Jack In The Box 2005 Annual Report Download - page 22

technology incorporates audio, video and text, all of which are updated on the computer via satellite technology. CBT is also
designed to reduce the administrative demands on restaurant managers.
Regional vice presidents or regional directors supervise area coaches who supervise restaurant managers. Under our
performance system, regional vice presidents, regional directors, area coaches and restaurant managers are eligible for periodic
bonuses based on achievement of location profit, profit improvement and/or certain other operational performance standards.
Customer Satisfaction. We devote significant resources toward ensuring that all restaurants offer quality food and good
service. Emphasis is placed on ensuring that ingredients are delivered timely to the restaurants. Restaurant food production
systems are continuously developed and improved, and we train our employees to be dedicated to delivering consistently good
service. Through our network of distribution, quality assurance, facilities services and restaurant management personnel, we
standardize specifications for food preparation and service, employee conduct and appearance, and the maintenance and repair of
our premises. Operating specifications and procedures are documented in on-line reference manuals and CBT presentations.
During fiscal year 2005, most JACK IN THE BOX restaurants received approximately four quality, food safety and cleanliness
inspections. The “Voice of the Customer” program was rolled out in fiscal year 2005 and provides restaurant managers with
several guest surveys each week regarding their JACK IN THE BOX experience.
Quality Assurance
Our “farm-to-fork” food safety and quality assurance program is designed to maintain high standards for the food
products and food preparation procedures used by company-operated and franchised restaurants. We maintain product
specifications and approve product sources. We have a comprehensive, restaurant-based Hazard Analysis & Critical Control
Points (“HACCP”) system for managing food safety and quality. HACCP combines employee training, testing by suppliers, and
detailed attention to product quality at every stage of the food preparation cycle. Our HACCP program has been recognized as a
leader in the industry by the USDA, FDA and the Center for Science in the Public Interest. For example, in 2004, we won the
Black Pearl Award, presented annually by the International Association of Food Protection to the company that most successfully
advances food safety and quality in the world.
In addition, our HACCP system uses ServSafe®, a nationally recognized food-safety training and certification program
administered in partnership with the National Restaurant Association. All restaurant managers and grill employees receive
special grill certification training and are certified annually.
Purchasing and Distribution
We provide purchasing, warehouse and distribution services for all JACK IN THE BOX company-operated and nearly
64% of our franchise-operated restaurants. The remaining JACK IN THE BOX franchisees participate in a purchasing cooperative
they formed in 1996 and contract with another supplier for distribution services. As of October 2, 2005, we also provided these
services to approximately 45% of Qdoba’ s company and franchise-operated restaurants. The remaining Qdoba restaurants
purchase product from approved suppliers and distributors. Some products, primarily dairy and bakery items are delivered
directly by approved suppliers to both company-operated and franchised restaurants.
Regardless of whether we provide distribution services to a restaurant or not, we require that all suppliers meet our
strict HACCP program standards previously discussed. The primary commodities purchased by the restaurants are beef, poultry,
pork, cheese and produce. We monitor the primary commodities we purchase in order to minimize the impact of fluctuations in
price and availability, and make advance purchases of commodities when considered to be advantageous. However, certain
commodities still remain subject to price fluctuations. All essential food and beverage products are available, or can be made
available, upon short notice from alternative qualified suppliers.
Information Systems
We have centralized financial and accounting systems for company-operated restaurants, which we believe are
important in analyzing and improving profit margins and accumulating marketing information for analysis. Our restaurant
satellite-enabled software allows for daily, weekly and monthly polling of sales, inventory and labor data from the restaurants.
JACK IN THE BOX restaurants use a standardized windows based touch screen POS platform among all company and franchised
restaurants, which allows us to accept credit cards and Jack's Cash re-loadable gift cards. We have also developed several
systems to assist restaurant managers in overseeing the daily operations of their restaurants. We use an interactive computer-
based training system in our JACK IN THE BOX restaurants as the standard training tool for new hire training and periodic
workstation re-certifications, and have a labor scheduling system to assist in managing labor hours based on forecasted sales
volumes. We also have a highly reliable inventory management system, which provides consistent deliveries to our restaurants
with excellent control over food safety, and, to support order accuracy and speed of service, our drive-thru restaurants use order
confirmation screens. We are currently in the process of updating our order confirmation screens with new larger, color screens.
Qdoba restaurants use POS software with touch screens, accept debit and credit cards at all company-owned locations and use
back-of-the-restaurant software to control purchasing, inventory, food and labor costs. These software products have been
customized to meet Qdoba’ s operating standards.
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