may find other clues to the nature of our civilization - Big King wrappers, hardened crusts of Cheesy Bread, Barbeque Wing bones, and the red, white, and blue of a Domino's pizza box.
what we eat.
OVER THE LAST THREE DECADES, fast food has infiltrated every nook and cranny of American society. An industry that began with a handful of modest hot dog and hamburger stands in southern California has spread to every corner of the nation, selling a broad range of foods wherever paying customers may be found. Fast food is now served at restaurants and drive-throughs, at stadiums, airports, zoos, high schools, elementary schools, and universities, on cruise ships, trains, and airplanes, at K-Marts, Wal-Marts, gas stations, and even at hospital cafeterias. In 1970, Americans spent about $6 billion on fast food; in 2001, they spent more than $110 billion. Americans now spend more money on fast food than on higher education, personal computers, computer software, or new cars. They spend more on fast food than on movies, books, magazines, newspapers, videos, and recorded music - combined.
Pull open the gla.s.s door, feel the rush of cool air, walk in, get on line, study the backlit color photographs above the counter, place your order, hand over a few dollars, watch teenagers in uniforms pushing various b.u.t.tons, and moments later take hold of a plastic tray full of food wrapped in colored paper and cardboard. The whole experience of buying fast food has become so routine, so thoroughly unexceptional and mundane, that it is now taken for granted, like brushing your teeth or stopping for a red light. It has become a social custom as American as a small, rectangular, hand-held, frozen, and reheated apple pie.
This is a book about fast food, the values it embodies, and the world it has made. Fast food has proven to be a revolutionary force in American life; I am interested in it both as a commodity and as a metaphor. What people eat (or don't eat) has always been determined by a complex interplay of social, economic, and technological forces. The early Roman Republic was fed by its citizen-farmers; the Roman Empire, by its slaves. A nation's diet can be more revealing than its art or literature. On any given day in the United States about one-quarter of the adult population visits a fast food restaurant. During a relatively brief period of time, the fast food industry has helped to transform not only the American diet, but also our landscape, economy, workforce, and popular culture. Fast food and its consequences have become inescapable, regardless of whether you eat it twice a day, try to avoid it, or have never taken a single bite.
The extraordinary growth of the fast food industry has been driven by fundamental changes in American society. Adjusted for inflation, the hourly wage of the average U.S. worker peaked in 1973 and then steadily declined for the next twenty-five years. During that period, women entered the workforce in record numbers, often motivated less by a feminist perspective than by a need to pay the bills. In 1975, about one-third of American mothers with young children worked outside the home; today almost two-thirds of such mothers are employed. As the sociologists Cameron Lynne Macdonald and Carmen Sirianni have noted, the entry of so many women into the workforce has greatly increased demand for the types of services that housewives traditionally perform: cooking, cleaning, and child care. A generation ago, three-quarters of the money used to buy food in the United States was spent to prepare meals at home. Today about half of the money used to buy food is spent at restaurants - mainly at fast food restaurants.
The McDonald's Corporation has become a powerful symbol of America's service economy, which is now responsible for 90 percent of the country's new jobs. In 1968, McDonald's operated about one thousand restaurants. Today it has about thirty thousand restaurants worldwide and opens almost two thousand new ones each year. An estimated one out of every eight workers in the United States has at some point been employed by McDonald's. The company annually hires about one million people, more than any other American organization, public or private. McDonald's is the nation's largest purchaser of beef, pork, and potatoes - and the second largest purchaser of chicken. The McDonald's Corporation is the largest owner of retail property in the world. Indeed, the company earns the majority of its profits not from selling food but from collecting rent. McDonald's spends more money on advertising and marketing than any other brand. As a result it has replaced Coca-Cola as the world's most famous brand. McDonald's operates more playgrounds than any other private ent.i.ty in the United States. It is one of the nation's largest distributors of toys. A survey of American schoolchildren found that 96 percent could identify Ronald McDonald. The only fictional character with a higher degree of recognition was Santa Claus. The impact of McDonald's on the way we live today is hard to overstate. The Golden Arches are now more widely recognized than the Christian cross.
In the early 1970s, the farm activist Jim Hightower warned of "the McDonaldization of America." He viewed the emerging fast food industry as a threat to independent businesses, as a step toward a food economy dominated by giant corporations, and as a h.o.m.ogenizing influence on American life. In Eat Your Heart Out Eat Your Heart Out (1975), he argued that "bigger is (1975), he argued that "bigger is not not better." Much of what Hightower feared has come to pa.s.s. The centralized purchasing decisions of the large restaurant chains and their demand for standardized products have given a handful of corporations an unprecedented degree of power over the nation's food supply. Moreover, the tremendous success of the fast food industry has encouraged other industries to adopt similar business methods. The basic thinking behind fast food has become the operating system of today's retail economy, wiping out small businesses, obliterating regional differences, and spreading identical stores throughout the country like a self-replicating code. better." Much of what Hightower feared has come to pa.s.s. The centralized purchasing decisions of the large restaurant chains and their demand for standardized products have given a handful of corporations an unprecedented degree of power over the nation's food supply. Moreover, the tremendous success of the fast food industry has encouraged other industries to adopt similar business methods. The basic thinking behind fast food has become the operating system of today's retail economy, wiping out small businesses, obliterating regional differences, and spreading identical stores throughout the country like a self-replicating code.
America's main streets and malls now boast the same Pizza Huts and Taco Bells, Gaps and Banana Republics, Starbucks and Jiffy-Lubes, Foot Lockers, Snip N' Clips, Sungla.s.s Huts, and Hobbytown USAs. Almost every facet of American life has now been franchised or chained. From the maternity ward at a Columbia/HCA hospital to an embalming room owned by Service Corporation International - "the world's largest provider of death care services," based in Houston, Texas, which since 1968 has grown to include 3,823 funeral homes, 523 cemeteries, and 198 crematoriums, and which today handles the final remains of one out of every nine Americans - a person can now go from the cradle to the grave without spending a nickel at an independently owned business.
The key to a successful franchise, according to many texts on the subject, can be expressed in one word: "uniformity." Franchises and chain stores strive to offer exactly the same product or service at numerous locations. Customers are drawn to familiar brands by an instinct to avoid the unknown. A brand offers a feeling of rea.s.surance when its products are always and everywhere the same. "We have found out... that we cannot trust some people who are nonconformists," declared Ray Kroc, one of the founders of McDonald's, angered by some of his franchisees. "We will make conformists out of them in a hurry... The organization cannot trust the individual; the individual must trust the organization."
One of the ironies of America's fast food industry is that a business so dedicated to conformity was founded by iconoclasts and self-made men, by entrepreneurs willing to defy conventional opinion. Few of the people who built fast food empires ever attended college, let alone business school. They worked hard, took risks, and followed their own paths. In many respects, the fast food industry embodies the best and the worst of American capitalism at the start of the twenty-first century - its constant stream of new products and innovations, its widening gulf between rich and poor. The industrialization of the restaurant kitchen has enabled the fast food chains to rely upon a low-paid and unskilled workforce. While a handful of workers manage to rise up the corporate ladder, the vast majority lack full-time employment, receive no benefits, learn few skills, exercise little control over their workplace, quit after a few months, and float from job to job. The restaurant industry is now America's largest private employer, and it pays some of the lowest wages. During the economic boom of the 1990s, when many American workers enjoyed their first pay raises in a generation, the real value of wages in the restaurant industry continued to fall. The roughly 3.5 million fast food workers are by far the largest group of minimum wage earners in the United States. The only Americans who consistently earn a lower hourly wage are migrant farm workers.
A hamburger and french fries became the quintessential American meal in the 1950s, thanks to the promotional efforts of the fast food chains. The typical American now consumes approximately three hamburgers and four orders of french fries every week. But the steady barrage of fast food ads, full of thick juicy burgers and long golden fries, rarely mentions where these foods come from nowadays or what ingredients they contain. The birth of the fast food industry coincided with Eisenhower-era glorifications of technology, with optimistic slogans like "Better Living through Chemistry" and "Our Friend the Atom." The sort of technological wizardry that Walt Disney promoted on television and at Disneyland eventually reached its fulfillment in the kitchens of fast food restaurants. Indeed, the corporate culture of McDonald's seems inextricably linked to that of the Disney empire, sharing a reverence for sleek machinery, electronics, and automation. The leading fast food chains still embrace a boundless faith in science - and as a result have changed not just what Americans eat, but also how their food is made.
The current methods for preparing fast food are less likely to be found in cookbooks than in trade journals such as Food Technologist Food Technologist and and Food Engineering Food Engineering. Aside from the salad greens and tomatoes, most fast food is delivered to the restaurant already frozen, canned, dehydrated, or freeze-dried. A fast food kitchen is merely the final stage in a vast and highly complex system of ma.s.s production. Foods that may look familiar have in fact been completely reformulated. What we eat has changed more in the last forty years than in the previous forty thousand. Like Cheyenne Mountain, today's fast food conceals remarkable technological advances behind an ordinary-looking facade. Much of the taste and aroma of American fast food, for example, is now manufactured at a series of large chemical plants off the New Jersey Turnpike.
In the fast food restaurants of Colorado Springs, behind the counters, amid the plastic seats, in the changing landscape outside the window, you can see all the virtues and destructiveness of our fast food nation. I chose Colorado Springs as a focal point for this book because the changes that have recently swept through the city are emblematic of those that fast food - and the fast food mentality - have encouraged throughout the United States. Countless other suburban communities, in every part of the country, could have been used to ill.u.s.trate the same points. The extraordinary growth of Colorado Springs neatly parallels that of the fast food industry: during the last few decades, the city's population has more than doubled. Subdivisions, shopping malls, and chain restaurants are appearing in the foothills of Cheyenne Mountain and the plains rolling to the east. The Rocky Mountain region as a whole has the fastest-growing economy in the United States, mixing high-tech and service industries in a way that may define America's workforce for years to come. And new restaurants are opening there at a faster pace than anywhere else in the nation.
Fast food is now so commonplace that it has acquired an air of inevitability, as though it were somehow unavoidable, a fact of modern life. And yet the dominance of the fast food giants was no more preordained than the march of colonial split-levels, golf courses, and man-made lakes across the deserts of the American West. The political philosophy that now prevails in so much of the West - with its demand for lower taxes, smaller government, an unbridled free market - stands in total contradiction to the region's true economic underpinnings. No other region of the United States has been so dependent on government subsidies for so long, from the nineteenth-century construction of its railroads to the twentieth-century financing of its military bases and dams. One historian has described the federal government's 1950s highway-building binge as a case study in "interstate socialism" - a phrase that aptly describes how the West was really won. The fast food industry took root alongside that interstate highway system, as a new form of restaurant sprang up beside the new off-ramps. Moreover, the extraordinary growth of this industry over the past quarter-century did not occur in a political vacuum. It took place during a period when the inflation-adjusted value of the minimum wage declined by about 40 percent, when sophisticated ma.s.s marketing techniques were for the first time directed at small children, and when federal agencies created to protect workers and consumers too often behaved like branch offices of the companies that were supposed to be regulated. Ever since the administration of President Richard Nixon, the fast food industry has worked closely with its allies in Congress and the white House to oppose new worker safety, food safety, and minimum wage laws. While publicly espousing support for the free market, the fast food chains have quietly pursued and greatly benefited from a wide variety of government subsidies. Far from being inevitable, America's fast food industry in its present form is the logical outcome of certain political and economic choices.
In the potato fields and processing plants of Idaho, in the ranch-lands east of Colorado Springs, in the feedlots and slaughterhouses of the High Plains, you can see the effects of fast food on the nation's rural life, its environment, its workers, and its health. The fast food chains now stand atop a huge food-industrial complex that has gained control of American agriculture. During the 1980s, large multinationals - such as Cargill, ConAgra, and IBP - were allowed to dominate one commodity market after another. Farmers and cattle ranchers are losing their independence, essentially becoming hired hands for the agribusiness giants or being forced off the land. Family farms are now being replaced by gigantic corporate farms with absentee owners. Rural communities are losing their middle cla.s.s and becoming socially stratified, divided between a small, wealthy elite and large numbers of the working poor. Small towns that seemingly belong in a Norman Rockwell painting are being turned into rural ghettos. The hardy, independent farmers whom Thomas Jefferson considered the bedrock of American democracy are a truly vanishing breed. The United States now has more prison inmates than full-time farmers.
The fast food chains' vast purchasing power and their demand for a uniform product have encouraged fundamental changes in how cattle are raised, slaughtered, and processed into ground beef. These changes have made meatpacking - once a highly skilled, highly paid occupation - into the most dangerous job in the United States, performed by armies of poor, transient immigrants whose injuries often go unrecorded and uncompensated. And the same meat industry practices that endanger these workers have facilitated the introduction of deadly pathogens, such as E. coli E. coli 0157:H7, into America's hamburger meat, a food aggressively marketed to children. Again and again, efforts to prevent the sale of tainted ground beef have been thwarted by meat industry lobbyists and their allies in Congress. The federal government has the legal authority to recall a defective toaster oven or stuffed animal - but still lacks the power to recall tons of contaminated, potentially lethal meat. 0157:H7, into America's hamburger meat, a food aggressively marketed to children. Again and again, efforts to prevent the sale of tainted ground beef have been thwarted by meat industry lobbyists and their allies in Congress. The federal government has the legal authority to recall a defective toaster oven or stuffed animal - but still lacks the power to recall tons of contaminated, potentially lethal meat.
I do not mean to suggest that fast food is solely responsible for every social problem now haunting the United States. In some cases (such as the malling and sprawling of the West) the fast food industry has been a catalyst and a symptom of larger economic trends. In other cases (such as the rise of franchising and the spread of obesity) fast food has played a more central role. By tracing the diverse influences of fast food I hope to shed light not only on the workings of an important industry, but also on a distinctively American way of viewing the world.
Elitists have always looked down at fast food, criticizing how it tastes and regarding it as another tacky manifestation of American popular culture. The aesthetics of fast food are of much less concern to me than its impact upon the lives of ordinary Americans, both as workers and consumers. Most of all, I am concerned about its impact on the nation's children. Fast food is heavily marketed to children and prepared by people who are barely older than children. This is an industry that both feeds and feeds off the young. During the two years spent researching this book, I ate an enormous amount of fast food. Most of it tasted pretty good. That is one of the main reasons people buy fast food; it has been carefully designed to taste good. It's also inexpensive and convenient. But the value meals, two-for-one deals, and free refills of soda give a distorted sense of how much fast food actually costs. The real price never appears on the menu.
The sociologist George Ritzer has attacked the fast food industry for celebrating a narrow measure of efficiency over every other human value, calling the triumph of McDonald's "the irrationality of rationality." Others consider the fast food industry proof of the nation's great economic vitality, a beloved American inst.i.tution that appeals overseas to millions who admire our way of life. Indeed, the values, the culture, and the industrial arrangements of our fast food nation are now being exported to the rest of the world. Fast food has joined Hollywood movies, blue jeans, and pop music as one of America's most prominent cultural exports. Unlike other commodities, however, fast food isn't viewed, read, played, or worn. It enters the body and becomes part of the consumer. No other industry offers, both literally and figuratively, so much insight into the nature of ma.s.s consumption.
Hundreds of millions of people buy fast food every day without giving it much thought, unaware of the subtle and not so subtle ramifications of their purchases. They rarely consider where this food came from, how it was made, what it is doing to the community around them. They just grab their tray off the counter, find a table, take a seat, unwrap the paper, and dig in. The whole experience is transitory and soon forgotten. I've written this book out of a belief that people should know what lies behind the shiny, happy surface of every fast food transaction. They should know what really lurks between those sesame-seed buns. As the old saying goes: You are what you eat.
I/the american way
1/ the founding fathers
CARL N. KARCHER KARCHER is one of the fast food industry's pioneers. His career extends from the industry's modest origins to its current hamburger hegemony. His life seems at once to be a tale by Horatio Alger, a fulfillment of the American dream, and a warning about unintended consequences. It is a fast food parable about how the industry started and where it can lead. At the heart of the story is southern California, whose cities became prototypes for the rest of the nation, whose love of the automobile changed what America looks like and what Americans eat. is one of the fast food industry's pioneers. His career extends from the industry's modest origins to its current hamburger hegemony. His life seems at once to be a tale by Horatio Alger, a fulfillment of the American dream, and a warning about unintended consequences. It is a fast food parable about how the industry started and where it can lead. At the heart of the story is southern California, whose cities became prototypes for the rest of the nation, whose love of the automobile changed what America looks like and what Americans eat.
Carl was born in 1917 on a farm near Upper Sandusky, Ohio. His father was a sharecropper who moved the family to new land every few years. The Karchers were German-American, industrious, and devoutly Catholic. Carl had six brothers and a sister. "The harder you work," their father always told them, "the luckier you become." Carl dropped out of school after the eighth grade and worked twelve to fourteen hours a day on the farm, harvesting with a team of horses, baling hay, milking and feeding the cows. In 1937, Ben Karcher, one of Carl's uncles, offered him a job in Anaheim, California. After thinking long and hard and consulting with his parents, Carl decided to go west. He was twenty years old and six-foot-four, a big strong farm boy. He had never set foot outside of northern Ohio. The decision to leave home felt momentous, and the drive to California took a week. When he arrived in Anaheim - and saw the palm trees and orange groves, and smelled the citrus in the air - Carl said to himself, "This is heaven."
Anaheim was a small town in those days, surrounded by ranches and farms. It was located in the heart of southern California's citrus belt, an area that produced almost all of the state's oranges, lemons, and tangerines. Orange County and neighboring Los Angeles County were the leading agricultural counties in the United States, growing fruits, nuts, vegetables, and flowers on land that only a generation earlier had been a desert covered in sagebrush and cactus. Ma.s.sive irrigation projects, built with public money to improve private land, brought water from hundreds of miles away. The Anaheim area alone boasted about 70,000 acres of Valencia oranges, as well as lemon groves and walnut groves. Small ranches and dairy farms dotted the land, and sunflowers lined the back roads. Anaheim had been settled in the late nineteenth century by German immigrants hoping to create a local wine industry and by a group of Polish expatriates trying to establish a back-to-the-land artistic community. The wineries flourished for three decades; the art colony collapsed within a few months. After World War I, the heavily German character of Anaheim gave way to the influence of newer arrivals from the Midwest, who tended to be Protestant and conservative and evangelical about their faith. Reverend Leon L. Myers - pastor of the Anaheim Christian Church and founder of the local Men's Bible Club - turned the Ku Klux Klan into one of the most powerful organizations in town. During the early 1920s, the Klan ran Anaheim's leading daily newspaper, controlled the city government for a year, and posted signs on the outskirts of the city greeting newcomers with the acronym "KIGY" (Klansmen I Greet You).
Carl's uncle Ben owned Karcher's Feed and Seed Store, right in the middle of downtown Anaheim. Carl worked there seventy-six hours a week, selling goods to local farmers for their chickens, cattle, and hogs. During Sunday services at St. Boniface Catholic Church, Carl spotted an attractive young woman named Margaret Heinz sitting in a nearby pew. He later asked her out for ice cream, and the two began dating. Carl became a frequent visitor to the Heinz farm on North Palm Street. It had ten acres of orange trees and a Spanish-style house where Margaret, her parents, her seven brothers, and her seven sisters lived. The place seemed magical. In the social hierarchy of California's farmers, orange growers stood at the very top; their homes were set amid fragrant evergreen trees that produced a lucrative income. As a young boy in Ohio, Carl had been thrilled on Christmas mornings to receive a single orange as a gift from Santa. Now oranges seemed to be everywhere.
Margaret worked as a secretary at a law firm downtown. From her office window on the fourth floor, she could watch Carl grinding feed outside his uncle's store. After briefly returning to Ohio, Carl went to work for the Armstrong Bakery in Los Angeles. The job soon paid $24 a week, $6 more than he'd earned at the feed store - and enough to start a family. Carl and Margaret were married in 1939 and had their first child within a year.
Carl drove a truck for the bakery, delivering bread to restaurants and markets in west L.A. He was amazed by the number of hot dog stands that were opening and by the number of buns they went through every week. When Carl heard that a hot dog cart was for sale - on Florence Avenue across from the Goodyear factory - he decided to buy it. Margaret strongly opposed the idea, wondering where he'd find the money. He borrowed $311 from the Bank of America, using his car as collateral for the loan, and persuaded his wife to give him $15 in cash from her purse. "I'm in business for myself now," Carl thought, after buying the cart, "I'm on my way." He kept his job at the bakery and hired two young men to work the cart during the hours he was delivering bread. They sold hot dogs, chili dogs, and tamales for a dime each, soda for a nickel. Five months after Carl bought the cart, the United States entered World War II, and the Goodyear plant became very busy. Soon he had enough money to buy a second hot dog cart, which Margaret often ran by herself, selling food and counting change while their daughter slept nearby in the car.
Southern California had recently given birth to an entirely new lifestyle - and a new way of eating. Both revolved around cars. The cities back East had been built in the railway era, with central business districts linked to outlying suburbs by commuter train and trolley. But the tremendous growth of Los Angeles occurred at a time when automobiles were finally affordable. Between 1920 and 1940, the population of southern California nearly tripled, as about 2 million people arrived from across the United States. While cities in the East expanded through immigration and became more diverse, Los Angeles became more h.o.m.ogenous and white. The city was inundated with middle-cla.s.s arrivals from the Midwest, especially in the years leading up to the Great Depression. Invalids, retirees, and small businessmen were drawn to southern California by real estate ads promising a warm climate and a good life. It was the first large-scale migration conducted mainly by car. Los Angeles soon became unlike any other city the world had ever seen, sprawling and horizontal, a thoroughly suburban metropolis of detached homes - a glimpse of the future, molded by the automobile. About 80 percent of the population had been born elsewhere; about half had rolled into town during the previous five years. Restlessness, impermanence, and speed were embedded in the culture that soon emerged there, along with an openness to anything new. Other cities were being transformed by car ownership, but none was so profoundly altered. By 1940, there were about a million cars in Los Angeles, more cars than in forty-one states.
The automobile offered drivers a feeling of independence and control. Daily travel was freed from the ha.s.sles of rail schedules, the needs of other pa.s.sengers, and the location of trolley stops. More importantly, driving seemed to cost much less than using public transport - an illusion created by the fact that the price of a new car did not include the price of building new roads. Lobbyists from the oil, tire, and automobile industries, among others, had persuaded state and federal agencies to a.s.sume that fundamental expense. Had the big auto companies been required to pay for the roads - in the same way that trolley companies had to lay and maintain track - the landscape of the American West would look quite different today.
The automobile industry, however, was not content simply to reap the benefits of government-subsidized road construction. It was determined to wipe out railway compet.i.tion by whatever means necessary. In the late 1920s, General Motors secretly began to purchase trolley systems throughout the United States, using a number of front corporations. Trolley systems in Tulsa, Oklahoma, and Montgomery, Alabama, in Cedar Rapids, Iowa, and El Paso, Texas, in Baltimore, Chicago, New York City, and Los Angeles - more than one hundred trolley systems in all - were purchased by GM and then completely dismantled, their tracks ripped up, their overhead wires torn down. The trolley companies were turned into bus lines, and the new buses were manufactured by GM.
General Motors eventually persuaded other companies that benefited from road building to help pay for the costly takeover of America's trolleys. In 1947, GM and a number of its allies in the scheme were indicted on federal ant.i.trust charges. Two years later, the workings of the conspiracy, and its underlying intentions, were exposed during a trial in Chicago. GM, Mack Truck, Firestone, and Standard Oil of California were all found guilty on one of the two counts by the federal jury. The investigative journalist Jonathan Kwitny later argued that the case was "a fine example of what can happen when important matters of public policy are abandoned by government to the self-interest of corporations." Judge William J. Campbell was not so outraged. As punishment, he ordered GM and the other companies to pay a fine of $5,000 each. The executives who had secretly plotted and carried out the destruction of America's light rail network were fined $1 each. And the postwar reign of the automobile proceeded without much further challenge.
The nation's car culture reached its height in southern California, inspiring innovations such as the world's first motel and the first drive-in bank. A new form of eating place emerged. "People with cars are so lazy they don't want to get out of them to eat!" said Jesse G. Kirby, the founder of an early drive-in restaurant chain. Kirby's first "Pig Stand" was in Texas, but the chain soon thrived in Los Angeles, alongside countless other food stands offering "curb service." In the rest of the United States, drive-ins were usually a seasonal phenomenon, closing at the end of every summer. In southern California, it felt like summer all year long, the drive-ins never closed, and a whole new industry was born.
The southern California drive-in restaurants of the early 1940s tended to be gaudy and round, topped with pylons, towers, and flashing signs. They were "circular meccas of neon," in the words of drive-in historian Michael Witzel, designed to be easily spotted from the road. The triumph of the automobile encouraged not only a geographic separation between buildings, but also a manmade landscape that was loud and bold. Architecture could no longer afford to be subtle; it had to catch the eye of motorists traveling at high speed. The new drive-ins competed for attention, using all kinds of visual lures, decorating their buildings in bright colors and dressing their waitresses in various costumes. Known as "carhops," the waitresses who carried trays of food to patrons in parked cars - often wore short skirts and dressed up like cowgirls, majorettes, Scottish la.s.ses in kilts. They were likely to be attractive, often received no hourly wages, and earned their money through tips and a small commission on every item they sold. The carhops had a strong economic incentive to be friendly to their customers, and drive-in restaurants quickly became popular hangouts for teenage boys. The drive-ins fit perfectly with the youth culture of Los Angeles. They were something genuinely new and different, they offered a combination of girls and cars and late-night food, and before long they beckoned from intersections all over town.
speedee service.
BY THE END OF 1944, Carl Karcher owned four hot dog carts in Los Angeles. In addition to running the carts, he still worked full-time for the Armstrong Bakery. When a restaurant across the street from the Heinz farm went on sale, Carl decided to buy it. He quit the bakery, bought the restaurant, fixed it up, and spent a few weeks learning how to cook. On January 16, 1945, his twenty-eighth birthday, Carl's Drive-In Barbeque opened its doors. The restaurant was small, rectangular, and unexceptional, with red tiles on the roof. Its only hint of flamboyance was a five-pointed star atop the neon sign in the parking lot. During business hours, Carl did the cooking, Margaret worked behind the cash register, and carhops served most of the food. After closing time, Carl stayed late into the night, cleaning the bathrooms and mopping the floors. Once a week, he prepared the "special sauce" for his hamburgers, making it in huge kettles on the back porch of his house, stirring it with a stick and then pouring it into one-gallon jugs. 1944, Carl Karcher owned four hot dog carts in Los Angeles. In addition to running the carts, he still worked full-time for the Armstrong Bakery. When a restaurant across the street from the Heinz farm went on sale, Carl decided to buy it. He quit the bakery, bought the restaurant, fixed it up, and spent a few weeks learning how to cook. On January 16, 1945, his twenty-eighth birthday, Carl's Drive-In Barbeque opened its doors. The restaurant was small, rectangular, and unexceptional, with red tiles on the roof. Its only hint of flamboyance was a five-pointed star atop the neon sign in the parking lot. During business hours, Carl did the cooking, Margaret worked behind the cash register, and carhops served most of the food. After closing time, Carl stayed late into the night, cleaning the bathrooms and mopping the floors. Once a week, he prepared the "special sauce" for his hamburgers, making it in huge kettles on the back porch of his house, stirring it with a stick and then pouring it into one-gallon jugs.
After World War II, business soared at Carl's Drive-In Barbeque, along with the economy of southern California. The oil business and the film business had thrived in Los Angeles during the 1920s and 1930s. But it was World War II that transformed southern California into the most important economic region in the West. The war's effect on the state, in the words of historian Carey McWilliams, was a "fabulous boom." Between 1940 and 1945, the federal government spent nearly $20 billion in California, mainly in and around Los Angeles, building airplane factories and steel mills, military bases and port facilities. During those six years, federal spending was responsible for nearly half of the personal income in southern California. By the end of World War II, Los Angeles was the second-largest manufacturing center in America, with an industrial output surpa.s.sed only by that of Detroit. While Hollywood garnered most of the headlines, defense spending remained the focus of the local economy for the next two decades, providing about one-third of its jobs.
The new prosperity enabled Carl and Margaret to buy a house five blocks away from their restaurant. They added more rooms as the family grew to include twelve children: nine girls and three boys. In the early 1950s Anaheim began to feel much less rural and remote. Walt Disney bought 160 acres of orange groves just a few miles from Carl's Drive-in Barbeque, chopped down the trees, and started to build Disneyland. In the neighboring town of Garden Grove, the Reverend Robert Schuller founded the nation's first Drive-in Church, preaching on Sunday mornings at a drive-in movie theater, spreading the Gospel through the little speakers at each parking s.p.a.ce, attracting large crowds with the slogan "Worship as you are... in the family car." The city of Anaheim started to recruit defense contractors, eventually persuading Northrop, Boeing, and North American Aviation to build factories there. Anaheim soon became the fastest-growing city in the nation's fastest-growing state. Carl's Drive-In Barbeque thrived, and Carl thought its future was secure. And then he heard about a restaurant in the "Inland Empire," sixty miles east of Los Angeles, that was selling high-quality hamburgers for 15 cents each - 20 cents less than what Carl charged. He drove to E Street in San Bernardino and saw the shape of things to come. Dozens of people were standing in line to buy bags of "McDonald's Famous Hamburgers."
Richard and Maurice McDonald had left New Hampshire for southern California at the start of the Depression, hoping to find jobs in Hollywood. They worked as set builders on the Columbia Film Studios back lot, saved their money, and bought a movie theater in Glendale. The theater was not a success. In 1937 they opened a drive-in restaurant in Pasadena, trying to cash in on the new craze, hiring three carhops and selling mainly hot dogs. A few years later they moved to a larger building on E Street in San Bernardino and opened the McDonald Brothers Burger Bar Drive-In. The new restaurant was located near a high school, employed twenty carhops, and promptly made the brothers rich. Richard and "Mac" McDonald bought one of the largest houses in San Bernardino, a hillside mansion with a tennis court and a pool.
By the end of the 1940s the McDonald brothers had grown dissatisfied with the drive-in business. They were tired of constantly looking for new carhops and short-order cooks - who were in great demand - as the old ones left for higher-paying jobs elsewhere. They were tired of replacing the dishes, gla.s.sware, and silverware their teenage customers constantly broke or ripped off. And they were tired of their teenage customers. The brothers thought about selling the restaurant. Instead, they tried something new.
The McDonalds fired all their carhops in 1948, closed their restaurant, installed larger grills, and reopened three months later with a radically new method of preparing food. It was designed to increase the speed, lower prices, and raise the volume of sales. The brothers eliminated almost two-thirds of the items on their old menu. They got rid of everything that had to be eaten with a knife, spoon, or fork. The only sandwiches now sold were hamburgers or cheeseburgers. The brothers got rid of their dishes and gla.s.sware, replacing them with paper cups, paper bags, and paper plates. They divided the food preparation into separate tasks performed by different workers. To fill a typical order, one person grilled the hamburger; another "dressed" and wrapped it; another prepared the milk shake; another made the fries; and another worked the counter. For the first time, the guiding principles of a factory a.s.sembly line were applied to a commercial kitchen. The new division of labor meant that a worker only had to be taught how to perform one task. Skilled and expensive short-order cooks were no longer necessary. All of the burgers were sold with the same condiments: ketchup, onions, mustard, and two pickles. No subst.i.tutions were allowed. The McDonald brothers' Speedee Service System revolutionized the restaurant business. An ad of theirs seeking franchisees later spelled out the benefits of the system: "Imagine - No Carhops - No Waitresses - No Dishwashers - No Bus Boys - The McDonald's System is Self-Service!"
Richard McDonald designed a new building for the restaurant, hoping to make it easy to spot from the road. Though untrained as an architect, he came up with a design that was simple, memorable, and archetypal. On two sides of the roof he put golden arches, lit by neon at night, that from a distance formed the letter M M. The building effortlessly fused advertising with architecture and sp.a.w.ned one of the most famous corporate logos in the world.
The Speedee Service System, however, got off to a rocky start. Customers pulled up to the restaurant and honked their horns, wondering what had happened to the carhops, still expecting to be served. People were not yet accustomed to waiting in line and getting their own food. Within a few weeks, however, the new system gained acceptance, as word spread about the low prices and good hamburgers. The McDonald brothers now aimed for a much broader clientele. They employed only young men, convinced that female workers would attract teenage boys to the restaurant and drive away other customers. Families soon lined up to eat at McDonald's. Company historian John F. Love explained the lasting significance of McDonald's new self-service system: "Working-cla.s.s families could finally afford to feed their kids restaurant food."
San Bernardino at the time was an ideal setting for all sorts of cultural experimentation. The town was an odd melting-pot of agriculture and industry located on the periphery of the southern California boom, a place that felt out on the edge. Nicknamed "San Berdoo," it was full of citrus groves, but sat next door to the smokestacks and steel mills of Fontana. San Bernardino had just sixty thousand inhabitants, but millions of people pa.s.sed through there every year. It was the last stop on Route 66, end of the line for truckers, tourists, and migrants from the East. Its main street was jammed with drive-ins and cheap motels. The same year the McDonald brothers opened their new self-service restaurant, a group of World War II veterans in San Berdoo, alienated by the dullness of civilian life, formed a local motorcycle club, borrowing the nickname of the U.S. Army's Eleventh Airborne Division: "h.e.l.l's Angels." The same town that gave the world the golden arches also gave it a biker gang that stood for a totally ant.i.thetical set of values. The h.e.l.l's Angels flaunted their dirtiness, celebrated disorder, terrified families and small children instead of trying to sell them burgers, took drugs, sold drugs, and injected into American pop culture an anger and a darkness and a fashion statement - T-shirts and torn jeans, black leather jackets and boots, long hair, facial hair, swastikas, silver skull rings and other satanic trinkets, earrings, nose rings, body piercings, and tattoos - that would influence a long line of rebels from Marlon Brando to Marilyn Manson. The h.e.l.l's Angels were the anti-McDonald's, the opposite of clean and cheery. They didn't care if you had a nice day, and yet were as deeply American in their own way as any purveyors of Speedee Service. San Bernardino in 1948 supplied the nation with a new yin and yang, new models of conformity and rebellion. "They get angry when they read about how filthy they are," Hunter Thompson later wrote of the h.e.l.l's Angels, "but instead of shoplifting some deodorant, they strive to become even filthier."
burgerville usa.
AFTER VISITING SAN BERNARDINO and seeing the long lines at McDonald's, Carl Karcher went home to Anaheim and decided to open his own self-service restaurant. Carl instinctively grasped that the new car culture would forever change America. He saw what was coming, and his timing was perfect. The first Carl's Jr. restaurant opened in 1956 - the same year that America got its first shopping mall and that Congress pa.s.sed the Interstate Highway Act. President Dwight D. Eisenhower had pushed hard for such a bill; during World War II, he'd been enormously impressed by Adolf Hitler's Reichsautobahn, the world's first superhighway system. The Interstate Highway Act brought autobahns to the United States and became the largest public works project in the nation's history, building 46,000 miles of road with more than $130 billion of federal money. The new highways spurred car sales, truck sales, and the construction of new suburban homes. Carl's first self-service restaurant was a success, and he soon opened others near California's new freeway off-ramps. The star atop his drive-in sign became the mascot of his fast food chain. It was a smiling star in little booties, holding a burger and a shake. and seeing the long lines at McDonald's, Carl Karcher went home to Anaheim and decided to open his own self-service restaurant. Carl instinctively grasped that the new car culture would forever change America. He saw what was coming, and his timing was perfect. The first Carl's Jr. restaurant opened in 1956 - the same year that America got its first shopping mall and that Congress pa.s.sed the Interstate Highway Act. President Dwight D. Eisenhower had pushed hard for such a bill; during World War II, he'd been enormously impressed by Adolf Hitler's Reichsautobahn, the world's first superhighway system. The Interstate Highway Act brought autobahns to the United States and became the largest public works project in the nation's history, building 46,000 miles of road with more than $130 billion of federal money. The new highways spurred car sales, truck sales, and the construction of new suburban homes. Carl's first self-service restaurant was a success, and he soon opened others near California's new freeway off-ramps. The star atop his drive-in sign became the mascot of his fast food chain. It was a smiling star in little booties, holding a burger and a shake.
Entrepreneurs from all over the country went to San Bernardino, visited the new McDonald's, and built imitations of the restaurant in their hometowns. "Our food was exactly the same as McDonald's," the founder of a rival chain later admitted. "If I had looked at McDonald's and saw someone flipping hamburgers while he was hanging by his feet, I would have copied it." America's fast food chains were not launched by large corporations relying upon focus groups and market research. They were started by door-to-door salesmen, short-order cooks, orphans, and dropouts, by eternal optimists looking for a piece of the next big thing. The start-up costs of a fast food restaurant were low, the profit margins promised to be high, and a wide a.s.sortment of ambitious people were soon buying grills and putting up signs.
William Rosenberg dropped out of school at the age of fourteen, delivered telegrams for Western Union, drove an ice cream truck, worked as a door-to-door salesman, sold sandwiches and coffee to factory workers in Boston, and then opened a small doughnut shop in 1948, later calling it Dunkin' Donuts. Glen W. Bell, Jr., was a World War II veteran, a resident of San Bernardino who ate at the new McDonald's and decided to copy it, using the a.s.sembly-line system to make Mexican food and founding a restaurant chain later known as Taco Bell. Keith G. Cramer, the owner of Keith's Drive-In Restaurant in Daytona Beach, Florida, heard about the McDonald brothers' new restaurant, flew to southern California, ate at McDonald's, returned to Florida, and with his father-in-law, Matthew Burns, opened the first Insta-Burger-King in 1953. Dave Thomas started working in a restaurant at the age of twelve, left his adoptive father, took a room at the YMCA, dropped out of school at fifteen, served as a bus-boy and a cook, and eventually opened his own place in Columbus, Ohio, calling it Wendy's Old-Fashioned Hamburgers restaurant. Thomas S. Monaghan spent much of his childhood in a Catholic orphanage and a series of foster homes, worked as a soda jerk, barely graduated from high school, joined the Marines, and bought a pizzeria in Ypsilanti, Michigan, with his brother, securing the deal through a down payment of $75. Eight months later Monaghan's brother decided to quit and accepted a used Volkswagen Beetle for his share of a business later known as Domino's.
The story of Harland Sanders is perhaps the most remarkable. Sanders left school at the age of twelve, worked as a farm hand, a mule tender, and a railway fireman. At various times he worked as a lawyer without having a law degree, delivered babies as a part-time obstetrician without having a medical degree, sold insurance door to door, sold Michelin tires, and operated a gas station in Corbin, Kentucky. He served home-cooked food at a small dining-room table in the back, later opened a popular restaurant and motel, sold them to pay off debts, and at the age of sixty-five became a traveling salesman once again, offering restaurant owners the "secret recipe" for his fried chicken. The first Kentucky Fried Chicken restaurant opened in 1952, near Salt Lake City, Utah. Lacking money to promote the new chain, Sanders dressed up like a Kentucky colonel, sporting a white suit and a black string tie. By the early 1960s, Kentucky Fried Chicken was the largest restaurant chain in the United States, and Colonel Sanders was a household name. In his autobiography, Life As I Have Known It Has Been "Finger-lickin' Good Life As I Have Known It Has Been "Finger-lickin' Good," Sanders described his ups and downs, his decision at the age of seventy-four to be rebaptized and born again, his lifelong struggle to stop cursing. Despite his best efforts and a devout faith in Christ, Harland Sanders admitted that it was still awfully hard "not to call a no-good, lazy, incompetent, dishonest s...o...b.. by anything else but his rightful name."
For every fast food idea that swept the nation, there were countless others that flourished briefly - or never had a prayer. There were chains with homey names, like Sandy's, Carrol's, Henry's, Winky's, and Mr. Fifteen's. There were chains with futuristic names, like the Satellite Hamburger System and Kelly's Jet System. Most of all, there were chains named after their main dish: Burger Chefs, Burger Queens, Burgerville USAs, Yumy Burgers, Twitty Burgers, Whata-burgers, Dundee Burgers, Biff-Burgers, O.K. Big Burgers, and Burger Boy Food-O-Ramas.
Many of the new restaurants advertised an array of technological wonders. Carhops were rendered obsolete by various remote-control ordering systems, like the Fone-A-Chef, the Teletray, and the Electro-Hop. The Motormat was an elaborate rail system that transported food and beverages from the kitchen to parked cars. At the Biff-Burger chain, Biff-Burgers were "roto-broiled" beneath glowing quartz tubes that worked just like a s.p.a.ce heater. Insta-Burger-King restaurants featured a pair of "Miracle Insta Machines," one to make milk shakes, the other to cook burgers. "Both machines have been thoroughly perfected thoroughly perfected," the company a.s.sured prospective franchisees, "are of foolproof design - can be easily operated even by a moron." The Insta-Burger Stove was an elaborate contraption. Twelve hamburger patties entered it in individual wire baskets, circled two electric heating elements, got cooked on both sides, and then slid down a chute into a pan of sauce, while hamburger buns toasted in a nearby slot. This Miracle Insta Machine proved overly complex, frequently malfunctioned, and was eventually abandoned by the Burger King chain.
The fast food wars in southern California - the birthplace of Jack in the Box, as well as McDonald's, Taco Bell, and Carl's Jr. - were especially fierce. One by one, most of the old drive-ins closed, unable to compete against the less expensive, self-service burger joints. But Carl kept at it, opening new restaurants up and down the state, following the new freeways. Four of these freeways - the Riverside, the Santa Ana, the Costa Mesa, and the Orange - soon pa.s.sed through Anaheim. Although Carl's Jr. was a great success, a few of Carl's other ideas should have remained on the drawing board. Carl's Whistle Stops featured employees dressed as railway workers, "Hobo Burgers," and toy electric trains that took orders to the kitchen. Three were built in 1966 and then converted to Carl's Jr. restaurants a few years later. A coffee shop chain with a Scottish theme also never found its niche. The waitresses at "Scot's" wore plaid skirts, and the dishes had unfortunate names, such as "The Clansman."
The leading fast food chains spread nationwide; between 1960 and 1973, the number of McDonald's restaurants grew from roughly 250 to 3,000. The Arab oil embargo of 1973 gave the fast food industry a bad scare, as long lines at gas stations led many to believe that America's car culture was endangered. Amid gasoline shortages, the value of McDonald's stock fell. When the crisis pa.s.sed, fast food stock prices recovered, and McDonald's intensified its efforts to open urban, as well as suburban, restaurants. Wall Street invested heavily in the fast food chains, and corporate managers replaced many of the early pioneers. What had begun as a series of small, regional businesses became a fast food industry, a major component of the American economy.
progress.
IN 1976, 1976, THE NEW HEADQUARTERS THE NEW HEADQUARTERS of Carl Karcher Enterprises, Inc. (CKE) was built on the same land in Anaheim where the Heinz farm had once stood. The opening-night celebration was one of the high points of Carl's life. More than a thousand people gathered for a black-tie party at a tent set up in the parking lot. There was dinner and dancing on a beautiful, moonlit night. Thirty-five years after buying his first hot dog cart, Carl Karcher now controlled one of the largest privately owned fast food chains in the United States. He owned hundreds of restaurants. He considered many notable Americans to be his friends, including Governor Ronald Reagan, former president Richard Nixon, Gene Autry, Art Linkletter, Lawrence Welk, and Pat Boone. Carl's nickname was "Mr. Orange County." He was a benefactor of Catholic charities, a Knight of Malta, a strong supporter of right-to-life causes. He attended private ma.s.ses at the Vatican with the Pope. And then, despite all the hard work, Carl's luck began to change. of Carl Karcher Enterprises, Inc. (CKE) was built on the same land in Anaheim where the Heinz farm had once stood. The opening-night celebration was one of the high points of Carl's life. More than a thousand people gathered for a black-tie party at a tent set up in the parking lot. There was dinner and dancing on a beautiful, moonlit night. Thirty-five years after buying his first hot dog cart, Carl Karcher now controlled one of the largest privately owned fast food chains in the United States. He owned hundreds of restaurants. He considered many notable Americans to be his friends, including Governor Ronald Reagan, former president Richard Nixon, Gene Autry, Art Linkletter, Lawrence Welk, and Pat Boone. Carl's nickname was "Mr. Orange County." He was a benefactor of Catholic charities, a Knight of Malta, a strong supporter of right-to-life causes. He attended private ma.s.ses at the Vatican with the Pope. And then, despite all the hard work, Carl's luck began to change.
During the 1980s CKE went public, opened Carl's Jr. restaurants in Texas, added higher-priced dinners to the menu, and for the first time began to expand by selling franchises. The new menu items and the restaurants in Texas fared poorly. The value of CKE's stock fell. In 1988, Carl and half a dozen members of his family were accused of insider trading by the Securities and Exchange Commission (SEC). They had sold large amounts of CKE stock right before its price tumbled. Carl vehemently denied the charges and felt humiliated by the publicity surrounding the case. Nevertheless, Carl agreed to a settlement with the SEC - to avoid a long and expensive legal battle, he said - and paid more than half a million dollars in fines.
During the early 1990s, a number of Carl's real estate investments proved unwise. When new subdivisions in Anaheim and the Inland Empire went bankrupt, Carl was saddled with many of their debts. He had allowed real estate developers to use his CKE stock as collateral for their bank loans. He became embroiled in more than two dozen lawsuits. He suddenly owed more than $70 million to various banks. The falling price of CKE stock hampered his ability to repay the loans. In May of 1992, his brother Don - a trusted adviser and the president of CKE - died. The new president tried to increase sales at Carl's Jr. restaurants by purchasing food of a lower quality and cutting prices. The strategy began to drive customers away.
As the chairman of CKE, Carl searched for ways to save his company and pay off his debts. He proposed selling Mexican food at Carl's Jr. restaurants as part of a joint venture with a chain called Green Burrito. But some executives at CKE opposed the plan, arguing that it would benefit Carl much more than the company. Carl had a financial stake in the deal; upon its acceptance by the board of CKE, he would receive a $6 million personal loan from Green Burrito. Carl was outraged that his motives were being questioned and that his business was being run into the ground. CKE now felt like a much different company than the one he'd founded. The new management team had ended the longtime practice of starting every executive meeting with the prayer of St. Francis of a.s.sisi and the p