Jack in the Box to close up to 200 locations, may sell Del Taco (1 Viewer)

[tharock220]

https://abc7news.com/post/jack-box-close-200-underperforming-locations-may-sell-del-taco/16279460/

I'm not even being political about this, but I it's not surprising. Either these restaurants no longer understand the purpose they serve, or they do and are having a hard time doing so. Our oldest wanted Taco Bell several weeks ago, and a fast food dinner for four was over $70. Then again, the article says Taco Bell is doing okay, but we ate at Chipotle this week for about this, and it's significantly higher quality food.

NEW YORK -- Jack in the Box plans to close approximately 10% of its locations and is exploring a sale of its Del Taco brand amid a broader overhaul of the fast food chain that is struggling as customers cut back on spending.

The 74-year-old chain announced Wednesday that it's planning to close 150 to 200 "underperforming" locations, with 80 to 120 restaurants closing by the end of the year. Jack in the Box has about 2,200 restaurants, which are primarily located on the U.S. West Coast.

The closures are aimed at "addressing our balance sheet to accelerate cash flow and pay down debt," said Jack in the Box CEO Lance Tucker in a statement, with the chain hoping the pay off $300 million in debt over the next two years. He hopes the closures will lead to "consistent, net positive unit growth."

It's also exploring "strategic alternatives" for Del Taco, a Mexican-inspired chain that it bought just three years ago. However, the purchase has been beset with problems, Tucker revealed on a call with analysts, including rising inflation and tough competition from entrenched competitors, like Taco Bell.

"I don't know that (Del Taco's) results over the next several years are going to meaningfully contribute to Jack's bottom line," Tucker said, adding that it "makes sense to move them to another owner."

Jack in the Box pre-announced its earnings, revealing that sales at Del Taco dropped 3.6% and it will no longer provide financial guidance as it explores a sale. Meanwhile, Jack in the Box sales dipped 4.4% in the second quarter of 2025.

Jack in the Box's (JACK) struggles are reflected in its stock price, which has plunged 57% over the past year and is nearly 7% lower in premarket trading Thursday.

Other fast food chains are struggling, too, but not to the extent of Jack in the Box. Rivals like McDonald's have reported a sluggish start to the year and Chipotle said this week it's noticed a slowdown in spending. However, Taco Bell is forecasting an 8% surge in sales boosted by trending new menu items.

 

[Rexedgar]

Where are J in B store located? Year ago there was one in Alexandria, VA. I remember tasty food.

 

[americanwoman]

Where are J in B store located? Year ago there was one in Alexandria, VA. I remember tasty food.

There is one about 3 hours from me here in the Midwest and I like to go when I travel since there is not one closer but hot damn, the last time I went the cashier was barely functional. I applaud people who work for a living and are trying to do better but if you work at a hamburger joint, it might help to understand what a hamburger actually is.

 

[HenryChinaski]

They were all over Chicago’s North Side until the early 80s.
They’re returning with a small number of locations opening in Chicago and the suburbs starting this year.
In the early 90s, quite a few people died from a Jack in the box Listeria outbreak.

 

[Phys251]

JITB is overpriced garbage. Ever tried their "tacos"? They make Taco Bell tacos seem like luxury food.

 

[HenryChinaski]

JITB is overpriced garbage. Ever tried their "tacos"? They make Taco Bell tacos seem like luxury food.

They're a deep fried greasy monstrosity. A complete bastardization of Mexican food. But delicious..

 

[slavablueberryjam]

How has JITB existed so long for? Worst fast food imaginable, next to Steak'n'Shake. With the later losing a lot of business because they were awful to customers in treatment and prices.

 

[HenryChinaski]

How has JITB existed so long for? Worst fast food imaginable, next to Steak'n'Shake. With the later losing a lot of business because they were awful to customers in treatment and prices.

I'm kinda looking forward to their return to Chicago, the burgers look good.

 

[tharock220]

JITB is overpriced garbage. Ever tried their "tacos"? They make Taco Bell tacos seem like luxury food.

I grew up in a small town in Texa, and even when I went to college it was the early 2000's. It was one of the few places open 24 hours, and while I wasn't a pothead, the times I did smoke weed causes all of their tacos faults to be mitigated, two for a dollar.

They're a deep fried greasy monstrosity. A complete bastardization of Mexican food. But delicious..

Indeed. So greasy you sometimes had to peel the paper off them. We'd roll into the drive through at 2am baked out of our minds, and I'd order 20 plus some bacon and cheddar potato wedges.

How has JITB existed so long for? Worst fast food imaginable, next to Steak'n'Shake. With the later losing a lot of business because they were awful to customers in treatment and prices.

You could say this about most fast food, but it was really cheap, which was really the point of my thread, Jack in the Box was just an example. For the price, the food shouldn't be so awful. I think that's why some fast food restaurants might be struggling.

 

[slavablueberryjam]

I grew up in a small town in Texa, and even when I went to college it was the early 2000's. It was one of the few places open 24 hours, and while I wasn't a pothead, the times I did smoke weed causes all of their tacos faults to be mitigated, two for a dollar.



Indeed. So greasy you sometimes had to peel the paper off them. We'd roll into the drive through at 2am baked out of our minds, and I'd order 20 plus some bacon and cheddar potato wedges.



You could say this about most fast food, but it was really cheap, which was really the point of my thread, Jack in the Box was just an example. For the price, the food shouldn't be so awful. I think that's why some fast food restaurants might be struggling.

Yup. They forgot the quality is suppose to go up with prices, not stay the same.

 

[Chock Full o Nuts]

Had some JitB box around here for quite a few years, never stopped in.

Our oldest wanted Taco Bell several weeks ago, and a fast food dinner for four was over $70.

Jesus! 18+ bucks a piece for shitty food? 11-12 bucks at a joint just for myself is high enough for me.
Think last time I had Taco Bell, tacos were like 79 cents. Been a long time.

Then again, the article says Taco Bell is doing okay,

I'd say so at 18 bucks for enough food that an average person would eat. Back in the day, that would get me 20+ tacos!

 

[Taylor]

https://abc7news.com/post/jack-box-close-200-underperforming-locations-may-sell-del-taco/16279460/

I'm not even being political about this, but I it's not surprising. Either these restaurants no longer understand the purpose they serve, or they do and are having a hard time doing so. Our oldest wanted Taco Bell several weeks ago, and a fast food dinner for four was over $70. Then again, the article says Taco Bell is doing okay, but we ate at Chipotle this week for about this, and it's significantly higher quality food.

Don't know about JinB, but a Taco Bell "Value Meal" around here costs about $11-12 bucks. Have no idea who's buying that. Been getting steadily worse since Biden rescued America with his stellar plan.

 

[multivita-man]

I guess my JITB memories are different. I loved that shit. Their bacon double cheeseburgers and the curly fries were the shit back in the day, but ever since I moved from CA, I don't think I've seen a single one.

 

[tharock220]

I guess my JITB memories are different. I loved that shit. Their bacon double cheeseburgers and the curly fries were the shit back in the day, but ever since I moved from CA, I don't think I've seen a single one.

People have told me the In n Out hits different in California, and as many times as I've been there, I've never eated InO while visiting. When it came to Texas all I could think was "Whataburger is better than this".

 

[Lord Tammerlain]

Is it just me or are mcnuggets more bland than they used to be.

While the sauce has always been important but a nugget by itself had some flavor

The last two times i had them were very bland

 

[tharock220]

Is it just me or are mcnuggets more bland than they used to be.

While the sauce has always been important but a nugget by itself had some flavor

The last two times i had them were very bland

They were always bland. Now they cost too much and it's a fight to get any sauce. So you're more aware of it.

 

[Lycanthrope]

I remember the ".79, .89, .99 value menu" at Taco Bell. That was in the 1990s.

Good times.

 

[americanwoman]

JITB is overpriced garbage. Ever tried their "tacos"? They make Taco Bell tacos seem like luxury food.

At least they are priced that way at 2 for $.99. I'd rather pay $2 for 4 meh tacos than over $7 for 4 somewhat better tacos.

 

[Helix]

https://abc7news.com/post/jack-box-close-200-underperforming-locations-may-sell-del-taco/16279460/

I'm not even being political about this, but I it's not surprising. Either these restaurants no longer understand the purpose they serve, or they do and are having a hard time doing so. Our oldest wanted Taco Bell several weeks ago, and a fast food dinner for four was over $70. Then again, the article says Taco Bell is doing okay, but we ate at Chipotle this week for about this, and it's significantly higher quality food.

You paid 70 bucks for taco bell? Holy shit. I hope that I don't get reincarnated as your toilet.

 

[stealthycat]

Labor costs are real

In California, Jack in the Box has been raising minimum wages to meet the state's new $20 minimum wage requirement for fast food workers. This means that many Jack in the Box employees, including those who have been working at the company for many years, have seen their hourly pay increase. Some employees have seen a 25% increase in their wages, and the raise is seen as a positive step for those struggling financially. However, some franchisees have expressed concerns about the increased labor costs and have been forced to make adjustments to their operations, such as potentially cutting back on overtime or other benefits.

 

[Roadvirus]

Jack in the Box hasn't been big for a couple decades....or more.

I'm surprised they are still in business, actually.

 

[smb3802]

JITB is overpriced garbage. Ever tried their "tacos"? They make Taco Bell tacos seem like luxury food.

All fast food is garbage...that is what most people love about it. There tacos aren't any worse than any other fast food tacos and have a little zip to their dogfood filling. My regret is no more egg rolls. Their egg rolls may be garbage but tasty garbage.

 

[dcsports]

Jack in the Box hasn't been big for a couple decades....or more.

I'm surprised they are still in business, actually.

I am too! They used to be one of the better quality fast food chains, but I don't think they have any consistency between locations. Some were good, and others just threw things out there. For the last couple of decades it's been more of the latter. Not a recipe for success.

 

[smb3802]

Labor costs are real

In California, Jack in the Box has been raising minimum wages to meet the state's new $20 minimum wage requirement for fast food workers. This means that many Jack in the Box employees, including those who have been working at the company for many years, have seen their hourly pay increase. Some employees have seen a 25% increase in their wages, and the raise is seen as a positive step for those struggling financially. However, some franchisees have expressed concerns about the increased labor costs and have been forced to make adjustments to their operations, such as potentially cutting back on overtime or other benefits.

This has nothing to do with labor costs and everything to do with sales dips which have occurred nationwide for most fast food chains. There has been no significant impact of the minimum wage raise despite many conservative wailing and gnashing of teeth. https://ktla.com/news/california/ho...lifornia-changed-after-the-minimum-wage-hike/

 

[dcsports]

This has nothing to do with labor costs and everything to do with sales dips which have occurred nationwide for most fast food chains. There has been no significant impact of the minimum wage raise despite many conservative wailing and gnashing of teeth. https://ktla.com/news/california/ho...lifornia-changed-after-the-minimum-wage-hike/

I think there's also some shift in the market over time where some 'traditional' fast food chains haven't kept up. Jack in the Box was 'better' than budget options like McDonalds ... but now we have Chick-fil-A (and even some other options like Chipotle) that are different and have a better quality. Plus many options for burgers like Five Guys, Smashburger, etc. If Jack in the Box is more expensive than the cheap options - and the food is poor in comparison to the better options, why go there? It's lost it's target market. Especially if they have inconsistent quality.

I suspect that we're going to see the same thing with other chains that just haven't kept up - like Wendy's. Burger King seems to have adapted, but going the other direction - 'we're less crappy than McDonalds'.