Jack In The Box 2014 Annual Report Download - page 8

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Our “farm-to-fork” food safety and quality assurance programs are 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 Hazard Analysis & Critical
Control Points (“HACCP”) system and a food safety management program for managing food safety in our restaurants. HACCP combines employee training,
testing, documented restaurant practices and detailed attention to product safety and quality 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 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 Jack in the Box 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. We are currently engaged in a comprehensive review of our restaurant level technologies at Jack in the Box and Qdoba to identify
opportunities to integrate systems across both of our brands.
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