Fast casual chain restaurants are really taking a hit lately. We've got Hooters trying to rebrand itself as a family-friendly establishment (let's see how that goes...), Red Robin shuttering 70 of its locations, and TGI Friday's filing for bankruptcy all in the span of six months. Is this a sign of the times?
Apparently so. Jack in the Box is the latest franchise to announce a big streamlining of its locations, announcing the closure of 150–200 underperforming restaurants. The move comes in a bid to help improve the long-term financial success of the company. During an investment meeting earlier this week, CEO Lance Tucker stated that, "Jack in the Box operates at its best, and maximizes shareholder return potential, within a simplified and asset-light business model." Part of his strategy is to shutter these underperforming locations as a way to "return to simplicity for the Jack in the Box business model and investor story,” he said. The company plans to close between 80 and 120 restaurants by the end of 2025, with the remainder of the underperforming restaurants to close afterward, "based upon respective franchise agreement termination dates."
Another shocking revelation that came out of this meeting? As the parent company to Del Taco, which was purchased back in 2022, Jack in the Box representatives stated that they are exploring the possibility of selling the Mexican-inspired franchise. Both companies have seen a decrease in sales during the second quarter of 2025—Del Taco's sales are down 3.6% while Jack in the Box's sales are down 4.4%.
Will this Hail Mary be enough to save the brand? Only time will tell.
