Once one of the most popular burger chains, Jack in the Box is struggling to survive after years of gradual decline. The company is planning to close down 150-200 underperforming locations by the end of 2025 in an effort to turn things around and pay down debt.
“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,” said Lance Tucker, named Chief Executive Officer at Jack in the Box on March 31. Tucker says the company is focusing on a plan called “Jack on Track” to save the brand.
“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.”
While Jack in the Box will continue to update older restaurants and will go ahead with franchisee deals, the future is very uncertain for the burger chain, which is also looking into selling the Del Taco brand. The company bought Del Taco in 2022 for $575 million, and is now “exploring strategic alternatives” for the Mexican fast-food chain, “including a possible divestiture of the business.”
“Quality plummeted when they took over, to the point where even Taco Bell is using better quality ingredients. Carl’s Jr did the same with Green Burrito, but they never sold it; they just let it completely die out. Hopefully someone buys Del Taco and puts some effort into saving them,” one Redditor said. “I was just thinking that the other day. I used to tell everyone Del Taco was better than Taco Bell, but after the last couple of years of having it, I don’t even get Del Taco anymore. It just felt like it kept getting worse. Grew up in California, so it was always a comfort food. But now it’s just kind of bad,” another agreed.
Like with many other fast food chains, customers increasingly felt the prices at Jack in the Box were just too expensive for what was on offer. “I used to be able to get a good deal on the ‘App only’ section or their coupons because there was variety. Now they just force you to spend $10+ in order to get something,” one complained. “Thought about trying that chicken but for $8 it was a hard pass. And the food doesn’t taste as good as before so sometimes I will use the coupon to get my kids two Oreo shakes but that is like once a month.”
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