Jack In The Box 2011 Annual Report Download - page 7

Table of Contents
including: food quality, accuracy, hassle free service, friendliness, cleanliness and service times. The regional director, area coach and restaurant manager
receive the feedback so they are able to take immediate action to correct any issues and improve the guest experience in the restaurant.
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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 franchise 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, documented restaurant practices and detailed attention to product quality at every stage of the food preparation cycle. The U.S. Department of
Agriculture, Food and Drug Administration 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 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.
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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.
Regardless of whether we provide distribution services to a restaurant or not, we require that all suppliers meet our strict HACCP program standards. 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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Jack in the Box. We have centralized financial and accounting systems for company-operated restaurants. We also have centralized supply-chain systems
allowing us to efficiently replenish inventories for all company and a majority of our franchise restaurants. 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. These
systems play an integral part in accumulating and analyzing market information. Our interactive CBT system, used at company and franchise restaurants, 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 an 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. 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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