Fast-food chain Jack in the Box will close up to 200 stores and may sell Del Taco in a sweeping financial overhaul aimed at cutting costs and paying off debt.
Key Facts:
- Jack in the Box plans to close 150–200 underperforming stores as part of its “JACK on Track” strategy.
- The company operates about 2,200 locations in 22 states, with a heavy concentration on the West Coast.
- CEO says the plan is aimed at boosting cash flow and reducing company debt.
- Jack in the Box also owns Del Taco, which has 600 stores and may be sold as part of the restructuring.
- Closures will take place by year-end, with additional closures timed to franchise agreement expirations.
The Rest of The Story:
Jack in the Box is making major changes to its operations as it tries to improve its financial footing.
The company announced this week it will close up to 200 underperforming locations.
These closures are expected to occur before the end of 2025 or when certain franchise deals end.
The fast-food company also said it’s looking into selling Del Taco, a chain it bought in 2022.
With about 600 locations, Del Taco is the second-largest Mexican-style fast-food brand in the U.S., but it has struggled to stand out in a crowded market.
No final decision has been made about which Jack in the Box locations will close.
Commentary:
This shakeup at Jack in the Box isn’t all that surprising to anyone paying attention.
The company has strayed far from what made it popular—simple, satisfying fast food served quickly.
Instead, they bloated the menu with endless new items that rarely stay long enough to build loyalty.
Prices have also crept up significantly, while portions have shrunk and service has become inconsistent at best.
Customers today are paying more but getting less, and that’s a recipe for decline in a tough economic climate.
Del Taco has its own problems.
Many of their locations are outdated and lack the polish of competitors.
They’ve also suffered from similar issues: confusing menus, slow service, and quality concerns.
Selling Del Taco might offer some short-term relief, but without fixing core problems, Jack in the Box will still be stuck.
If Jack in the Box wants to survive in today’s market, it needs to refocus.
That means trimming down the menu, improving food quality, and investing in better training and retention strategies for employees.
Fast food still works when it’s done right—just ask the chains that are growing today.
Until then, shuttering stores may stop some bleeding, but it won’t heal the wounds caused by years of poor decisions and declining standards.
The Bottom Line:
Jack in the Box is making aggressive cuts to stay afloat, with up to 200 stores closing and a possible sale of Del Taco.
While the company hopes to improve cash flow and reduce debt, its real challenge lies in fixing its food, prices, and service.
Without addressing those root problems, the closures may only be a temporary fix.
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