Jack In The Box 2006 Annual Report Download - page 20

Download and view the complete annual report

Please find page 20 of the 2006 Jack In The Box annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 88

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88

4
Restaurant Concepts
JACK IN THE BOX. JACK IN THE BOX restaurants offer a broad selection of distinctive, innovative products
targeted primarily at the adult fast-food consumer. The JACK IN THE BOX menu features a variety of hamburgers,
salads, specialty sandwiches, tacos, drinks and side items. Hamburger products include our signature Jumbo Jack®,
Sourdough Jack® and Ultimate Cheeseburger. JACK IN THE BOX restaurants also offer premium entrée salads and
sandwiches, to appeal to a broader customer base, including more women and consumers older than the traditional
QSR target market of 18-34 year old men. Furthermore, JACK IN THE BOX restaurants offer value-priced products,
known as “Jack’ s Value Menu,” to compete against price-oriented competitors and because value is important to
certain fast-food customers. JACK IN THE BOX restaurants offer customers both the ability to customize their meals
and to order any product, including breakfast items, anytime of the day. We believe that our distinctive menu has
been instrumental in developing brand loyalty and is appealing to customers with a broad range of food preferences.
Furthermore, we believe that, as a result of our diverse menu, our restaurants are less dependent than other quick-
service chains on the commercial success of one or a few products.
The JACK IN THE BOX restaurant chain was the first major hamburger chain to develop and expand the concept
of drive-thru restaurants. In addition to drive-thru windows, most of our restaurants have seating capacities ranging
from 20 to 100 persons and are open 18-24 hours a day. Drive-thru sales currently account for nearly 70% of sales at
company-operated restaurants.
The following table summarizes the changes in the number of company-operated and franchised JACK IN THE
BOX restaurants since the beginning of fiscal 2002:
Fiscal Year
2006 2005 2004 2003 2002
Company-operated restaurants:
Opened................................................................................................ 29 38 56 90 100
Sold to franchisees.............................................................................. (82) (58) (49) (36) (22)
Closed ................................................................................................. (6) (5) (2) (8) (3)
Acquired from franchisees.................................................................. — 1 — — 1
End of period total .............................................................................. 1,475 1,534 1,558 1,553 1,507
Franchised restaurants:
Opened................................................................................................ 7 11 5 3 3
Acquired from Company .................................................................... 82 58 49 36 22
Sold to Company ................................................................................ — (1) — — (1)
Closed ................................................................................................. — (1) — — —
End of period total .............................................................................. 604 515 448 394 355
System end of period total ...................................................................... 2,079 2,049 2,006 1,947 1,862
Qdoba. Qdoba restaurants offer a broad selection of fresh, high quality “Nouveau-Mexican” food with unique
bold tastes. The Qdoba menu fuses traditional Mexican flavors with popular flavors from other cuisines and features
a variety of signature burritos, the “Naked Burrito” (a burrito served in a bowl without the tortilla), non-traditional
taco salads, 3-cheese nachos and five signature salsas. Qdoba’ s broad menu allows it to satisfy multiple meal
occasions, both dine-in and take-out, for a wide variety of customers. Qdoba restaurants also offer a Q-to-Go® Hot
Taco Bar catering alternative, tailored to feeding 20-100, or more. The Q-to-Go Hot Taco Bar comes with
everything from serving utensils to grilled steak and chicken, tortillas, three unique salsas, toppings and dessert. The
seating capacity at Qdoba restaurants ranges from 60 to 80 persons, including outdoor patio seating availability.
Restaurant Expansion and Site Selection and Design
Restaurant Expansion. We opened 36 new JACK IN THE BOX company-operated and franchised restaurants in
fiscal 2006. In fiscal 2007, we plan to open 40-45 new JACK IN THE BOX restaurants, including franchised units. Our
long-term growth strategy includes continued restaurant expansion, including expansion into new contiguous
markets through Company investment and franchise development.