Wildly Popular Fast Food Chain To Close 200 Locations Nationwide

The economy has not done the restaurant industry any favors as of late. Families have to tighten their budgets, and eating out is one of the first things they will eliminate. The rising cost of food and fewer customers has caused a dynamic shift in both fast food and sit-down restaurants. We’ve learned about thousands of establishments shuttering locations across the country and Jack in the Box is the latest to announce closures. In an April 23 news release, the company announced its new “JACK on Track” plan to shutter between 150 and 200 locations. Additionally, the company “has engaged BofA Securities to assist in the process of exploring strategic alternatives for the Del Taco® brand, including a possible divestiture of the business.”

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Jack in the Box named Lance Tucker the Chief Executive Officer on March 31. He hopes to make significant changes that will ultimately improve the company’s financial stability.

“In my time thus far as CEO, I have worked quickly with our teams to conclude that Jack in the Box operates at its best, and maximizes shareholder return potential, within a simplified and asset-light business model,” Lance said. “Our actions today focus on three main areas: addressing our balance sheet to accelerate cash flow and pay down debt, while preserving growth-oriented capital investments related to technology and restaurant reimage; closing underperforming restaurants to position ourselves for consistent net unit growth and competitive unit economics; and, an overall return to simplicity for the Jack in the Box business model and investor story.”

According to the release, Jack in the Box currently operates 2,220 locations across 22 states. Del Taco® operates 600 restaurants in 17 states. The company did not disclose which locations will close.

This story’s featured image is by Eric Thayer/Bloomberg via Getty Images.