Jack in the Box announced that it will close between 150 and 200 of its 2,200 restaurants in the country. This decision is part of its "JACK on Track" plan, implemented to reduce debts and optimize operations. The measure responds to a 4.4% drop in comparable sales during the second quarter of 2025.
The company is facing significant operational challenges. The increase in costs and high competition in the fast food sector have affected its profit margins. Therefore, Jack in the Box seeks to close the less profitable outlets and improve the efficiency of the remaining restaurants.
Jack in the Box is suffering | Jack in the box
, restructuring underway
The "JACK on Track" plan also aims to improve the customer experience and modernize operations. Through this restructuring, Jack in the Box hopes to focus its resources on the locations that offer better results. The closure of locations will affect employees, but the company assures that they will be offered alternatives within the organization.
The impact of these closures will be felt especially in areas with lower traffic. Also in restaurants that do not meet the company's profitability standards.
The possible sale of Del Taco
Another important move by Jack in the Box is the evaluation of the sale of its Del Taco brand. The company acquired Del Taco in 2022 for €575 million, but the performance of this chain has not been the desired one.
The drop in Del Taco's sales has led the company to reconsider its strategy. It must evaluate whether it is more profitable to sell the brand instead of continuing to invest in it.
Del Taco's performance has been disappointing, which has impacted Jack in the Box's overall results. Although the purchase seemed promising, the competition in the taco and fast food market has been fiercer than anticipated.
Jack in the Box could sell its Del Taco brand | Jack in the box
Impact on the fast food market
The closure of restaurants and the possible sale of Del Taco are a response to the growing pressures in the fast food market. The increase in operating costs, fierce competition, and changes in consumer preferences are affecting many chains. Brands must quickly adapt to new demands if they want to remain competitive.
Jack in the Box is not the only chain facing difficulties. Other major brands have also had to make adjustments to survive in a rapidly changing market. Fast food chains must find ways to diversify their offerings and provide more attractive options for consumers.
Looking to the future
Although the closures of restaurants and the sale of Del Taco are difficult moves, Jack in the Box hopes that these decisions will help strengthen its business in the long term. The company plans to focus on the most profitable restaurants and improve its market presence.
The fast food industry continues to face challenges, but those who manage to adapt to the new market realities will be able to continue growing. Jack in the Box is in the process of reinvention. Its next steps will be key to determining its future in the competitive world of fast food.