Jack In The Box 2010 Annual Report Download - page 8

Table of Contents
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, documented
restaurant practices and detailed attention to product quality at every stage of the food preparation cycle. The U.S. Department of
Agriculture (“USDA”), Food and Drug Administration (“FDA”) and the Center for Science in the Public Interest have recognized our
HACCP program as a leader in the industry.
In addition, our HACCP system uses ServSafe®, a nationally recognized food-safety training and certification program. Jack in the
Box Inc. is a member of the International Food Safety Council, a coalition of industry members of the National Restaurant Association
that have demonstrated a corporate commitment to food safety. Our standards require that all restaurant managers and grill employees
receive special grill certification training and be certified annually.
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We provide purchasing, warehouse and distribution services for all Jack in the Box company-operated restaurants, nearly 90% of our
Jack in the Box franchise-operated restaurants, and approximately 45% of Qdoba’s company and franchise-operated restaurants. The
remaining Jack in the Box franchisees and 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. In 2009, we outsourced the transportation services portion of our supply chain as a means of reducing risks associated with
the transportation business without increasing our costs.
Regardless of whether we provide distribution services to a restaurant or not, we require that all suppliers meet our strict HACCP
program standards, previously discussed. The primary commodities purchased by our restaurants are beef, poultry, pork, cheese and
produce. We monitor the primary commodities we purchase in order to minimize the impact of fluctuations in price and availability, and
we make advance purchases of commodities when considered to be advantageous. However, certain commodities remain subject to price
fluctuations. All essential food and beverage products are available, or can be made available, upon short notice from alternative qualified
suppliers.
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 We have centralized financial and accounting systems for company-operated restaurants. We believe these systems are
important in analyzing and improving profit margins and accumulating marketing information. Our restaurant satellite-enabled software
allows for daily, weekly and monthly polling of sales, inventory and labor data from the restaurants. We use a standardized Windows-
based touch screen point-of-sale (“POS”) platform in our Jack in the Box company and franchise restaurants, which allows us to accept
credit cards and JACK CA$H®, our re-loadable gift cards. We have contactless payment technology throughout our system, which
allows us to accept new credit card types and to prepare for future innovation. We have also developed business intelligence systems to
provide visibility to the key metrics in the operation of company and franchise restaurants. Our interactive CBT system, previously
discussed, is the standard training tool for new hire training and periodic workstation re-certifications. We have a labor scheduling
system to assist in managing labor hours based on forecasted sales volumes. We also have a highly reliable inventory management
system, which enables timely deliveries to our restaurants with excellent control over food safety. To support order accuracy and speed of
service, our drive-thru restaurants use color order confirmation screens.
 Qdoba restaurants use POS software with touch screens, accept debit and credit cards at all locations and use
back-of-the-restaurant software to control purchasing, inventory, and food and labor costs. These software products have been
customized to meet Qdoba’s operating standards.
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We build brand awareness through our marketing and advertising programs and activities. These activities are supported primarily by
contractual contributions from all company and franchise restaurants based on a percentage of sales. Activities to advertise restaurant
products, promote brand awareness and attract customers include, but are not limited to, regional and local campaigns on television,
national cable television, radio and print media, as well as Internet advertising on specific sites and broad-reach Web portals.
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