THE CEO of a fast-food chain has made a stark admission after revealing that up to 200 restaurants will close.
Execs revealed a three-pronged strategy helped explain why the decision was taken to shutter the locations.
GettyBosses of a fast-food chain have unveiled plans to close stores[/caption]Jack in the Box bosses are planning to close up to 200 restaurants.
Between 80 and 120 restaurants are expected to shut by the end of the year.
Execs revealed that most of the sites had been trading for more than 30 years.
But, the pending closures amount to around 2% of the company’s store portfolio.
Lance Tucker, the restaurant chain’s CEO, issued a blistering warning on an earnings call, as reported by CBS News.
“Jack in the Box has gotten away from some of the core characteristics that have made it a successful driver of shareholder value in the past and it’s time we return to those basics,” he said.
Tucker also revealed that the shutdowns will help tackle the balance sheet.
Bosses are also working to clear debt and said shutting down the underperforming locations can help drive growth once again.
The company had also suffered from a dip in a store sales – around 4.4% in the second quarter of the year.
Tucker emphasized that the company is trying to simplify its business model.
Bosses are also looking at their investments.
It has been reported that Jack in the Box chiefs could sell Del Taco.
The company bought Del Taco in 2022 in a deal in the region of $585 million.
Darin Harris, who was CEO at the time of Jack in the Box’s takeover of Del Taco, explained that the move marked an “important milestone.”
“We have ambitious growth plans for our combined company, and we are excited for the many exciting opportunities ahead,” he said.
US braces for '45,000 store closures'
Some 45,000 bricks-and-mortar stores could close in the next five years, experts have warned.
Several major retailers have announced store closures or gone out of business altogether in recent years.
In 2023, chains such as Foot Locker announced plans to close up to 400 outlets by 2026.
While, other well-known retailers like Tuesday Morning and Mitchell Gold + Bob Williams filed for bankruptcy in 2023.
Bed Bath & Beyond has closed all of its brick-and-mortar stores and is now an online-only retailer.
The most affected retailers have been clothing, consumer electronics, sporting goods, hobby, book, music, and home furnishing stores since the start of 2019.
UBS has predicted the total number of retail stores will drop by 45k from 958k to 913k.
Despite that, the report says that certain stores should thrive while others decline.
It said retailers such as Walmart, Costco, Home Depot, and Target, could be among the winners.
Del Taco has almost 600 restaurants across the US.
Jack in the Box is not the only company that is trimming down its portfolio of stores or restaurants.
The U.S. Sun has extensively reported how more than 100 Macy’s stores are being closed.
The closures are part of the company’s three-year plan, which they unveiled last year.
Kohl’s bosses have closed down more than two dozen underperforming stores.
Party City bosses are also winding down operations after filing for bankruptcy.
Chiefs at the retailer Forever 21, and the crafts giant Jo-Ann are also in the process of closing down hundreds of stores.
All 800 Jo-Ann stores are set to close following the bankruptcy filing in February.
The future of Hooters restaurants remain uncertain after execs filed for bankruptcy.
Jack in the Box is struggling with sales and a downturn in trafficGetty Read More Details
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