Jack in the Box franchisees want to oust CEO

Jack in the Box Inc. has already dropped its famous two-for-99cents taco deal in some markets. Now, franchisees are hoping it dumps Chief Executive Officer Lenny Comma as well.

Citing weak sales, franchisees of the fast-food chain are urging the company to replace its CEO and remake the upper management team, including hiring a head of marketing. The group that represents about 89 percent of Jack in the Box’s 2,200 locations says its resources have been cut in recent years, hurting training and remodeling efforts and leading to a loss of confidence in company leadership.

“We really need change,” said Michael Norwich, chairman of the National Jack in the Box Franchisee Association. “Nobody is taking ownership and it’s resulting in the condition we’re in now.”

In response, the company said it has been open to “constructive feedback” from franchisees and will work with them “to develop and refine our strategy for success, and ensure our ultimate goals are fully aligned.”

“Importantly, we believe the viewpoints expressed today by the NFA leadership are not reflective of the entire franchise community,” Jack in the Box said in an emailed statement.

Comparable sales at Jack in the Box rose just 0.5 percent last year, trailing its burger peer group average of 1.5 percent, according to Bloomberg Intelligence data. Still, that marks a turnaround after several quarters of slipping sales — and Comma said in August that the positive momentum is continuing into the current quarter.

The company’s “primary impetus has been going asset-lite,” Norwich said, citing corporate layoffs. “We want to see focus on the topline sales number.”

Comma, who also serves as chairman, has been CEO of Jack in the Box since January 2014, and was chief operating officer before that.