Jack In The Box 2005 Annual Report Download - page 10

BY THE
NUMBERS
Qdoba Mexican Grill, which celebrated its 10th anniversary in 2005, is
a fast-growing, fast-casual dining concept that offers familiar Mexican food
with a nouveau Mexican twist. Take our burritos, for example. Our use of
fresh ingredients and an innovative combination of sauces, salsas and
marinades create a menu of large signature burritos that guests crave,
including poblano pesto, fajita ranchera and chicken molé.
We know that fresh is best, that’s why the bell peppers and onions for our
fajita veggies are chopped as needed, as are the yellow squash, zucchini and
red peppers for our grilled veggies. Our homemade chips, another
guest favorite, are made with real lime and salt while the
guacamolé is made daily from Hass avocados. Pinto
and black beans simmer with onions and
cumin. The chicken and steak marinate in
our own special blend of seasonings, and
the shredded beef that marinates in our
distinctive blend of adobo spices is
slow cooked for hours. Our policy on
shortcuts: don’t take them. At Qdoba, it’s all about the food.
Entrées are prepared in front of our guests and topped with their personally
selected ingredients, including one of five distinctive salsas. Qdoba’s unique
flavors provide hundreds of ways to make an ordinary entrée extraordinary,
and because the food is made to order, right in front of the customer, he or
she has ultimate control.
Since Jack in the Box Inc. acquired Qdoba in 2003, the chain has nearly tripled
in size. We plan to continue aggressively growing the number of Qdoba
restaurants, predominantly through franchising. In addition
to constructing restaurants in stand-alone locations
as well as in large and small retail centers,
we’ve opened Qdoba restaurants in
college towns and in nontraditional
locations such as Sea-Tac Airport
in Seattle and the Prudential
Tower in Boston.
Quick Stuff is the proprietary convenience-store
concept owned and operated by Jack in the Box
Inc. Each Quick Stuff location includes a major-
brand fuel station and is built adjacent to a full-
size Jack in the Box restaurant, with an enclosed
foyer separating the two businesses. Open 24/7,
each Quick Stuff store stocks about 3,000 differ-
ent items, from toothpaste, deodorant and
motor oil to greeting cards, snacks and lottery
tickets. The current store design also includes
an ATM and an open-face dairy unit along with
nine cooler doors and two freezer doors.
These unique sites share more than just walls
and a parent company. They also share customers:
Both businesses are heavily frequented by 18- to
34-year-old guys.
Our Quick Stuff locations might not pencil out
for a stand-alone quick-serve restaurant, but
they’re ideal for a three-in-one facility that can
share development costs and generate higher
overall returns. With a Jack in the Box restaurant
averaging about 2,300 square feet, we prefer at
least an acre to develop this co-branded concept.
Once a site is identified, we build it out in a
manner that ensures good traffic flow onto and
off of the property. Customers must be able to
get in and out quickly – whether they’re going
to Quick Stuff or Jack in the Box. It’s all about
convenience.
We plan to leverage the Quick Stuff concept to
facilitate our entry into new contiguous markets,
beginning in fiscal 2006. We benefit from the
combined revenues, profits and shared develop-
ment costs of three separate businesses while
securing the best possible locations in high-
traffic areas. And our existing infrastructure
of operations and distribution capabilities can
efficiently support these new locations.
WITH A DISTINCTIVE DÉCOR AND COOL ATMOSPHERE, QUICK STUFF
BREAKS FROM THE COOKIE-CUTTER DESIGN AND CANNED
DEMEANOR OF BIG-OIL CONVENIENCE STORES. WHILE OUR
FRIENDLY STAFF ATTENTIVELY TENDS TO OUR CUSTOMERS’ EVERY
NEED, AN ANIMATED FAMILY OF CHARACTERS NAMED “Q BALL,”
“SUZIE Q” AND “Q-TIP” CLEVERLY PROMOTE MERCHANDISE AND
BEVERAGES. AND TALK ABOUT CLEAN – EVERY INCH OF THE
STORE SPARKLES, FROM THE AISLES TO THE RESTROOMS.
ALTHOUGH QDOBA IS KNOWN FOR LARGE BURRITOS,
OUR MENU IS OVERFLOWING WITH ORIGINAL FLAVORS
LIKE OUR SIGNATURE BURRITOS, GRILLED QUESADILLAS,
TACOS, FRESH TACO SALADS, NAKED BURRITOS®,
3-CHEESE NACHOS AND SPICY TORTILLA SOUP. TO
TOP EVERYTHING OFF, GUESTS CAN CHOOSE FROM
10 UNIQUE SALSAS AND SAUCES, LIKE OUR HOMEMADE
GUACAMOLÉ AND WARM 3-CHEESE QUESO.
Serving delicious burgers and shakes since 1951, Jack in the Box
is a pioneer of the quick-serve restaurant industry and drive-thru
dining. While burgers like our signature Jumbo Jack®, Sourdough
Jack®and Ultimate Cheeseburger remain our best-selling products,
we’re enhancing our menu with high-quality ingredients and adding
new products that appeal to a broader audience of consumers.
Examples include our line of ciabatta burgers and sandwiches,
entrée salads and Natural Cut Fries. Menu innovation is the first
key element of our holistic approach to reinvent the Jack in the Boxbrand.
We’re also implementing major initiatives to improve service levels, the second major component
of brand reinvention. Improving guest service by improving the level of service that we provide
our employees supports a business model called the “service-profit chain,” which links internal
service to guest satisfaction and, ultimately, higher revenues and profits. In recent months, we’ve
launched several internal-service programs to attract higher-quality applicants for crewmember
positions and improve employee productivity. Examples include our interactive computer-based
training program, an affordable healthcare program for all hourly employees, and an ESL (English-
as-a-second-language) program that provides our Spanish-speaking workers an opportunity to
improve their English skills. Programs like these are helping Jack in the Boxretain its restaurant
workforce and reduce crew turnover, which provides an additional benefit to our bottom line by
reducing new-employee training costs.
The third major component of brand reinvention is re-imaging our Jack in the Box
restaurants. Like many customers, we’re tired of the red and yellow “sea of sameness”
that permeates the fast-food industry. That’s why we’re developing an entirely
new design scheme that will be much more than simply a fresh coat of
paint. The new look will include new furnishings and décor, like wall
murals and other decorative treatments featuring images of Jack from
his advertising campaign; distinctive wall coverings and flooring with
unique color patterns; ambient lighting, including wall fixtures and
pendants; and a mix of seating arrangements. It’s all intended to
differentiate Jack in the Boxfrom other chains and provide our
guests a truly unique dining experience.
Just two years into brand reinvention, we’re already seeing a positive
impact on our business, as evidenced by feedback collected from
customers and shared with restaurant management via a new
program called “Voice of the Customer.” By calling the phone
number or logging onto the Web address printed on their
order receipt, guests rate their dining experience by
answering questions on attributes ranging from food
freshness to speed of service. Since the program
was rolled out near the beginning of fiscal 2005,
our restaurants have seen improvement in
their overall guest-satisfaction scores.
JACK’S POPULAR COMMERCIAL “HIPPY HIPPY SHAKE”
EXTOLLED THE VIRTUES OF HIS REAL ICE CREAM CONFEC-
TIONS AND PORTRAYED THE COMPANY AS A FUN PLACE TO
WORK, SOMETHING CONFIRMED BY NATION’S RESTAURANT
NEWS AND THE NATIONAL RESTAURANT ASSOCIATION
EDUCATIONAL FOUNDATION, WHICH IN SEPTEMBER GAVE
JACK IN THE BOX INC. THEIR INAUGURAL SPIRIT AWARD
FOR SUPPORTING EMPLOYEES WITH INNOVATIVE WORK-
FORCE PROGRAMS, LIKE ACCESS TO AFFORDABLE
HEALTHCARE, COMPUTER-BASED TRAINING AND AN ESL
(ENGLISH-AS-A-SECOND-LANGUAGE) PROGRAM FOR
SPANISH-SPEAKING WORKERS.
ONE OF THE TEST KITCHENS AT THE COMPANY'S STATE-
OF-THE-ART INNOVATION CENTER IN SAN DIEGO, WHERE
THE COMPANY IS DEVELOPING NEW MENU ITEMS FEATURING
HIGH-QUALITY INGREDIENTS.
With three strong
brands in our portfolio
Jack in the Box Inc.
is well on its way to
becoming a national
restaurant company.
BY THE
NUMBERS
30,000 Space, in square feet, occupied by test kitchens, labs and consumer
research facilities at the Jack in the Box Innovation Center
2,049 Number of company and franchised restaurants
1989 Year in which sourdough bread was added to the menu
700 Oven temperature, in degrees Fahrenheit, at which tortillas are
baked for Jack’s tacos
140 Height, in feet, of the pole sign at Jack 3807 in Longview, Texas,
the tallest in our system
100 Maximum dollar value of a reloadable Jack Cash card (cards can
be reloaded with as little as $5)
69 Percentage of sales transacted at the drive-thru
27 Different versions of Jack antenna balls that have been offered
at restaurants
9Consecutive quarters of same-store sales growth
4Number of major credit cards accepted: MasterCard, Visa,
American Express and Discover
BY THE
NUMBERS
3,000 Items in stock, from
toothpaste to motor oil
1998 Year in which first Quick Stuff
opened – in Sacramento, Calif.
64 Capacity, in ounces, of largest
dispensed soda beverage
44 Number of locations
24 Hours of operation,
7 days a week
6Different brands of fuel dis-
pensed, from Chevron to Shell
3Number of businesses operated
by the company at each location,
including restaurant, convenience
store and fuel station
0The number of times the letter
Q appears in a U.S. state name
2003 Year that Jack in the Box Inc.
acquired Qdoba Restaurant
Corporation
250 Number of company and
franchised restaurants
194 Percentage increase in the
system total of Qdoba locations
since Jack in the Box Inc.
acquired the chain in 2003.
50 Approximate age, in years,
when a saguaro cactus, a
prominent element of Qdoba’s
logo, first sprouts arms
37 States with Qdoba restaurants
25 Consecutive quarters of
same-store sales growth
11.8 Percentage increase in same-
store sales in 2005, on top of a
9.3 percent increase in 2004
3Varieties of cheese in Qdoba’s
Warm 3-Cheese Queso Dip –
one of the most popular items!
“
”
Since Jack in the Box
Inc. acquired Qdoba
in 2003, the chain has
nearly tripled in size.
“
”
We plan to leverage
the Quick Stuff concept
to facilitate our entry
into new contiguous
markets, beginning in
fiscal 2006.
“
”
A NEW QDOBA RESTAURANT IN SEATTLE-TACOMA INTERNATIONAL AIRPORT. WITH FRESHLY MADE, NOUVEAU-MEXICAN FLAVORS THAT ARE CUSTOMIZABLE, THERE
ARE LOTS OF THINGS TO LOVE AT QDOBA, LIKE OUR POBLANO PESTO BURRITO.