Jack In The Box 2005 Annual Report Download - page 19

Strategic Plan - Brand Reinvention. We believe that brand reinvention will clearly differentiate us from our
competition and make JACK IN THE BOX a preferred brand by offering customers a better restaurant experience than typically
found in the QSR segment today. We intend to continue to use the learnings from our JBX Grill test, which was cancelled in
fiscal 2005, as a catalyst for developing innovative new menu items, service initiatives and creative restaurant design elements
for use across the more than 2,000 existing restaurants comprising our core JACK IN THE BOX brand. Brand reinvention will
include changes to the following aspects of the restaurant experience:
• Menu Innovation. We believe that product innovation and our focus on higher-quality products will further differentiate our
menu from competitors, strengthen our brand and appeal to a broader consumer audience. In support of these initiatives, in
fiscal 2005, we successfully introduced our new line of Ciabatta sandwiches, including the Bruschetta Chicken Ciabatta and
the Bacon ‘n’ Cheese Ciabatta burger. Additional premium-quality products are in various stages of test and development
as we continue to enhance product quality and innovation as a means to differentiate our menu from other quick-service
chains.
• Improved Service. A second major aspect of brand reinvention involves enhancements to the quality of our service. Fiscal
year 2005 service initiatives included a more comprehensive program for evaluating customer service directly from the
guest’ s perspective and a new benefit plan for crew members which is expected to contribute a higher and more consistent
level of guest service by improving retention and reducing training costs. Other recent enhancements include the
implementation of computer-based training (“CBT”) in our restaurants, an English-as-a-second-language program for our
Spanish-speaking employees designed to improve their English skills, and the rollout of our point-of-sale (“POS”) system
which permits credit card purchases, resulting in higher check averages. Our POS system reduces transaction processing
times, while providing our customers with more convenient payment alternatives. Also, we completed the rollout of “Jack
Cash”, reloadable stored-value cards, to company and franchised restaurants.
• Re-Imaged Restaurants. The third important element of brand reinvention is the renovation of the restaurant facility. We
are testing unique and proprietary, interior and exterior, design schemes that will more fully incorporate our fictional
founder “Jack”, into the restaurant experience. We believe it is important to create a “destination dining” experience for
guests and remain consistent with our goals of upgrading the quality of our food and guest service. We began testing the
new interior and exterior designs for the restaurants at several locations in fiscal 2005, and plan on re-imaging 100-150
restaurants in fiscal 2006 at an average restaurant cost of approximately $100,000.
Strategic Plan - Product Innovation and Customer Loyalty Strategy. Added in the current year, this strategic
initiative focuses on driving product innovation and building customer loyalty for each of the Company’ s brands.
• Product Innovation. Developing a new pipeline of relevant and differentiated products that our guests crave is critical to
drive incremental traffic, increase the average check at JACK IN THE BOX and Qdoba restaurants and improve customer
loyalty. The extensive resources available at our Innovation Center, from test kitchens to consumer research facilities,
continue to allow us to efficiently develop new products and enhance our existing products.
• Customer Loyalty. Customer loyalty programs are also an important part of our long-term strategic plan. We intend to
continue to develop and expand our loyalty programs currently in various stages of implementation. In November 2004, we
rolled out our reloadable stored-value cards to company and franchised restaurants. Our Jack cash card was the first such
reloadable gift card among major QSR chains. Qdoba also offers a similar stored-value card, as well as a loyalty program
that enables guests to accumulate points with every purchase, ultimately rewarding frequent users with free entrees. Our
instant win promotions including “Win Jack’ s Stuff” and “Q up the Fun” may also be used to build loyalty by rewarding
customers with prizes ranging from food prizes and music downloads to a motorcycle or free airfare for a year and other
vacation packages.
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