The move is part of the company’s new "JACK on Track" initiative aimed at accelerating cash flow, reducing debt, and returning to an "asset-light" business model. The company, which is headquartered right here in San Diego, operates more than 2,200 restaurants across 22 states, with a heavy concentration in Southern California. Its local presence and deep community roots make this development especially significant for San Diegans.
In a statement released Tuesday, newly appointed CEO Lance Tucker explained that the closures and other financial adjustments are part of a broader strategy to stabilize operations and boost long-term profitability. The plan also includes suspending dividends, reducing spending on new company-owned locations, and exploring strategic alternatives - including a possible sale - for its sister brand Del Taco, which Jack in the Box acquired in 2021.
In a statement released Tuesday, newly appointed CEO Lance Tucker explained that the closures and other financial adjustments are part of a broader strategy to stabilize operations and boost long-term profitability. The plan also includes suspending dividends, reducing spending on new company-owned locations, and exploring strategic alternatives - including a possible sale - for its sister brand Del Taco, which Jack in the Box acquired in 2021.
The company will close 150 to 200 low-performing restaurants, with 80 to 120 expected to shut their doors by the end of 2025. The remaining closures will follow as existing franchise agreements expire. Many of these restaurants, officials say, have been part of the system for over three decades. It remains unclear how many San Diego locations will be affected, though industry analysts expect some local impact given the region's high density of Jack in the Box restaurants.
Also hanging in the balance is the future of Del Taco, the nation's second-largest Mexican-American quick-service restaurant chain, with 600 locations nationwide. Jack in the Box says it has initiated a "strategic alternatives process" for Del Taco, which could mean a partial or full divestiture of the brand. The move raises concerns for dozens of Del Taco locations throughout Southern California, including multiple outposts in the San Diego region.
Also hanging in the balance is the future of Del Taco, the nation's second-largest Mexican-American quick-service restaurant chain, with 600 locations nationwide. Jack in the Box says it has initiated a "strategic alternatives process" for Del Taco, which could mean a partial or full divestiture of the brand. The move raises concerns for dozens of Del Taco locations throughout Southern California, including multiple outposts in the San Diego region.
The restructuring at Jack in the Box comes on the heels of financial turbulence at another iconic San Diego-based brand: Rubio's Coastal Grill. Known for pioneering the fish taco craze in the U.S., Rubio’s filed for Chapter 11 bankruptcy last year amid mounting debt and declining sales. The company was eventually sold to a private equity firm following a court-approved restructuring deal. Dozens of Rubio’s locations closed during the process, with a focus now on streamlining operations and reviving the brand. The back-to-back shakeups of these two homegrown chains highlight the growing pressures facing regional restaurant brands in today's economy.
Jack in the Box has long been a staple in San Diego's food scene. Founded in 1951 by local entrepreneur Robert O. Peterson, the first location opened on El Cajon Boulevard near 63rd Street and was a pioneer in drive-thru service. The brand’s whimsical marketing - especially its iconic mascot Jack - has made it a household name in the region. With the company's headquarters still based in San Diego, its future actions will have a significant economic and cultural impact on the city.
Jack in the Box has long been a staple in San Diego's food scene. Founded in 1951 by local entrepreneur Robert O. Peterson, the first location opened on El Cajon Boulevard near 63rd Street and was a pioneer in drive-thru service. The brand’s whimsical marketing - especially its iconic mascot Jack - has made it a household name in the region. With the company's headquarters still based in San Diego, its future actions will have a significant economic and cultural impact on the city.
In addition to closures, Jack in the Box plans to ramp up investment in its digital infrastructure, including mobile ordering and delivery platforms. The company also says it will continue to upgrade existing locations with modern technology and refreshed designs, even as it pulls back on opening new company-owned stores.
Preliminary Q2 financial results released alongside the restructuring plan showed same-store sales declines of 4.4% for Jack in the Box and 3.6% for Del Taco. The company also announced $66–$68 million in adjusted EBITDA for the quarter, with additional details expected during a full earnings call on May 14.
San Diegans can expect to learn more about local impacts in the coming months as the company finalizes its closure list and continues its path toward what executives hope will be a more sustainable and streamlined business model.
For updates, visit jackinthebox.com or deltaco.com.
Preliminary Q2 financial results released alongside the restructuring plan showed same-store sales declines of 4.4% for Jack in the Box and 3.6% for Del Taco. The company also announced $66–$68 million in adjusted EBITDA for the quarter, with additional details expected during a full earnings call on May 14.
San Diegans can expect to learn more about local impacts in the coming months as the company finalizes its closure list and continues its path toward what executives hope will be a more sustainable and streamlined business model.
For updates, visit jackinthebox.com or deltaco.com.
Originally published on April 24, 2025.