Jack In The Box 2009 Annual Report Download - page 4

Table of Contents
employee turnover at our restaurants also contributed to the higher guest-service scores. In recent years, we introduced several
internal service programs to help us improve employee retention and productivity at our restaurants, while also attracting higher-
quality applicants for team-member positions. These initiatives include access to affordable healthcare for our employees meeting
certain requirements, an ESL (English-as-a-second-language) program for our Spanish-speaking team members, and computer-
based training in all of our restaurants. Additionally, we are leveraging new technologies to improve service and guest satisfaction,
such as self-serve kiosks installed at certain Jack in the Box locations, which offer guests an alternative method of ordering
inside a restaurant. At fiscal year end, kiosks were installed in more than 200 company and franchised restaurants, and over
time, we plan to add them to additional restaurants where the frequency of use is expected to be highest. Our kiosk transactions
have higher check averages than orders processed at the service counters, partially due to our ability to customize messaging to
prompt add-on items.
• Environment. The third element of brand reinvention is the major renovation of our restaurants with a comprehensive re-image
of the facilities, including a complete redesign of the dining room and common areas, as well as other exterior enhancements such
as new paint schemes, lighting and landscaping. Approximately 46% of the Jack in the Box system now features all interior and
exterior elements of our re-image program, which enables us to portray a more cohesive and consistent brand image to our guests.
In 2009, we accelerated and substantially completed the exterior enhancements throughout the Jack in the Box system and will
now focus on re-imaging restaurant interiors, including franchise locations, which we expect to complete system-wide by the end
of fiscal year 2012. In fiscal 2009, we opened 63 of our newest restaurant prototype, which distinguishes Jack in the Box from
our competitors through innovative architectural elements and a flexible kitchen design that can accommodate future menu
offerings while maximizing productivity and throughput. Several energy-efficient and environmentally friendly amenities are
standard in our new prototype, including tankless water heaters and water-saving utilities, while solar lighting tubes, energy
management systems, synthetic turf and LED lighting are currently in test at several locations. In 2009, we also unveiled a new
logo that sends a clear signal to consumers that today’s Jack in the Box is not the Jack of the past. The new logo, which is
infused with the personality of our iconic founder, Jack, now appears on packaging, uniforms and in our advertising.
Restaurant signage is expected to be rolled out over the next three to five years.
Strategic Plan — Expand Franchising Operations. Our second strategic initiative is to continue expanding our franchising
operations to generate higher margins and returns for the Company while creating a business model that is less capital intensive and not
as susceptible to cost fluctuations. Through the sale of 194 company-operated Jack in the Box restaurants to franchisees and development
of 21 new franchised restaurants, we increased franchise ownership of the Jack in the Box system to approximately 46% at fiscal year
end from approximately 38% at the end of fiscal 2008. We remain on track with our long-term goal to increase franchise ownership to
approximately 70-80% of the system by the end of fiscal 2013. We also executed development agreements with several franchisees to
further expand the Jack in the Box brand in new and existing markets in 2010 and beyond. The Qdoba system is predominantly
franchised, and we anticipate that future growth will continue to be mostly franchised. In fiscal 2009, Qdoba franchisees opened 38
restaurants in existing and new markets.
Strategic Plan — Improve the Business Model. This sweeping strategy involves focusing our entire organization on improving
restaurant profitability and returns as well as on administrative efficiencies. We will continue to focus on reducing food, packaging and
labor costs through product design, menu innovation and operations simplification, as well as pricing optimization. We expect our
selling, general and administrative expenses to continue to decrease as we continue reengineering our processes and systems and transition
to a business model comprised of predominantly franchised restaurant locations.
Strategic Plan — Grow Jack in the Box and Qdoba Mexican Grill.
• Jack in the Box Growth. In fiscal 2009, 64 Jack in the Box restaurants opened, including 21 franchised locations. During the
year, we expanded into several new contiguous markets in Texas, Colorado, Oregon and New Mexico. As with other new-market
openings in recent years, the new restaurants generated significant traffic and sales. The first Colorado Springs restaurant, a
franchised location, had opening-week sales of more than $130,000 and opening-week sales at each of the first two Albuquerque
restaurants, also
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