Classic fast-food chain closing hundreds of locations | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Some fast-food chain have remained popular for decades despite people not really thinking the food is very good. A chain like White Castle, for example, sells burgers that barely contain any meat which have been well-loved for multiple generations.

It’s like there’s a place between good and bad where guilty pleasures get passed on from parents to children. Nobody, for example, (or at least very few people) think Little Caesar’s makes good pizza or that Subway offers top-tier sandwiches, but those chain’s, despite their ups and downs, have been enduring.

There are just certain brands which resonate with consumers even when the does not actually measure up. These might be the brands we seek out in a moment where we need comfort or late-night when we’ve already made other bad choices.

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Nobody plans to go to Arby’s, yet millions of people eat there. Taco Bell has its fans, but its brand has been built around, price, value, and the idea of the “fourth meal.” Few people who are not world-class athletes or Sumo wrestlers hear the term “fourth meal” and think, “that’s a good choice I’m making for me.

Jack in the Box has always been in this sort of unofficial category. It’s a beloved brand that has been endured since 1951, but the chain has lost its way and has shared its plan to get (as the company said in a press release, “Jack on track.”

Jack in the Box has a plan to close some stores.

Image source&colon; Shutterstock

Jack in the Box has a long history

Jack in the Box (JACK) has always been a fast-food brand that has done things a little differently. It offers a fairly traditional burgers and chicken sandwiches menu while it also has a full lineup of tacos.

The company explains its business on its franchising web page.

“Jack in the Box has always been the place for those who live outside the box. Where you can try new things and order what you want when you want it – while always getting it fast, hot, and fresh,” it shared.

The chain was founded in 1951 and also explained its unique name on its website.

Bankruptcies:

“When our first location opened in San Diego in 1951, it had a big jack-in-the-box clown on the roof. It was also one of the first restaurants with a drive-thru system. Plus, burgers only cost 18 cents,” it added.

Now, the company has reached a turning point and it has begun a plan to turn its business around.

Jack in the Box closing hundreds of restaurants

Jack in the Box management recently shared its “Jack on Track” plan which is a an effort to improve long-term financial performance across its restaurant system. The core goal is to move the company to a franchised “asset light” model.

As part of that plan, the company has hired BofA Securities to assist in the process of exploring strategic alternatives for the Del Taco brand, including a possible divestiture of the business.

The company will also shit down some locations of its namesake brand.

“Jack in the Box will implement a block closure program, which is projected to result in the closure of approximately 150-200 underperforming restaurants — a majority of which have been in the system for over three decades,” it shared.

It’s a plan that will happen in phases.

“The program will consist of approximately 80-120 restaurant closures between now and 12/31/2025, with the remaining underperforming restaurants closing thereafter based upon respective franchise agreement termination dates,” it added.

Jack in the Box also plans to cut spending. The chain will open fewer company-owned new locations than originally planned, but will continue to invest in improvements at its existing locations. It will also “continue to invest in its evolving technologies and digital capabilities, enabling significant growth through its digital sales channels,” the company shared.