Jack In The Box 2009 Annual Report Download - page 9

Table of Contents
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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, documented restaurant practices and
detailed attention to product quality at every stage of the food preparation cycle. The USDA, FDA and the Center for Science in the Public
Interest have recognized our HACCP program as a leader in the industry.
In addition, our HACCP system uses ServSafe®, a nationally recognized food-safety training and certification program
administered in partnership with the National Restaurant Association. Jack in the Box Inc. is a member of the International Food Safety
Council, a coalition of industry members of the National Restaurant Association that have demonstrated a corporate commitment to food
safety. Our standards require that all restaurant managers and grill employees receive special grill certification training and be certified
annually.
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We provide purchasing, warehouse and distribution services for all Jack in the Box company-operated restaurants, nearly 74% of
our Jack in the Box franchise-operated restaurants, and approximately 45% of Qdoba’s company and franchise-operated restaurants. The
remaining Jack in the Box franchisees and 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 and franchise-operated
restaurants. In 2009, we outsourced the transportation services portion of our supply chain to JB Hunt as a means of reducing our risk
associated with the transportation business without increasing our costs.
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 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.
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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. Our restaurant satellite-enabled software allows for
daily, weekly and monthly polling of sales, inventory and labor data from the restaurants. We use a standardized Windows-based touch
screen point-of-sale (“POS”) platform in our Jack in the Box company and franchised restaurants, which allows us to accept credit cards
and JACK CA$H®, our re-loadable gift cards. We have an order confirmation system with color screens and contactless payment
technology throughout our system which allows us to accept new credit card types and to prepare for future innovation. We have also
developed business intelligence systems to provide visibility to the key metrics in the operation of company and franchised restaurants.
We use an interactive computer-based training (“CBT”) 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 enables timely deliveries to our restaurants
with excellent control over food safety. To support order accuracy and speed of service, our drive-thru restaurants use order confirmation
screens. Qdoba restaurants use POS software with touch screens, accept debit and credit cards at all 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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We build brand awareness through our marketing and advertising programs and activities. These activities are supported primarily
by contractual contributions from all company and franchised restaurants based on a
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