Jack In The Box Business Analysis

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Management How a company is managed can make or break any organization. Jack in the Box is headed by three different people. Leonard A. Comma, he is the Chairman of the Board as well as the Chief Executive Officer. Mr. Comma has been with the company since 2007, carrying multiple positions along the way. Frances L. Allen; has served as President of Jack in the Box since October 2014. She joined the Company with more than 30 years of branding and marketing experience, including senior leadership roles at such major organizations as Denny’s, Dunkin’ Brands, Sony Ericsson Mobile Communications, PepsiCo and Frito-Lay.1 The President of the Qdoba Restaurant Brand is Timothy P. Casey. Mr. Casey has been President since March 2013. From 2010 until …show more content…

Jack in the box uses television, radio, print media, and internet. Jack in the box currently only adversities regionally and locally, have not yet developed nationally. However Qdoba advertises on a much smaller scale, they only stick to regional or local advertisement as well, but mostly comes from billboards and surveys. Jack in the Box marketing and advertisement are supported primarily by financial contributions to a marketing fund from all company and franchise restaurants based on a percentage of sales.8 Qdoba operates the same way. Over the last three years Jack in the Box has significantly decreased the amount of money going into advertisement. “Our refranchising strategy has resulted in a decrease in the number of Jack in the Box company-operated restaurants and the related overhead expenses to manage and support those restaurants, including advertising costs, which are primarily contributions to our marketing funds determined as a percentage of restaurant sales.”9 In 2013 Jack in the box spent $46,739,000 on advertising, in 2014 they spent $42,345,000, and in 2015 they spent $41,895,000.10 These numbers shows the decline of the amount of dollars spent each year on advertisement. Qdoba has a little different trend, in 2013 they spent $16,123,000, and 2014 spent $18,215,000 and 2015 spent $17,687,000.11 Qdoba has an up and down trend of spending on …show more content…

In fiscal years 2014, 2013 and 2012 the marketing funds were approximately 5% and 1% of sales at all franchise and company-operated Jack in the Box and Qdoba restaurants, respectively.”15 Over the past three years advertisement spending is on the decline. Jack in the Box is the reason for this decline because they already have strong brand awareness. Qdoba on the other hand has work to do to increase their brand awareness, and need to continue to increase dollars spent on advertisement. Price The price on Jack in the Box products is relatively low, based on the ability to substitute product. Jack in the Box does not have to worry about their products having a scarce in supply. Qdoba has higher price due to the quality of their meat, and the need for seasonal products, for example avocadoes. For Jack in the Box the average check in fiscal year 2014 was $6.83 for company-operated restaurant.16 As for Qdoba the average check in fiscal year 2014 was $10.93 for company-operated

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