Jack In The Box 2005 Annual Report Download - page 25

Competition and Markets
The restaurant business is highly competitive and is affected by the competitive changes in a geographic area, changes
in the public’ s eating habits and preferences, local and national economic conditions affecting consumer spending habits,
population trends and traffic patterns. Key elements of competition in the industry are the quality and value of the food products
offered, price, quality and speed of service, advertising, name identification, restaurant location and attractiveness of facilities.
Each JACK IN THE BOX and Qdoba restaurant competes directly and indirectly with a large number of national and
regional restaurant chains, as well as with locally owned quick-service restaurants and the fast casual segment. In selling
franchises, we compete with many other restaurant franchisers, some of whom have substantially greater financial resources and
higher total sales volume.
Regulation
Each restaurant is subject to regulation by federal agencies, as well as licensing and regulation by state and local health,
sanitation, safety, fire and other departments. Difficulties or failures in obtaining any required licensing or approval could result
in delays or cancellations in the opening of new restaurants.
We are also subject to federal and state laws regulating the offer and sale of franchises. Such laws impose registration
and disclosure requirements on franchisors in the offer and sale of franchises and may also apply substantive standards to the
relationship between franchisor and franchisee, including limitations on the ability of franchisers to terminate franchisees and
alter franchise arrangements. We believe we are operating in compliance with applicable laws and regulations governing our
operations.
We are subject to the Fair Labor Standards Act and various state laws governing such matters as minimum wages,
exempt status classification, overtime and other working conditions. A significant number of our food service personnel are paid
at rates related to the federal and state minimum wage, and, accordingly, increases in the minimum wage increase our labor costs.
Federal and state laws may also require us to provide paid and unpaid leave to our employees, which could result in significant
additional expense to us.
We are subject to certain guidelines under the Americans with Disabilities Act of 1990 (“ADA”) and various state
codes and regulations, which require restaurants to provide full and equal access to persons with physical disabilities. To comply
with such laws and regulations, the cost of remodeling and developing restaurants has increased, principally due to the need to
provide certain older restaurants with ramps, wider doors, larger restrooms and other conveniences.
We are also subject to various federal, state and local laws regulating the discharge of materials into the environment.
The cost of developing restaurants has increased to comply with these laws. Additional costs relate primarily to the necessity of
obtaining more land, landscaping and below surface storm drainage and the cost of more expensive equipment necessary to
decrease the amount of effluent emitted into the air and ground.
Our QUICK STUFF convenience stores sell alcoholic beverages which require licensing. The regulations governing
licensing may impose requirements on licensees including minimum age of employees, hours of operation, advertising and
handling of alcoholic beverages. The failure of a QUICK STUFF convenience store to obtain or retain a license could adversely
affect the store’ s results of operations. We believe we are operating in compliance with applicable laws and regulations
governing alcoholic beverages.
Company Website
The Company's primary website can be found at www.jackinthebox.com. The Company makes available free of
charge at this website (under the caption "Investors - SEC Filings - SEC Filings by Jack in the Box Inc.") all of its reports filed or
furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, including its Annual Report on Form 10-K,
its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K and amendments to those reports. These reports are
made available on the website as soon as reasonably practicable after their filing with, or furnishing to, the Securities and
Exchange Commission. Furthermore, we also make available on our website, and in print to any shareholder who requests it, the
Company’ s Corporate Governance Guidelines, the Committee Charters for Audit, Compensation, and Nominating and
Governance Committees, as well as the Code of Ethics that applies to all directors, officers and employees of the Company.
Amendments to these documents or waivers related to the Code of Ethics will be made available on the Company’ s website as
soon as reasonably practicable after their execution.
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