If you’ve recently seen headlines announcing Del Taco restaurant closures, you might assume the brand is vanishing. Many business owners and operators are wondering: is Del Taco going out of business completely? Let’s get the record straight no, Del Taco is not shutting down nationwide. But big changes are shaking up the company, and the signals are worth watching closely.
Focus on understanding how these kinds of changes affect your own strategy. When a well-known chain restructures, it can mean new risks but also new opportunities for competitors, suppliers, and industry partners. Let’s break down what’s really happening at Del Taco and how you can apply the lessons to your own business.
Store Closures Overview: What’s Actually Closing?
Here’s the first big headline: Del Taco’s parent company, Jack in the Box, is closing 150 to 200 restaurants across its brands by the end of 2025. Most of these closures between 80 and 120 will happen throughout 2025.
Did you know? The company has not publicly shared how many of these will be Del Taco versus Jack in the Box stores. The closures focus almost entirely on locations with poor sales or high operating costs. Successful restaurants are staying open. So, this isn’t about a system-wide collapse, but a targeted attempt to cut losses and refocus resources.
For comparison, closures like these are common when a publicly traded company faces profit pressures. Think of it as pruning the business, not pulling it up by the roots.
Key takeaway: Store closures are a normal, if sometimes painful, part of staying healthy for franchise businesses. Review your own locations regularly—and don’t be afraid to make tough calls to protect your core.
Potential Sale of the Del Taco Brand: Why Ownership Could Change
Here’s where things get interesting for anyone watching restaurant mergers and acquisitions. Jack in the Box announced it is exploring “strategic alternatives” for Del Taco. That’s corporate speak for: we might sell the entire Del Taco brand.
What does this mean for the chain’s future? Even if the brand is sold, it’s not going away—at least, not right away. The most likely outcome if a sale goes through: Del Taco ends up with a new parent company, possibly one with experience in fast-casual or franchise restaurant brands.
If you’re in franchising or foodservice, use this as a reminder to review contract terms often. When ownership changes, so can everything from supply contracts to marketing investment. Focus on building flexibility into your agreements, so you aren’t caught off guard.
Tip: Stay visible during ownership transitions. Communicate actively with both your franchisees and suppliers to reinforce trust and stability.
Recent Regional Closures: Spotlight on Colorado
In early 2025, customers in Colorado got a shock: 18 Del Taco locations in the state closed practically overnight. Some folks assumed the chain was shutting down everywhere, but this was actually a unique situation triggered by the bankruptcy of a regional franchisee.
Here’s what happened, step-by-step:
1. The franchise operator fell behind on payments and other financial obligations.
2. Disputes between Jack in the Box and the franchise owner escalated.
3. Rather than working through a gradual wind-down, the franchisee abruptly closed all but one Del Taco restaurant in Colorado.
For business owners, there’s a clear lesson here: keep a close eye on franchisees’ financial health and don’t let red flags linger. If you work with franchise partners, invest in ongoing training and detailed performance reviews. Early detection of issues can limit disruption for both sides.
Remember: Region-specific closures are not the same as a company-wide shutdown. The chain remains active in dozens of other states.
Industry-Wide Challenges: Patterns Worth Studying
Del Taco isn’t the only brand under pressure. The fast-food sector is facing a triple squeeze:
- High inflation is driving up food and labor costs.
- Many customers are eating out less frequently or trading down to cheaper options.
- The aftereffects of the COVID-19 pandemic still haunt the bottom line for a lot of chains.
You’ve probably noticed similar challenges in your own area. Operators are reviewing every location, renegotiating leases, and looking for ways to automate where possible. For example, Pizza Hut, Subway, Hardee’s, and Burger King have all closed hundreds of stores recently—not because of irreparable brand damage, but due to the need for leaner operations.
Balance staying committed to your brand with adapting to new consumer spending habits. For some, this might mean shrinking footprints, while for others, it’s about finding the right niche and doubling down.
Key takeaway: If legacy chains like Del Taco need to restructure, smaller or independent chains should be even more vigilant. Review your cost structure, debt levels, and lease agreements now, not later.
Future Prospects for Del Taco: What’s Next?
So, what does the future look like for Del Taco after this wave of closures and the threat of a sale? The brand is still operating in multiple states and serving millions of customers. If Jack in the Box does sell Del Taco, the new owner may choose to invest and expand—or it could mean more belt-tightening before any growth.
For now, Del Taco is focusing on:
- Closing underperforming stores to boost profitability for the healthy locations.
- Reviewing its menu and pricing to attract more value-conscious consumers.
- Testing new technology, such as online ordering and delivery partnerships, to meet changing customer habits.
If you operate in a competitive market, study these adjustments. Focus on your most profitable lines and consider spinning off or discontinuing anything that drags you down. Sometimes, less really is more.
As you scale, keep your stakeholder communications clear and honest. Don’t sugarcoat tough news, but spotlight the things you’re doing to lay a strong foundation for the future.
Tip: Use periods of uncertainty to experiment. For example, test new loyalty programs or digital ordering systems while the spotlight is on other brands.
Conclusion
Let’s return to the central question: is Del Taco going out of business? No, but it is entering a period of serious restructuring and possible new ownership. If you’re part of Del Taco’s ecosystem whether as a franchisee, supplier, landlord, or customer don’t expect things to stay static. This transition phase requires diligence and communication from every stakeholder.
Focus on the customers you already have before chasing new ones. Invest in strengthening relationships with your team and suppliers. If you’re watching from outside the chain, reflect on how these industry shifts could impact your own niche or competitive positioning.
For further industry news and ongoing coverage of brands like Del Taco, check out Mega Business Journal for weekly updates and actionable insights.
Review regularly change is the only constant in foodservice, and those who adapt quickly thrive. Key takeaway: Del Taco is not disappearing, but it is transforming. Use that example as a prompt to stress-test your own operations and prepare for steady, sustainable growth.
Stay informed. Expect more changes ahead and use every shakeup as an opening for new ideas in your own business.
