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From the pages of Restaurant Franchising
Jack in the Box
One of the nation’s largest hamburger chains is heating things up with a franchising push and brand-reinvention strategy.
Jack in the Box franchise

After nearly 60 years in the quick-serve restaurant business, Jack in the Box® restaurants is evolving yet again. The company has comprehensive brand-reinvention and restaurant expansion strategies under way, and there are plenty of exciting franchise opportunities available.

Unlike most of its major quick-service competitors, Jack in the Box is primarily a company-operated chain. But thanks to the company’s accelerating franchising strategy, which includes refranchising existing restaurants and developing new franchise locations, Jack in the Box has increased franchise ownership from less than 20 percent of its system a few years ago to 39 percent today. Going forward, the company plans to increase franchise ownership of its system to 70–80 percent by the end of fiscal 2013.

“We’re not only one of the largest and most recognized quick-service restaurant brands, but we also offer franchisees more growth opportunities through the acquisition and development of new markets,” says Charlie Watson, senior vice president and chief development officer for Jack in the Box Inc.

The chain, which currently has more than 2,100 locations in 18 states, is expanding into new contiguous markets in the Midwest, Southwest, and Western U.S. Jack in the Box offers franchisees the opportunity to purchase partial or whole markets, including markets where the company has established restaurants with the goal of refranchising them in the future.

“Growing the Jack in the Box brand is a key initiative of our strategic plan,” says Watson. “At a time when many companies are consolidating operations and scaling back growth, Jack in the Box is adding new restaurants and expanding into new markets.”

The company’s franchising strategy supplements a comprehensive brand reinvention that has taken place at Jack in the Box restaurants in recent years. A research-and-development initiative, which included building a state-of-the-art Innovation Center, is adding unique new products such as Real Fruit Smoothies and Teriyaki Bowls to the menu. A re-imaging program, still in progress, is bringing a fresh, new look to the restaurants. Updated exteriors include new paint schemes, lighting, and landscaping, while new interiors feature ceramic tile flooring, a mix of seating styles, and decorative lighting. The chain also has a new prototype design that incorporates elements more typical of fast-casual restaurants, such as fireplaces and open kitchens.

“The goal of our brand-reinvention strategy is to drive sales growth and differentiate Jack in the Box from its competitors by offering our guests a superior dining experience,” says Watson.

Jack in the Box also wants its franchisees to have a great experience. The company works closely with franchisees to ensure that they have the resources they need to be successful and support them in the areas of marketing, technology, training, restaurant design, operations, purchasing, and distribution.

For example, through its wholly owned and operated distribution system, Jack in the Box provides cost-effective, safe, and reliable product warehousing and distribution for company-owned and many franchise locations.

“Jack in the Box is an established brand that has a proven track record,” says Watson. “Few quick-service restaurant companies can offer franchisees the developed infrastructure that we can.”

In addition to meeting the company’s financial requirements, potential Jack in the Box franchisees should be willing to commit to a minimum five-unit development agreement and have a strong background in multi-unit, quick-service restaurant operations and experience in developing or acquiring new markets.

“We’re looking for someone with restaurant operations and development experience who has a passion for the quick-serve restaurant business,” Watson says.

For more information about franchising opportunities with Jack in the Box, visit www.jackinthebox.com.