Fast-food chain Jack in the box has announced a plan to shut down 200 underperforming restaurant locations as American customers keep cutting back at the expense.
The franchise said that by the end of the year 80 to 120 restaurants would be closed, and the rest of the low-profit locations would be closed on the basis of franchise agreements.
Jack in the box currently operates 2,200 locations in 22 states, most of which are located on the West Coast. California has 942 restaurants, which constitute 43 percent of the company’s total.
CEO Lance Tucker said in a statement, “Under a new” Jack on Track “scheme,” to speed up cash flow and address the balance sheet to pay loans, “CEO Lance Tucker said in a statement. Tucker was started as CEO on 31 March.
He continued: “Closing the underperforming restaurants to keep the development-oriented capital investments related to technology and restaurant Remage; Closing the underperforming restaurants to keep itself in position for the constant net unit development and competitive unit economics; and, a composite return to simplicity for jack in box business models and investors in the box business model and investor story.”
The franchise also expects to repay a loan of $ 300 million in the next two years by closing these places.
Jack in the box has not yet announced specific restaurant locations, which are expected to be closed. Independent Has contacted the franchise for a comment.
The announcement has been made when the company continues to carry forward the sale of any other brand, Mexican-inspired food chain del Tacco.
However, according to the April 23 press release, sales are filled with issues, which the company is considering other options.
“As part of the scheme, the company has imposed bofa securities to assist in the process of discovering strategic options for the Dell Taco brand, including the statement, including the possible division of business.”
Tucker said: “I don’t know that over the next several years (Dale Tacco) results are going to make a meaningful contribution to the lower line of Jack.”
He then said, “It makes sense to take him to another owner.”
But Jack in the box is not the only series filled with issues.
Massey also announced a plan to close 66 store locations in Brooklyn and its prestigious Fulton Street location after 30 years by the end of 2025.
