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Jack in the Box Munchie Moblie - to be printed

Jack in the Box Munchie Moblie - to be printed - I Article...

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I. Article and Executive Summary I.A. Wall Street Journal Article Jack in the Box Joins Food-Truck Craze Burger chain Jack in the Box is joining the food-truck traffic. Jack in the Box Inc. is rolling out a 34-foot-long food truck to serve the eatery's burgers, tacos and fries in Southern California, becoming the latest restaurant to go mobile. Dubbed Jack's Munchie Mobile, the truck is about 12 feet longer than the average food truck, the company said. Jack in the Box said the truck includes kitchen and refrigeration equipment, as well as a 47-inch flat- screen digital menu board and satellite radio to entertain guests. "The mobility of a food truck enables us to serve our guests, even if there's not a restaurant around," said Chief Marketing Officer Terri Funk Graham. Food trucks with kitchens were a rarity until a few years ago. Now they are common in many U.S. cities, often with gourmet themes of such variety as luscious desserts and vegan organic dishes, or national specialties such as schnitzel or Belgian fries. Many foodies follow the trucks' locations via Twitter and other social media, as some traditional restaurants get steamed about the rolling competition. Jack in the Box said its truck—which features the company's mascot Jack, with a spatula in hand —will support restaurant activities as well as community events. The Munchie Mobile is also available to cater public or private events in Southern California, and can be tracked via [email protected] —John Kell <http://online.wsj.com/article/SB10001424052748703818204576206672545425878.html?KEYWORDS=jack+in+the+box> I.B. Executive Summary 1 | P a g e
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Jack in the Box entered the food truck industry with the launch of Jack’s Munchie Mobile on March 18, 2011. This food truck allows the company to reach more customers at more opportune times and places. Using food trucks aligns with the firms’ dominant business corporate level strategy and its business level strategy of broad differentiation. Jack in the Box’s move into the food truck industry makes the most sense when viewed as a defensive expansion because other fast food competitors are moving into the industry as well. A key issue with this move is the food truck industry is slightly unfavorable. However, it is more favorable than the fast food industry due to its lower rivalry and higher margins. In addition, the macro forces of social media and the current trend of food trucks being considered “cool” is driving industry growth and making this industry slightly more attractive. Because Mom and Pop competitors have extremely low market share, national brand entrants have the opportunity capture large amounts of market share. It is recommended that Jack in the Box continue with their entry into the food truck industry. The firm should pursue this move by first launching a couple more trucks in key locations, followed by a larger scale launch and then implementation of a model to franchise the food trucks. Jack in the Box should also integrate its distribution operation with the food trucks using brick and mortar restaurants as hubs to decrease costs. Finally, the company should focus
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