Once a staple, now a memory: fast food restaurants closing over financial crunch

In a stark sign of financial distress, the once beloved fast food chain ‘Jack in the Box’ has closed 72 of its locations so far this year. With only a week left in 2025, even more closures are anticipated as part of a sweeping effort to cut costs and salvage the struggling fast-food chain.

The once-fan favourite burger joint, operational for 75 years, operates around 2,200 restaurants across the US. However, lately the chain has been grappling with a combination of rising costs, plummeting sales, and mounting debt. In an attempt to turn things around, Jack in the Box launched a cost-cutting initiative earlier this year, announcing plans to shut down 150 to 200 underperforming restaurants by 2026, with 80 to 120 closures targeted by the end of 2025. Despite efforts, the company is still falling short of its goal, with many locations in states like California, Texas, and Arizona affected.

While some might argue that the brand has been a staple of the fast-food scene for decades, the numbers don’t lie. After closing 12 locations in May and another 13 by August, the franchise’s financial struggles deepened with an additional 47 closures reported in November. With the company still short of its year-end target, it’s clear that Jack in the Box is desperately trying to cut its losses before the year’s end.

The closures come at a time when Jack in the Box has reported a troubling net loss of $80.7 million for the fiscal year that ended in September. To make matters worse, the company saw a significant 7.4 per cent drop in sales during the fourth quarter, marking the second consecutive quarter of declines. Rising beef prices and a heavy debt load have put added pressure on the chain, pushing it further away from the once-familiar buzz of the drive-thru lane.

Lance Tucker, the company’s CEO, said in April that the decision to close locations was part of a broader strategy to simplify operations and improve financial performance. “Our actions today focus on three main areas,” Tucker explained, emphasizing the importance of reducing debt, closing underperforming locations, and positioning the company for long-term growth. While Tucker remains optimistic about the future, the grim reality of closures has cast a shadow over the brand’s comeback.

This week, in another significant move, Jack in the Box completed the sale of Del Taco to Yadav Enterprises for $119 million. The decision to part ways with the fast-casual chain is part of a broader plan to streamline operations and focus on revitalizing its core business.

As the company navigates its way through a difficult phase, many are left wondering whether Jack in the Box can reclaim its place as a top player in the fast-food industry, or if it’s too late to turn things around.

For now, it seems that the once-thriving burger chain is facing a harsh reality, with more store closures looming and customers wondering what’s next for a brand they’ve known for so long.