Add thelocalreport.in As A Trusted Source
fan Favorite Burger PlaceJack in the Box has closed more than 70 restaurants this year, even with potential more stores To follow in the coming days.
earlier this year, Fast food franchise announced According to a press release, the plan is to permanently close 150 to 200 underperforming restaurants across the US. The move is part of the brand’s “Jack on Track” plan, which was aimed at improving the company’s financial position.
Jack in the Box said in April it would close 80 to 120 stores between then and Dec. 31. The company has since closed a total of 71 restaurants as part of the “Jack’s on Track” plan.
However, since the company has not yet reached its target number of closed restaurants, more shops may close in the next few days.
Independent A representative for Jack in the Box has been contacted for comment.
At the time of the April announcement, Jack in the Box was operating 2,200 locations in 22 states, the majority of which are located on the West Coast. There were 942 restaurants in California alone, 43 percent of the company’s total.
In an April press release announcing the “Jack’s on Track” plan, the company said that once its restaurant closure program is complete, “Jack in the Box expects consistent, positive net unit growth, helped by strong performance in new markets and tremendous whitespace opportunities.”
Jack in the Box Chief Executive Officer Lance Tucker said in a statement, “In my tenure as CEO, I have worked rapidly with my teams to conclude that Jack in the Box performs at its best, and maximizes shareholder return potential, within a simplified and asset-light business model.”
“Our actions today are focused 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 reimagining; closing underperforming restaurants to position ourselves for continued net unit growth and competitive unit economics; and, an overall return of simplicity to the Jack in the Box business model and investor story.”
The franchise was also expecting to pay off $300 million in debt over the next two years by closing these locations.
Meanwhile, Jack in the Box isn’t the only series beset with issues.