Jack In The Box 2006 Annual Report Download - page 22

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6
Restaurant Operations
Restaurant Management. Each restaurant is operated by a company-employed manager or a franchisee who is
directly responsible for the operations of the restaurant, including product quality, service, food handling safety,
cleanliness, inventory, cash control and the conduct and appearance of employees. Our restaurant managers attend
extensive management training classes involving a combination of classroom instruction and on-the-job training in
specially designated training restaurants. Restaurant managers and supervisory personnel train other restaurant
employees in accordance with detailed procedures and guidelines using training aids available at each location. We
also use an interactive system of computer-based training (“CBT”), with a touch-screen computer terminal at our
JACK IN THE BOX restaurants. The CBT 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 2006, most JACK IN THE BOX
restaurants received approximately four quality, food safety and cleanliness inspections. In addition, the Company’ s
“Voice of the Customer” program provides restaurant managers with guest surveys each week regarding their JACK
IN THE BOX experience. In 2006, we received more than 1,000,000 guest survey responses.
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. Our standards require all restaurant
managers and grill employees to receive special grill certification training and be certified annually.
Purchasing and Distribution
We provide purchasing, warehouse and distribution services for all JACK IN THE BOX company-operated and
nearly 68% 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 1, 2006, we also provided these services to approximately 43% 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 and
franchise-operated restaurants.