Jack In The Box 2011 Annual Report Download - page 10

Table of Contents
geographic area, changes in consumer dining habits and preferences, and new information regarding diet, nutrition and health that affect consumer spending
habits. Key elements of competition in the industry are the type and quality of the food products offered, price, quality, speed of service, personnel,
advertising, name identification, restaurant location and attractiveness of the facilities.
Each Jack in the Box and Qdoba restaurant competes directly and indirectly with a large number of national and regional restaurant chains, as well as with
locally-owned and/or independent restaurants in the quick-service and the fast-casual segments. In selling franchises, we compete with many other restaurant
franchisors, some of whom have substantially greater financial resources.
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Each restaurant is subject to regulation by federal agencies, as well as licensing and regulation by state and local health, sanitation, safety, fire, zoning,
building and other departments. Difficulties or failures in obtaining and maintaining any required permits, licensing or approval could result in closures of
existing restaurants or delays or cancellations in the opening of new restaurants.
We are also subject to federal and state laws regulating the offer and sale of franchises. Such laws impose registration and disclosure requirements on
franchisors in the offer and sale of franchises, and may also apply substantive standards to the relationship between franchisor and franchisee, including
limitations on the ability of franchisors to terminate franchises and alter franchise arrangements.
We are subject to the federal Fair Labor Standards Act and various state laws governing such matters as minimum wages, exempt status classification,
overtime, breaks and other working conditions. A significant number of our food service personnel are paid at rates based on the federal and state minimum
wage and, accordingly, increases in the minimum wage increase our labor costs. Federal and state laws may also require us to provide paid and unpaid leave
to our employees, which could result in significant additional expense to us.
We are subject to certain guidelines under the Americans with Disabilities Act of 1990 and various state codes and regulations, which require restaurants to
provide full and equal access to persons with physical disabilities. To comply with such laws and regulations, the cost of remodeling and developing
restaurants has increased.
We are also subject to various federal, state and local laws regulating the discharge of materials into the environment. The cost of complying with these laws
increases the cost of operating existing restaurants and developing new restaurants. Additional costs relate primarily to the necessity of obtaining more land,
landscaping, storm drainage control and the cost of more expensive equipment necessary to decrease the amount of effluent emitted into the air, ground and
surface waters.
Many of our Qdoba restaurants sell alcoholic beverages, which require licensing. The regulations governing licensing may impose requirements on
licensees including minimum age of employees, hours of operation, advertising and handling of alcoholic beverages. The failure of a Qdoba restaurant to
obtain or retain a license could adversely affect the store’s results of operations.
We have processes in place to monitor compliance with applicable laws and regulations governing our operations.
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From time to time, we make oral and written forward-looking statements that reflect our current expectations regarding future results of operations,
economic performance, financial condition and achievements of the Company. A forward-looking statement is neither a prediction nor a guarantee of future
events. In some
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