The fast food chain Jack in the Box has announced plans to close up to 200 low -performance restaurant locations as US customers continue to reduce spending.
The franchise said that from 80 to 120 restaurants would be closed by the end of the year, and the rest of the Low Fine Loss of profit will be closed according to the franchise agreements.
Jack in the Box currently operates 2,200 locations in 22 states, most of which are found on the west coast. California has 942 restaurants, representing 43 percent of the company's total.
The closures, under a new “Jack On Track” plan, are destined to “address the balance sheet to accelerate cash flow and pay the debt,” said CEO Lance Tucker in a statement. Tucker was introduced as CEO on March 31.
He continued: “By preserving capital -oriented capital investments related to technology and the reimmission of restaurants; closing low -performance restaurants to position themselves for a growth of consistent net units and an economy of competitive units and a general return to simplicity for the business model and the history of Jack in the Box investors.”
The franchise also hopes to pay $ 300 million in debt in the next two years when closing these locations.
Jack in the Box has not yet announced the specific locations of the restaurants that are expected to close. Independent He has contacted the franchise for a comment.
The announcement occurs when the company continues to follow the sale of another of its brands, the cooking chain inspired by Mexican taco.
However, according to the press release of April 23, the sale has been full of problems, which leads the company to consider other options.
“As part of the plan, the company has hired Bofa values to help in the process of exploring strategic alternatives for the TACO brand, including possible business disinversion,” the statement said.
Tucker said: “I do not know if the results (of the taco) in the coming years will contribute significantly to the final result of Jack.”
Then he said: “It makes sense to transfer them to another owner.”
But Jack in the Box is not the only chain full of problems.
Macy's also announced plans to close 66 stores of stores and their iconic Fulton Street location in Brooklyn after 30 years at the end of 2025.
