Jack In The Box 2013 Annual Report Download - page 8

at each 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 American National Standards Institute certified food safety training programs to train our company and franchise
restaurant 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 fiscal 2012, all of our company-operated Qdoba restaurants and
approximately 90% of our Qdoba franchises began utilizing the distribution services of a third-party distributor under a long-term contract, ending February
2017.
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 the end of the first quarter of fiscal 2013.
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 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 financial contributions to a marketing fund 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 for both company and franchise owned
and operated restaurants, and is determined by the local management. 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.
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