Jack in the box, based in San Diego, has just announced that it would close 150-200 restaurants “to improve long -term financial performance in its restaurant system, strengthen its assessment and demonstrate its commitment to manage a light commercial model – which will all position the company for sustainable growth in the coming years.”
It is an appropriate way of saying that they consolidate and worthy of operations to remain viable.
Is this more evidence of the destruction of the law on minimum fast food wages $ 20 from California? Like Rebekah Paxton, director of research at the Institute of Employment Policy, recently said: “The law forced restaurants to increase their prices, which means that customers eat less, which has therefore made restaurants to reduce thousands of jobs or close a shop. It’s time for Newsom and the Seiu to cut out shit. ”
Jack in the box will close 150 to 200 “sub-performant” restaurants and said they will explore the sale of the Del Taco brand, which the company bought in 2022.
Jack In the Box calls this “Jack on Track” plan – “a complete series of actions to improve long -term financial performance in its restaurant system, strengthen its assessment and demonstrate its commitment to manage a light business model – which will all position the company for sustainable growth in the years to come.”
The CEO recently appointed Lance Tucker declared in a press release: “Our actions are concentrated today in three main areas: approaching our assessment to accelerate cash flows and reimburse debt, while preserving capital investments oriented towards growth linked to the growth of the technology unit and the motion of the restaurant;
California has 942 Jack in the Box Restaurants. “Jack in the box has acquired del taco in 2022 for around $ 585 million,” reports Times of San Diego. “The company operates around 2,200 jack in points of sale in 22 states. Del Taco has around 600 restaurants in 17 states. ”
According to the US Bureau of Labor Statistics, current employment statistics (CES), 22,717 fast food jobs have been lost in the past year when they have been adjusted seasonally. The Berkeley Research Group has also found that rapid feeding prices in California have increased by 14.5% since a year ago – around the national average by 8.2%. And this does not even accumulate in 89% of all state restaurants reducing employees to compensate for cost increase, 87% planning additional reductions in the next year, The globe has reported.
AB 1228 was promulgated by Governor Gavin Newsom on September 28, 2023, creating the new minimum wage of $ 20 for fast food employees – a massive increase of 25% compared to the minimum wage of $ 16.
There is no doubt that the cost of business in California with the minimum wage of $ 20 per hour, high costs of public services, high taxes, high public services, high gas prices, regulations on climate change and commerce, Calosha regulations, regulations for the air quality management district, compulsory overtime, And the myriad of Dei Dei regulations have led to Jack in the box.
