Jack In The Box 2008 Annual Report Download - page 13

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ability to deliver these flavors is made possible by the commitment to professional preparation methods.
Throughout each day guacamole is prepared onsite using fresh Hass avocados, black and pinto beans are slow-
simmered, shredded beef and pork are slow-roasted and adobo-marinated chicken and steak are flame-grilled.
Customer orders are prepared in full view, which gives our guests the control they desire to build a meal that is
specifically suited to their individual taste preferences and nutritional needs. We also offer a variety of catering
options that can be tailored to feed groups of five to several hundred. Our Hot Taco, Nacho and Naked Burrito Bars
come with everything needed, including plates, napkins, serving utensils, chafing stands and sternos. Each Hot Bar
is set up buffet-style so diners have the ability to prepare their meal to their liking — just like in the restaurant. The
seating capacity at Qdoba restaurants ranges from 60 to 80 persons, including outdoor patio seating at many
locations.
The following table summarizes the changes in the number of company-operated and franchised Qdoba
restaurants since the beginning of fiscal 2004:
2008 2007 2006 2005 2004
Fiscal Year
Company-operated restaurants:
Opened ........................................ 21 10 13 12 13
Sold to franchisees ................................ — — — (4) —
Closed ......................................... — — — (1) —
Acquired from franchisees .......................... — 10 — 3 —
End of period total ................................ 111 90 70 57 47
Franchised restaurants:
Opened ........................................ 56 77 58 65 54
Sold to franchisees ................................ — — — 4 —
Closed ......................................... (18) (10) (3) (3) (1)
Acquired from franchisees .......................... — (10) — (3) —
End of period total ................................ 343 305 248 193 130
System end of period total ............................ 454 395 318 250 177
Restaurant Expansion and Site Selection and Design
Restaurant Expansion. Our long-term growth strategy for our JACK IN THE BOX brand consists of continued
restaurant expansion, including expansion into new contiguous markets through Company investment and franchise
development. Qdoba’s growth is expected to come primarily from increasing the number of franchise-developed
locations. We remain committed to growing our fast-casual subsidiary and believe that Qdoba has significant
expansion potential.
Site Selection and Design. Site selections for all new company-operated restaurants are made after an
economic analysis and a review of demographic data and other information relating to population density, traffic,
competition, restaurant visibility and access, available parking, surrounding businesses and opportunities for
market penetration. Restaurants developed by franchisees are built to our specifications on sites which have been
approved by us.
We have a restaurant prototype with different seating capacities to help reduce costs and improve our flexibility
in locating restaurants. Management believes that the flexibility provided by the alternative configurations enables
the Company to match the restaurant configuration with the specific economic, demographic, geographic and
physical characteristics of a particular site. The majority of our JACK IN THE BOX restaurants are constructed on leased
land. Typical costs to develop a traditional JACK IN THE BOX restaurant, excluding the land value, range from
$1.2 million to $1.8 million. Whenever possible, we use sale and leaseback financing and other means to lower the
initial cash investment in a typical JACK IN THE BOX to the cost of equipment, which averages approximately
$0.4 million. Qdoba restaurant development costs typically range from $0.5 million to $1.0 million depending on
geographic region.
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