Jack in the Box Makes Progress on Drive-Thru Transformation
Jack in the Box is making strides in rolling out its new drive-thru prototype.
During a February earnings call with analysts, the QSR said drive-thru updates were a top strategic priority.
Fast-forward to an August earnings call with analysts, CFO Lance Tucker said, ”We're making good progress” when asked about the drive-thru updates. The QSR has remodeled more than half of the 150 of the oldest units, including some that need structural work.
It’s still early days in the drive-thru remodels, but “We have seen good lifts on those of mid-to-high single digits sales lift,” Tucker explained. The QSR is still testing equipment, “so more to come on that once we've got some of the digital menu boards in place and are really doing some up-selling,” he added.
Digital menu boards
CEO Lenny Comma said the QSR is testing digital menu boards along with other components.
Comma listed a few of the digital menu benefits. With a complex menu available 24/7, switching to digital from static menu boards would enable a less cluttered presentation than static menu boards. And digital menu boards would enable Jack in the Box to advertise directly to the consumer.
“And then also, as you start to have a relationship with those consumers into the future, you can evolve that platform to a place where you are communicating with consumers on a one-to-one basis based on their history of purchases with the brands,” he said.
However, time will tell if the digital menu boards will live up to their potential. “We're not a 100% sure that the investment in the digital menu boards is going to pay off. But we do believe that it's worth testing along with the other components, and if we see a return on the investment then we'll go for it,” said Comma.
“...It's really just a matter how we can capitalize on this from our individual brand. We're going to attempt to do so, but we're not going to work with it, if it doesn’t pay off.”
The San Diego-based restaurant company operates and franchises more than 2,220 Jack in the Box restaurants.