Dive Brief:
- Jack in the Box is reentering the Chicago market, with plans to open eight corporate-operated units in the city and its suburbs beginning in 2025, the chain announced Tuesday.
- The burger brand has identified as many as 125 potential locations for potential corporate and franchised units, according to the press release.
- The Chicago development plan marks Jack in the Box’s return to the city after what CEO Darin Harris told the Chicago Tribune was an absence of more than 40 years.
Dive Insight:
Despite its recent focus on franchised growth, Jack in the Box’s re-entry to Chicago will be led by company stores. Harris told the Chicago Tribune he was confident the strategy would build brand awareness.
The brand is looking at a variety of development options in Chicago including “traditional freestanding restaurants, end-caps with drive-thru, conversion of existing buildings, and dark kitchens,” according to the press release. These stores, which will be open 24 hours per day, will offer dine-in, drive-thru and mobile ordering.
Jack in the Box did not respond to a request to clarify what it meant by dark kitchens.
The chain’s re-launched franchising program and sales strength in recent years created significant momentum, leading to multi-unit deals in markets like Utah, Kentucky, Arkansas, Montana, Wyoming, Michigan, Florida and Georgia, the press release said. The company also has plans to expand into Mexico.
Jack in the Box has been particularly aggressive in Florida and had 31 total restaurant restaurant commitments as of May, Harris said during the company’s fiscal Q2 2024 earnings call.
According to Jack in the Box’s 2024 Franchise Disclosure Document, the company has successfully resumed net unit growth, adding a net five stores in 2023. The chain grew average gross sales at franchised stores from about $1.8 million in 2022 to about nearly $2 million in 2023, according to the FDD.
Earlier this year, the chain rolled out its Craved, a remodeling and redesign program, to its franchisees. It also committed $50 million toward the program. As of May, franchises operating over 500 restaurants submitted requests for remodels. Jack in the Box also had 71 units in design and permitting stages during that month. Harris said that they expect the remodels will help increase same-store sales.
Concurrent with its expansion, Jack in the Box is emphasizing value, like other restaurant brands. In late May, the chain launched a snack-focused Munchies under $4 menu designed to draw customers focused on pricing.
