Jack in the Box opens first off-premise-only restaurant

Dive Brief:

Jack in the Box has opened its first off-premise-only restaurant prototype in Tulsa, Oklahoma, the chain announced Tuesday.
The 1,350-square-foot restaurant features a double drive-thru, walk-up window for ordering, dual assembly kitchens and a pickup window for mobile and third-party delivery orders.
The prototype is part of the company’s overall strategy to grow via franchising, which Jack in the Box restarted in 2021 and recently enhanced with a discounted royalty rate for new multi-unit operators.

Dive Insight:

Since relaunching franchising, the company signed agreements for 233 restaurants in the coming years as of fiscal Q3 2022, CEO Darin Harris said during an August earnings call. Thirteen of these restaurants have already opened. The chain has had more site approvals during the previous six quarters than it had in the preceding three years, Harris said. The company is also planning openings in Salt Lake City, which has proximity to core markets and high demand, as well as Louisville, Kentucky, a white space territory for the company, he said.

The prototype could help accelerate these openings. It is expected to reduce construction costs by roughly 20% and improve real estate flexibility, the press release states. The model doesn’t have any interior seating, which could reduce furniture and fixture costs. The prototype can be used in free-standing locations, but can also be adapted to fit convenience stores, travel plazas and endcap locations. The design incorporates a “big red box” facade and purple exterior lighting, which is reflective of its late night menu colors.

“With the benefits of increased drive-thru efficiency and streamlined operations, this new model makes the Jack in the Box franchise opportunity more appealing for customers and franchisees alike,” Tim Linderman, Jack in the Box chief franchise and corporate development officer, said in the press release.

Several chains have been leaning into smaller, off-premise-only designs due to ongoing consumer preference for convenience. Jack in the Box’s sister company, Del Taco, also unveiled a drive-thru-only model in 2020. Panera opened its first digital-only restaurant in Chicago earlier this year. Rego Restaurant Group developed a modular drive-thru-only design for Quiznos and Taco Del Mar in August.