In 1951, Robert Peterson launched a chain of drive-through

restaurants located primarily in California, Texas, and Arizona.

From the beginning, Jack in the Box restaurants featured

a clown named Jack, who greeted motorists ordering

through a two-way speaker device encased inside Jacks head.

Business operations have occurred under various names and

public, private, and subsidiary affiliations, including Foodmaker,

Ralston Purina, and currently. Jack in the Box, Inc.

Jack in the Box is known as a fast-food innovator, introducing

the first breakfast sandwich and prepackaged,

portable salad. Whereas other fast-food restaurants are

often hesitant to make major product-line changes, Jack

in the Box continuously modifies its offerings to provide

customers with an ever-changing array of food items.

Jack in The Box experienced a well-publicized Escherichia

coli food-poisoning incident in 1993. The company

responded with the industrys first comprehensive Hazard

Analysis & Critical Control Points (HACCP) system for

managing food safety and quality the following year. Jack

in the Box continues to support tougher legislation to mandate

food-safety systems throughout the fast-food industry.

The company actively partners with national consumer

organizations to educate the public about techniques families

can use to protect themselves against home-based

food poisoning.

The 1993 . coll incident was revived in 2015 when

Chipotle temporarily closed 40 stores in 2015 after a serious

of illnesses linked to E. coli bacteria. Ironically, Jack

in the Box might have benefited from this crisis because

its Qdoba Mexican Grill fast-casual restaurants competed

directly with Chipotle. Jack in the Box sold Qdoba to

Apollo Management Group in 2018.

In the last two decades, Jack in the Box has emphasized

pricier, more upscale items on its menu. Jack in the Box

currently operates and franchises more than 2,200 restaurants

in the western and southern United States, most of

which are owned by the firm. The company targets the

adult market with a broad and changing selection of distinctive,

innovative products, including hamburgers, specialty

sandwiches, tacos and other ethnic products, finger

foods, breakfast foods, unique side items, and dessert

items.

Case Challenges

1. Jack in the Box is well known in California, Texas, and

Arizona, but the chain has not penetrated markets in

much of the remaining sections of the country. Should the

company continue to focus on a limited geographical area?

2. Jack in the Box experienced a crisis in 1993 when four

customers died from E. co/i-tainted hamburgers. What

could have been done to avoid this type of crisis? Was it

managed effectively? What can other restaurants learn

from this experience?

3. Jack in the Box owns a higher percentage of its stores

than is common in the industry. Should the chain continue

this approach, or does franchising offer greater growth

prospects?

4. In an industry where all competitors appear to market

similar products with dollar menus, how is Jack in the Box

differentiated from rivals? What else can be done?

In 1951, Robert Peterson launched a chain of drive-through restaurants located primarily in California, Texas, and Arizona. From the beginning, Jack in the Box restaurants featured a clown named Jack, who greeted motorists ordering through a two-way speaker device encased inside Jack's head. Business operations have occurred under various names and public, private, and subsidiary affiliations, including Foodmaker, Ralston Purina, and currently, Jack in the Box, Inc. Jack in the Box is known as a fast-food innovator, introducing the first breakfast sandwich and prepackaged. portable salad. Whereas other fast-food restaurants are often hesitant to make major product-line changes, Jack in the Box continuously modifies its offerings to provide customers with an ever-changing array of food items. Jack in the Box experienced a well-publicized Escherichia coli food-poisoning incident in 1993. The company responded with the industry's first comprehensive Hazard Analysis \& Critical Control Points (HACCP) system for managing food safety and quality the following year. Jack in the Box continues to support tougher legislation to mandate food-safety systems throughout the fast-food industry. The company actively partners with national consumer organizations to educate the public about techniques families can use to protect themselves against home-based food poisoning. The 1993 E. coli incident was revived in 2015 when Chipotle temporarily closed 40 stores in 2015 after a serious of illnesses linked to E, coli bacteria. Ironically, Jack in the Box might have benefitted from this crisis because its Qdoba Mexican Grill fast-casual restaurants competed directly with Chipotle. Jack in the Box sold Qdoba to Apollo Management Group in 2018. In the last two decades, Jack in the Box has emphasized pricier, more upscale items on its menu. Jack in the Box currently operates and franchises more than 2,200 restaurants in the western and southern United States, most of which are owned by the firm. The company targets the adult market with a broad and changing selection of distinctive, innovative products, including hamburgers, specialty sandwiches, tacos and other ethnic products, finger foods, breakfast foods, unique side items, and dessert items. Case Challenges 1. Jack in the Box is well known in California, Texas, and Arizona, but the chain has not penetrated markets in much of the remaining sections of the country. Should the company continue to focus on a limited geographical area? 2. Jack in the Box experienced a erisis in 1993 when four customers died from E. colli-tainted hamburgers. What could have been done to avoid this type of crisis? Was it managed effectively? What can other restaurants learn from this experience? 3. Jack in the Box owns a higher percentage of its stores than is common in the industry. Should the chain continue this approach, or does franchising offer greater growth prospects? 4. In an industry where all competitors appear to market similar products with dollar menus, bow is Jack in the Box differentiated from rivals? What else can be done