Jack In The Box 2007 Annual Report Download - page 17

of our restaurants, as well as increase the long-term value of our business through the successful execution of the
following:
• Identify, develop and implement significant process improvements to reduce our resource needs, improve
timeframes and drive sales and profits.
• Identify, develop and implement cost reductions to improve operating margins without negatively impacting
the guest experience.
• Improve unit economics of all our brands through sales growth along with operating-cost and investment
management.
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, real ice cream shakes and side items. Hamburger products include our
signature Jumbo Jack», Sourdough Jack»and Ultimate Cheeseburger and Jack’s newest product — the 100%
Sirloin Burger. JACK IN THE BOX restaurants also offer premium entrée salads and specialty 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 also 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 QSR
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 approximately 70% of
sales at company-operated restaurants.
The following table summarizes the changes in the number of company-operated and franchised JACKINTHEBox
restaurants since the beginning of fiscal 2003:
2007 2006 2005 2004 2003
Fiscal Year
Company-operated restaurants:
Opened ................................... 42 29 38 56 90
Sold to franchisees .......................... (76) (82) (58) (49) (36)
Closed.................................... (5) (6) (5) (2) (8)
Acquired from franchisees ..................... — — 1 — —
End of period total .......................... 1,436 1,475 1,534 1,558 1,553
Franchised restaurants:
Opened ................................... 16 7 11 5 3
Acquired from Company ...................... 76 82 58 49 36
Sold to Company ............................ — — (1) — —
Closed.................................... — — (1) — —
End of period total .......................... 696 604 515 448 394
System end of period total ....................... 2,132 2,079 2,049 2,006 1,947
Qdoba. Qdoba restaurants use fresh, high quality ingredients and traditional Mexican flavors fused with
popular ingredients from other regional cuisines to give a unique “Nouveau-Mexican” taste to its broad menu. A
few examples of Qdoba’s unique flavors are its signature Poblano Pesto and Ancho Chile BBQ sauces. While the
great flavors start with the core philosophy of “the fresher the ingredients, the fresher the flavorsTM”, our ability to
deliver these flavors is made possible by the commitment to professional preparation methods. Guacamole is
4