Jack In The Box 2012 Annual Report Download - page 7

to price fluctuations. We believe all essential food and beverage products are available, or can be made available, upon short notice from alternative qualified
suppliers.
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At our shared services corporate support center, we have centralized financial accounting systems, human resources and payroll systems, and a
communications and network infrastructure that supports both Jack in the Box and Qdoba corporate functions. Our restaurant software allows for daily
polling of sales, inventory and labor data from the restaurants directly. We use standardized Windows-based touch screen point-of-sale (“POS”) platforms in
our company and traditional site franchise restaurants, which allows us to accept cash, credit cards and our re-loadable gift cards. Our Qdoba POS system is
also enhanced with an integrated guest loyalty program as well as a takeout and delivery interface. The takeout and delivery interface is used to manage online
and catering orders which are distributed to sites via a hosted online ordering website.
We have developed business intelligence systems that provide visibility to the key metrics in the operation of company and franchise restaurants. These
systems play an integral role in accumulating and analyzing market information. We have labor scheduling systems to assist in managing labor hours based
on forecasted sales volumes and inventory management systems, which enable timely and accurate deliveries of food and packaging to our restaurants. To
support order accuracy and speed of service, our drive-thru restaurants use color order confirmation screens. We also have kiosks in many corporate and
franchise Jack in the Box restaurants throughout our major markets that allow customers to place their order themselves using easy-to-follow steps on a
touchscreen. Our Jack in the Box company and franchised restaurants utilize an interactive CBT system as the standard training tool for new hire training
and periodic workstation re-certifications.
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Jack in the Box. At Jack in the Box, 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. Also, in recent years we began utilizing social media as a
channel to better reach our target customers.
Qdoba Mexican Grill. At Qdoba, the goal of our advertising and marketing is to build brand awareness and generate traffic, and we seek to build brand
advocates by delivering a great guest experience in the restaurants. While all restaurants contribute a small amount to a fund primarily used for production and
development of brand assets, we do not have a national media fund. Advertising is done at the regional or local level whether company or franchise owned and
operated, and is determined by the local ownership. Advertising is created at the brand level and the system operators can utilize these assets, or tap into our in-
house graphic design department to create custom advertising that meets their particular communication objectives while adhering to brand standards. The
majority of our marketing is done at the local level by engaging and partnering with local schools, sports teams, community organizations and businesses. We
rely heavily on digital marketing and social media, and have a national presence on several social media networks.
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At September 30, 2012, we had approximately 22,100 employees, of whom 20,800 were restaurant employees, 1,000 were corporate personnel, 200 were
distribution employees and 100 were field management or administrative personnel. Employees are paid on an hourly basis, except certain restaurant
management, operations and corporate management, and administrative personnel. We employ both full- and part-time restaurant employees in order to provide
the flexibility necessary during peak periods of restaurant operations.
We have not experienced any significant work stoppages and believe our labor relations are good. We support our employees, including part-time workers,
by offering competitive wages and benefits. Furthermore, we offer all hourly employees meeting certain minimum service requirements access to health
coverage, including vision and dental benefits. As an additional incentive to our Jack in the Box hourly team members with more than a year of service, we
pay a portion of their health insurance premiums.
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