Jack in the Box is a Food On Demand Outstanding Operator.
It wasn’t that long ago when Jack in the Box, known for its jumbo smash burger and 24-hour breakfast menu, did only 1 to 2 percent of digital sales. That’s not jack. But it’s no jackpot. Today things are different.
Ali Nemat, vice president of operations services
“Fifteen percent of our business comes through those channels,” said Ali Nemat, vice president of operations services, in an interview, noting that revenues accelerated after Covid. “Our ambition is to get to 20 percent in the next year.”
Its delivery revenues are split equally between third-party and first-party orders. Nemat would like to tilt that number.
“We’re hoping for more on first party,” he said. “Our new loyalty program will be a big driver.”
A new cloud-based POS
The brand is upgrading its POS system to a new cloud-based system, in partnership with Qu, which is allowing it to maximize loyalty and capture more first-party orders. All its locations will be using the new system by the end of the year.
“Right now we have loyalty purely on our app; we want to have that same program in our stores as well,” he said. “The new POS platform provides an integrated ecosystem.”
Extending loyalty isn’t the only benefit.
“One thing that the new POS system helps us do is analyze the data we get, which helps us fine-tune things,” he said. “We have cut our customer complaints down three to one.”
The new system also allows the brand to offer ordering flexibility to consumers. In-store customers can use a kiosk and never have a human interaction; others can still talk to a person if they want.
“We have blended the two options, understanding that we have different customers with different needs,” he said.
The new tech has also allowed the brand to install a dedicated digital monitor, which staffers use for an easy line of sight into what needs to be packed and executed.
Making pick-up easier for drivers
To achieve greater delivery efficiency, the brand audited its in-store traffic flow and came up with a spacing blueprint.
“We’re standardizing our process for drivers that’s going to make it seamless for them to come in, get the food, and go, with only one point of failure,” he said.
New comprehensive training
The three fundamentals for employees of a brand like Jack in the Box are taking orders, making food, and serving food. It’s the run, hit and throw of the QSR world. The brand has developed best practices for its staffers.
“We have built an end-to-end training process and extended it to the digital world,” he said. “Our mantra is we want customers to have a consistent experience, anywhere, anyhow, anyway, meaning that it doesn’t matter if you’re a digital customer, a drive-thru customer, or a kiosk customer. We want to make sure you have a consistently great experience.”
More pick-up windows for the late-night crowd
The brand has long prided itself on being open 24 hours a day, which is a key differentiator in the category. While it closes its dining rooms late at night, the drive-thrus stay open. And now it’s doing more with pick-up windows.
“We’re remodeling restaurants and adding them,” he said, noting that all new builds will also have them. “This provides another avenue for consumers to come and grab their food without sitting in the drive-thru.”
New year, new goals
The company shared plans during its most recent Investor Day to grow to 5,750 restaurants in the U.S. Since 2021 it has signed 90 development agreements for a total of 389 restaurant commitments.
Between fiscal years 2020 and 2023, the brand averaged 5 percent same-store sales growth, increased its AUV from $1.7 million to $2 million, and lifted its digital mix from 4 percent to 12 percent.
Last year the brand increased loyalty engagement by 40 percent. And it reduced its speed of service from five minutes and 17 seconds in the first quarter of 2022 to four minutes and 57 seconds in the first quarter of 2024.
All this helped the brand endure a challenging year in 2024 for the industry as a whole. “We spent 2024 addressing things like wage pressure, especially in California, and inflation,” he said.
But now the brand, which is the fifth-largest quick-service burger chain in the U.S., is in Usain Bolt sprinting mode.
“We’re opening locations in Illinois, Florida, Kentucky, Utah, as well as Mexico,” he said. “Things are happening in our development pipeline.”
