Jack in the Box Inc. Q3 Earnings Conference Call

Jack in the Box® Restaurants and Quick Stuff®
Convenience Stores Offer One-Stop Convenience
for Burgers, Groceries, Fuel... Even a Car Wash


SAN DIEGO - With more than 50 years of experience in the fast-food industry, Jack in the Box Inc. has entered another on-the-go business with its Quick Stuff® convenience stores.

Quick Stuff is the company's proprietary brand of convenience store. Built adjacent to a full-size Jack in the Box® restaurant and a branded fuel station, each part of the co-branded concept is operated by the company. Some Quick Stuff locations also offer car washes.
Quick Stuff convenience stores are about 2,000 square feet and are open 24 hours. They feature ATMs and fuel islands with four-to-six dispensers and pay-at-the-pump credit-card readers.

Click photo to enlarge
Jack in the Box is operating more than 50 of these co-branded sites in California, Texas, Arizona, Louisiana, Idaho, Washington and Illinois, and is contracting with petroleum marketers, including Chevron, Shell, Arco, Exxon, Texaco and Citgo to supply fuel for the locations.

"This business venture allows us to grow in new ways and increase revenues and profits by sharing the development costs of three separate convenience businesses at premium locations in high-traffic areas," said Lenny Comma, vice president of operations for Jack in the Box Inc.

"With our own history in a convenience business, we are confident that our co-branded concept will enable us to compete more aggressively and extend the Jack in the Box brand," he added.

Though co-branding fast-food and fuel is not new, unlike other chains that offer mini-versions of their restaurants at fuel stations, the Jack in the Box concept offers a standard-size restaurant with seating for 40 to 68 guests, as well as the chain's full menu and drive-thru service. The restaurant is connected to the Quick Stuff store by a common area that includes restroom facilities.

In addition to the Jack in the Box / Quick Stuff sites fully owned and operated by the company, Jack in the Box is also a co-tenant at more than 40 other fuel-station locations in California, Hawaii, Idaho, Missouri, Nevada, North Carolina, Tennessee, Texas and Washington. Jack in the Box oversees restaurant operations only at these sites.

Comma said the pairing with major fuel providers helps drive traffic to Jack in the Box restaurants, regardless of whether the co-branded site includes a Quick Stuff or another brand of convenience store. "Our restaurants benefit from the side-by-side association with companies like Chevron and Shell, which have high brand awareness and are known traffic generators," he said.

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