Many of Jack in the Box’s value-oriented deals are either new items or LTOs. Comma said this keeps the brand aligned with its aforementioned, iron-clad directive: minimize the risk of diluting core products. The difference now, though? Strategically build in upsell opportunities via promotions that push check averages higher.
Tucker said designing compelling value bundles enables upselling and allows Jack in the Box to capitalize on incremental transactions. In Q3, check lifted 2.8 percent, comprised of about 2.3 percent of pricing.
“That price point is very attractive at the below $5 mark, but the ability to either add proteins or additional add-on exciting snacks has worked very well for our operation,” Comma added.
Jack in the Box will continue pulsing LTO bundle deals at competitive prices, he said. All created with the goal of encourage additional purchases.
But speaking to the earlier everyday point, Common said, the chain will look to restore the equity it lost when it raised taco prices. He didn’t provide concrete details, only saying, “there’ll be some permanent additions coming in the future as well.”
“I do think that it's important that we don't just believe that we can live on LTOs and marketing promotion,” he said. “… You'll see us do that and I think that that creates more of a permanent sales layer or restoration of a lost sales layer that allows us to bring back or bring up the base of sales altogether. And then everything else will ladder on top of that.”
These LTO bundled-value boxes, however, typically feature a new item or line extension coupled with a complementary add-on or upsell. Comma said they’re easier to execute for employees and push with marketing. “We're also making sure that that advertising is being spread across multiple day parts and our offerings that we can balance out things like breakfast versus dinner or lunch offering, and I think that that's a more balanced approach as well,” he said.
The goal for Jack in the Box has always been to guard what separates its brand from fast-food competitors, and not lose traction trying to drive value or compete quarter by quarter. But there needs to be some balance. It can preserve equity and still present reasonable price points that appeal to value seekers. Essentially, give light users something to latch onto instead of expecting every visit to stem from frequent guests.
“But if they are one of our tried-and-true loyal customers looking for those credible items, they're going to typically bundle more than what we presented to them, within that bundled deal. And that's exactly what we're seeing,” Comma said.
An example: The Donut Holes currently being sold for $1. That’s a convenient add-on for customers and an easy upsell for employees. “For us, we’ve got to find that sweet spot with combos and credible items that attract a guest that maybe isn’t just looking for value, while at the same time, present something at value price for those who are.”I
If Jack in the Box caters to the below-$5 price point it will bring value seekers back. It’s not a matter of those consumers trading up, as some quick-serves court, since they’re not trading down from the higher-priced offerings to the value-oriented ones. They’re simply not the same customer, and it comes down to pleasing both. Without those deals, the value-driven guest will trade to one of Jack in the Box's competitors. So, the answer: Not just bundled deals, but bundles below and around the $5 figure.