Health experts declared that if Jack in the Box Inc. restaurants had obeyed Washington State's set of laws, the outbreak of an epidemic would have been prevented. Jack in the Box, on January 22, 1993, guaranteed "to do everything that is morally right for those individuals who had experienced illness after eating at Jack in the Box restaurants as well as their families." Due to the negative publicity the company was facing, Robert Nugent substituted his public relations firm. Moreover, they instantaneously stopped their hamburger production, "recalled meat from distributors, increased cooking times and temperatures, and pledged to pay all medical costs related to the disaster." Jack in the Box used the services of Dr. David Theno, in order to come up with a brand new food-handling method.
In 1994, they instituted the fast-food industry's first comprehensive food-safety program, the Hazard Analysis & Critical Control Points system. Today, they are considered the leader in food safety in the fast-food industry and they are the country's fifth-largest burger chain
Foodmaker has settled more than 90 lawsuits related to the January 1993 outbreak" the most expensive one being with Angela Noble, who went through a kidney transplant in order to save her life, settlement which had cost the company $7.5 million.
Another process which brought change in the company's way of doing business was the one of Alfonso Cruz. Jack in the Box decided to pay $25,000 and modify its hiring policy in order to end a court case claiming that the company discriminated against a deaf candidate.
The U.S. Equal Employment Opportunity alleged that a Jack in the Box restaurant in Texas violated the Americans with Disabilities Act by rejecting Alfonso Cruz for a position as cook because he was deaf and unable to speak. The lawsuit accused the company of rejecting Cruz without making an individual assessment of his ability to perform the job."
Moreover, the National Association of Jack in the Box franchisees filed suit against Jack in the Box parent Foodmaker Inc., "alleging that the company possibly withheld promotional money, paid by suppliers that should have gone to franchisees"
In what marketing is concerned, the most important problems were the ones concerning their advertising campaigns.
One very controversial commercial is debating the idea of corporate responsibility for the social environment. Their commercial presents a young man driving while being under the influence of drugs and reaching one of the "Jack in the Box" restaurants. The commercial out broke in a wave of complains from people everywhere. Victoria Carlborg from Health Advocates Rejecting Marijuana states that: "We would like to partner with Jack in the Box to develop, adopt, and make public a more socially responsible policy guiding future nationwide advertising decisions that will not target our youth with messages that trivialize drug use, nor glamorize drug use as humorous and entertaining."
Other harmful commercials were the ones which brought Jack in the Box a lawsuit issued by CKE. "CKE sued Jack in the Box in May 2007 over two TV ads, including one in which executives laugh hysterically at the word 'Angus' and another where the chain's mascot, Jack -- a man with the round clown head and pointy nose -- is asked to point to a diagram of a cow and show where Angus meat comes from." The reason for this commercial, as Jack in the Box management team said is the fact that "the humorous ads were meant to differentiate own new sirloin burger from the competition."
We present bellow a SWOT analysis for the Jack in the Box Inc. Company.
STRENGTHS of the COMPANY
WEAKNESSES of the COMPANY
It has been on the market since 1951.
It has became a brand
Jack is the symbol and the mascot of the company and it is wide known.
It has a very good (general) reputation
It is present in about 20 states in the U.S.A. with more than 2000 restaurants
It offers franchising.
It has always had quality products.
People appreciate the variety of the menu and the fact that they can make their own menus.
It always managed...
Not just a restaurant. Usually it also includes a store and/or a gas station
Good social responsibility (the Jack in the Box Foundation)
It is not present on the International Market.
Resistant to change. People are used to the way the restaurants look like, to the food they serve so if the they want to bring a change in their locations/products, they might have to face a wave of unwillingness or dissatisfaction coming from their customers minor scandal might cause enormous loss for the company
Being as developed as it is, and moreover, because of franchising, it is hard to maintain control over each restaurant and make sure that all conditions and requirements are met and all products are completely safe.
THREATS in the ENVIRONMENT
Competitors will stop at nothing in order to reduce the company's income and ruin its reputation.
Any other scandals (if people's health is endangered) will decrease people's confidence, commitment in the company and the profits as such.
People's preoccupation for healthy food might endanger the future of the fast food industry
OPPORTUNITIES in the ENVIRONMENT
Expansion on the international market
Association with other famous brands
Involvement at a higher rate in the society (more corporate responsibility)
Research and develop the "healthy" aspect of their products (Bio-products)
After this rather detailed analysis of Jack in the Box, we have reached the conclusion that this important company has its pluses and minuses as it has its strengths and its weaknesses. It produces quality food and satisfies customers' needs but also deals with lawsuits and discontented people. It involves itself in the community, thus giving the allure of social responsibility but at the same time gets involved in trials due to the fact that their advertising campaign promote the use of drugs.
However, it is a big company, which generates income for the United States and which reinvest their profits in the same country, thing shown by the lack of foreign development of the business.
All in all Jack in the Box is a profitable brand, a name in the industry, a trademark for the United States and an important actor on the market.
ADVFN PLC. (1999-2007) Stock Charts for Jack in the Box (JBX). Retrieved Jan 31, 2008 from ADVFN Web site: http://www.advfn.com/nyse/StockChart.asp?stockchart=JBX
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Crisis Communication Strategies. (2008) Analysis Case Study: Jack in the Box E. coli crisis. Retrieved Jan 31, 2008 from Department of Defense USA Web site: http://www.ou.edu/deptcomm/dodjcc/groups/02C2/Jack%20in%20the%20Box.htm
Liddle, a. (1997). Jack in the Box springs forward on food safety issue. Retrieved Jan 31, 2006 from Nation's Restaurant News. Web site: http://www.ou.edu/deptcomm/dodjcc/groups/02C2/Jack%20in%20the%20Box.htm
Lubbock Avalanche-Journal 1(996). Jack in the Box Settles Food Poisoning Lawsuit for $7.5 Million. Retrieved Jan 31, 2008 from Lubbock Web site: http://www.lubbockonline.com/news/100496/jackin.htm
Nedra Weinreich. (5.07.2007). Spare Change. Retrieved Jan, 31-2008 from Blogger.com. Web site: http://www.social-marketing.com/blog/2007/05/jack-in-box-snubs-corporate.html
Nation's Restaurant News. (Nov 25, 1991). Jack in the Box opens Mexico unit - Brief Article. Retrieved Jan 31, 2008 from FindArticles.com. Web site:. http://findarticles.com/p/articles/mi_m3190/is_n46_v25/ai_11597697
Elaine Porterfield and Adam Berliant.(June 16, 1995). Jack in the Box Ignored Safety Rules. Retrieved Jan 31, 2008 from the News Tribune. Web site: http://www.marlerclark.com/news/jackbox2.htm
Nation's Restaurant News. (Feb 12, 1996). Foodmaker targets Thailand train line for Jack in the Box - Foodmaker International Franchising Inc.; Pam Deli Co - Brief Article. Retrieved Jan 31, 2008 from FindArticles.com. Web site: http://findarticles.com/p/articles/mi_m3190/is_n7_v30/ai_17996013
Nation's Restaurant News. (June 17, 1996). Franchisees file lawsuit against Jack in the Box - National Association of Jack in the Box franchisees sues Foodmaker Inc. - Brief Article. Retrieved Jan 31, 2008 from FindArticles.com. Web site: http://findarticles.com/p/articles/mi_m3190/is_n24_v30/ai_18417966
Deaf Today. (Nov 9, 2004) Jack in the Box Settles Bias Lawsuit. Retrieved Jan 31, 2008 From HR.BLR.com. Web site: http://www.deaftoday.com/v3/2004/11/jack_in_the_box.html
Associated Press. (July 2, 2007) Judge denies injunction for Jack in the Box ads. Retrieved Jan, 31-2008 from MSNBC.com. Web site: http://www.msnbc.msn.com/id/19570692/
Jack in the Box. (2008).Jack in the Box. Retrieved Jan 31, 2008 from Jack in the Box Inc. Web site: http://www.jackinthebox.com/aboutourco/history.php
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Goff, R. (1999). Coming Clean. Retrieved Jan 31, from Department of Defense USA Web site: http://www.ou.edu/deptcomm/dodjcc/groups/02C2/Jack%20in%20the%20Box.htm
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