Mr. Nugent: Jack In The Box started here in San Diego in 1951, and it started as a company-owned and operated business that was vertically integrated. What I mean by that is the individual who founded it did not believe in franchising, and he believed also that he could have better quality if he controlled the production and distribution of the food stuffs. That concept stayed in place for about 30 years. Then, around 1980, we got out of the manufacturing business but stayed in the distribution business and got into the franchising business. So we now are a regional chain of fast food hamburger restaurants. There are just over 1,500 primarily in the West, Southwest, and now we're moving into the Southeast. We are really a restaurant operating company. We own and operate more than 1,200 of our restaurants, and about 300 are franchised.
TWST: Are they all sit-down restaurants or is there some carry-out as
well? How does that work?
Mr. Nugent: All of our restaurants have inside seating, but the
preponderance of our business is really done through drive-through. More
than 60% of our sales are at the drive-through window, and we have
another 20-25% that's take-out. So a small percentage, 15-20% of our
business, is really purchased and consumed inside the restaurant.
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