Jack In The Box 2012 Annual Report Download - page 6

and supervisory personnel train other restaurant employees in accordance with detailed procedures and guidelines using training aids available at each location.
Both company and franchise-operated restaurants also use an interactive system of computer-based training (“CBT”), with a touch-screen computer terminal.
The CBT technology incorporates audio, video and text, all of which are updated via satellite. CBT is also designed to reduce the administrative demands on
restaurant managers.
For Jack in the Box company operations, division vice presidents supervise directors of operations, who supervise district managers, who in turn
supervise restaurant managers. Under our performance system, these management levels are all eligible for periodic bonuses based on achievement of goals
related to restaurant sales, profit and/or certain other operational performance standards.
Qdoba Mexican Grill. At Qdoba company restaurants, we focus on attracting, selecting, engaging and retaining people who share our values to create
long-lasting positive impacts on operating results. Our Qdoba Career Map is the core development tool used to provide employees with detailed education by
position, from entry level to area manager. High performing general managers and hourly team members are certified to train and develop employees through a
series of on-the-job and classroom trainings that focus on knowledge, skills and behaviors. The Team Member Progression program within the Career Map
tool recognizes and rewards three levels of achievement for our cooks and line servers who showcase excellence in their positions. Team members must have,
or acquire, specific technical and behavioral skill sets to reach an achievement level.
For Qdoba restaurant operations, division vice presidents supervise regional operations managers, who supervise district managers, who in turn supervise
restaurant managers. All levels are eligible for periodic performance bonuses based on goals related to restaurant sales, profit optimization and other operations
performance standards such as guest satisfaction.
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Company-operated and franchise-operated restaurants devote significant resources toward ensuring that all of our restaurants offer quality food and good
service. To help us maintain a high level of customer satisfaction, our Voice of Guest program provides restaurant managers, district managers, and franchise
operators with ongoing feedback from guests who complete a short guest satisfaction survey via an invitation provided on the register receipt. In these surveys,
guests rate their satisfaction with key elements of their restaurant experience, including friendliness, food quality, cleanliness, speed of service and order
accuracy. In 2012, the Jack in the Box and Qdoba systems received more than 1.0 million and 0.2 million guest survey responses, respectively. We also have
a “mystery guest” program at Jack in the Box that provides restaurant managers, district managers, and franchise operators feedback on guest service as
evaluated by “secret shoppers” who visit the restaurant. Finally, our Guest Relations department provides feedback that guests report through our toll-free
number and via our website.
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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 the 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 safety and 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, to train our management employees on food safety
practices for our restaurants.
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Historically, we provided purchasing and distribution services for our company-operated restaurants and most of our franchise-operated restaurants. Our
remaining franchisees purchased product from approved suppliers and distributors. In March 2012, we and approximately 90% of our Qdoba franchisees
entered into a long-term contract with a third-party distributor to provide distribution services to our Qdoba restaurants through February 2017. We completed
the transition of all Qdoba distribution services in the second quarter of fiscal 2012. In July 2012, we and approximately 90% of our Jack in the Box
franchisees entered into a long-term contract with another third-party distributor to provide distribution services to our Jack in the Box restaurants through
August 2022. In the fourth quarter of fiscal 2012, we had completed the transition of services from one distribution center and our remaining centers were
transitioned by November 5, 2012.
Regardless of whether we provide purchasing services to a restaurant or not, we require our suppliers to 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 may enter into purchasing contracts and pricing arrangements when considered to be
advantageous. However, certain commodities remain subject
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