5 years ago
Jack in the Box is not the only restaurant chain dealing with franchisee unrest. But it does appear that its relationship with operators will not be salvaged at this point. A sale of the company is what both the company and franchisees really want.
Corporate initiatives and decision-making grab headlines, but a chain is only as strong as its operators. And they are angry.
Is every fast-food chain with franchisee problems open to selling? It sure seems like it. Unfortunately for Jack in the Box, the company isn't looking too attractive to potential buyers at the moment.
If there's one theme in this installment it's that the healthy eating push that many chains have promoted doesn't mean that fast food is going to ditch the calorie bombs for which they've become known for.
There is no certainty a deal will be reached, according to reports. But it's safe to assume what Jack in the Box's franchisees want.
Brands are being pulled in all directions but there are consistent messages coming out of earnings season, both in terms of shortcomings and triumphs.
Jack in the Box's leadership is likely happy that these investors are not clamoring for the CEO change that many as its franchisees are.
6 years ago
We're really not sure what Jack in the Box sells these days, and that should worry franchisees.
This story captures all the influences that have an impact on restaurants right now in the U.S., except the rapid changes happening in the delivery space.
If you're going to pay people a fair wage, you can't sell food for less than it takes to source, prepare, and serve. Rising prices are good in the long run.
Value menus offer a cheap and convenient buy for existing customers, but the $1 menu items aren't attracting tons of new customers to the chains.
Fast food restaurants aren't necessarily built on a pyramid of french fries, but the quintessential drive-thru item can cause a headache for chain restaurants that rely on potatoes to a substantial portion of business.
