Financing

3 executives leave amid Jack in the Box cost cuts

The company’s chief legal officer and chief of staff are among those leaving as the chain cuts corporate overhead.
Photograph: Shutterstock

Jack in the Box on Friday announced the departure of three executives amid continued cuts to corporate overhead at the San Diego-based chain.

The company said that Phillip Rudolph, chief legal and risk officer, will leave next February.

Mark Blankenship, the company’s chief of staff and strategy, and Paul Melancon, the company’s controller and treasurer, will both leave in early January.

Jack in the Box said that the responsibilities of all three “will be assumed by others in the organization.”

“Jack in the Box Inc. has changed significantly in just the past few years, and the organization’s leadership structure is evolving to support a single restaurant brand,” CEO Lenny Comma said in a statement.

The departures come as the company has aggressively cut costs in general and administrative spending, also known as G&A or corporate overhead. The company sold its Qdoba Mexican Eats brand in early 2018 to concentrate on the 2,200-unit Jack in the Box.

The company has wanted to get its corporate overhead spending down to 1.8% of revenues, from 3.8%.

That shift has already led to tension within the brand: Operators last year passed a vote of no confidence in Comma, then filed a lawsuit against the company.

The departing executives each have at least 12 years of experience with the company. Rudolph has been with the company for 12 years; Melancon for 14 and Blankenship for 22.

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