This decision comes as part of a broader restructuring plan dubbed "JACK on Track", aimed at improving operational efficiency and long-term profitability.
Jack in the Box plans to close approximately 10% of its locations
Jack in the Box plans to close approximately 10% of its locations

Why Is Jack in the Box Closing Locations?

The closures aren’t random. The company has laid out clear reasons behind this move:

1. Underperforming Locations

Many of the restaurants on the chopping block have seen declining performance metrics, including:

  • Falling foot traffic

  • Poor sales-to-labor ratios

  • Outdated facilities

According to the company’s Q2 2025 report, same-store sales fell 4.4% year-over-year — a red flag that prompted leadership to act swiftly.

2. Shift Toward a Franchise-First Model

New CEO Lance Tucker, who took office in March 2025, is spearheading a transition to a leaner, asset-light model. This means fewer company-owned stores and more franchised units, which:

  • Reduces overhead costs

  • Transfers risk to franchisees

  • Improves return on investment (ROI)

3. Debt Reduction and Real Estate Optimization

Jack in the Box plans to sell real estate tied to company-owned stores and use the funds to pay down debt, which currently limits flexibility for growth. This financial restructuring includes:

  • Suspending shareholder dividends

  • Cutting corporate capital expenditures in 2026

  • Focusing on digital infrastructure instead of new builds

Which Locations Are Closing?

As of now, Jack in the Box has not released a complete list of affected locations, but here’s what we know:

  • Between 150 and 200 stores will close nationwide.

  • Around 80 to 120 stores will shutter by the end of 2025.

  • The rest will phase out as leases expire or franchise agreements end.

Closures are expected in high-cost, low-performance areas, particularly in:

  • California (especially older urban markets like Los Angeles and San Francisco)

  • Texas

  • Nevada

  • Washington

A detailed location list is expected during the company’s next earnings call in May 2025.

What About Del Taco?

Jack in the Box’s acquisition of Del Taco in 2022 for $575 million is also under review. The company has publicly stated that it is “exploring strategic alternatives,” which likely includes:

  • A full or partial sale

  • Spinning off Del Taco into an independent brand

  • Streamlining operations between the two chains

This move signals Jack in the Box’s desire to focus on core operations and reduce distractions during a critical financial transition.

What’s Next for the Brand?

Despite the closures, Jack in the Box is not retreating — it's pivoting.

Reinvestment in Core Assets

  • Renovating high-performing restaurants

  • Upgrading mobile ordering, delivery, and loyalty platforms

  • Introducing AI for supply chain and labor optimization

Targeted Expansion

While some stores are closing, Jack in the Box still plans to expand into new markets, especially in:

  • Florida

  • Georgia

  • Ohio

  • North Carolina

These markets offer lower labor costs, favorable real estate, and less saturation from direct competitors like McDonald’s, Wendy’s, and Burger King.

Industry Context: Jack in the Box Isn’t Alone

Jack in the Box is not the only major chain making cuts:

  • TGI Fridays closed 36 locations earlier in 2025.

  • Red Lobster is undergoing bankruptcy and restructuring.

  • Subway is aggressively franchising after closing hundreds of corporate stores.

The fast-food landscape is evolving fast. Inflation, wage pressures, and a post-COVID shift toward digital dining are forcing even established brands to adapt or fall behind.

What Customers Are Saying

On social media, reactions are mixed:

“Sad to see my local Jack in the Box go, but maybe this means better service at the ones that stay open.” – @foodiefeels

“Hope they invest in the app — online orders are the future.” – @munchymike

Jack in the Box has pledged to support affected employees with job placement assistance, severance, and options to transfer to nearby franchises.

What to Watch Next

Stay tuned for:

  • The May 2025 earnings call for the full closure list

  • Updates on Del Taco’s status

  • New franchise openings in emerging states

Bookmark this page or follow us for real-time updates as the story develops

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