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TORONTO -- The Toronto ad agency that made Harvey's hamburgers "a beautiful thing" is being shown the door after more than 20 years -- the latest indication of intensifying competition in the fast-food business.

Harvey's owner, Cara Operations Ltd., informed Ambrose Carr Linton Carroll (ACLC) that it is searching for a new agency for the 364-unit chain, whose annual ad budget is estimated at $7-million to $10-million.

"It's definitely been an extremely tough environment," said Esmé Carroll, chief executive officer of ACLC, the agency for Cara's Swiss Chalet chain.

Although Harvey's same-store sales have climbed for the past three years, Toronto-based Cara wants "to take a look at the brand with a new focus and see what they can do to stimulate more growth," she said.

Cara's decision comes a week after Wendy's Restaurants of Canada Inc. named a new ad shop, MacLaren McCann Canada Inc., as part of a North American realignment of its advertising.

Burger purveyors are facing an array of challenges ranging from tight-fisted consumers to growing competition from other restaurants, including coffee shops, such as Tim Hortons, and chains promoting healthier fare, such as Subway. Harvey's, McDonald's and others have responded with low-fat alternatives of their own, such as veggie burgers.

At the same time, profit margins are under pressure as fast-food restaurants try to lure consumers with discounts and promotions.

Harvey's hinted yesterday that it may be getting more aggressive with its advertising.

"Harvey's has a distinct proposition of best taste, freshness and choice and we believe more Canadians need to know we offer the best-tasting quick-food option," Murray Milthorpe, Harvey's director of marketing, said in a release.

Cara is interviewing prospective ad shops and expects to make a final decision by December. In the release, the company said it wants to differentiate the Harvey's and Swiss Chalet brands in the minds of consumers.

"Realigning Harvey's with a new ad agency . . . will maximize communications effectiveness in a highly competitive market where these major brands are increasingly competing for the same consumer," it said.

According to 2001 rankings by Foodservice and Hospitality magazine, Harvey's is the No. 5 burger chain behind McDonald's, Wendy's, A&W and Burger King.

ACLC started working for Harvey's around 1980 and is best known for the jingle, "Harvey's makes your hamburger a beautiful thing." The slogan, which was penned by agency chairman Doug Linton, ran for most of the eighties and was resurrected in the nineties, Ms. Carroll said.

ACLC's other clients include Honda Canada Inc. and Hershey Canada Inc. The agency is owned by Maxxcom Inc. of Toronto.