Jack in the Box Launches C-Store

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Jack in the Box Launches C-Store

SAN DIEGO -- Convenience store owners trying their hands at the foodservice business is hardly anything new, but in an unusual twist of channel blurring, San Diego-based quick-service restaurant (QSR) chain Jack in the Box Inc. today announced it has decided to enter the c-store business.

In 2003, the company plans to open eight co-branded sites, which will include a full-size Jack in the Box restaurant, an adjacent Quick Stuff convenience store and a major fuel offering. The company is partnering with Chevron, Shell, Texaco, ARCO and CITGO to supply fuel to the locations. Each part of the co-branded concepts will be operated by Jack in the Box.

"This new business venture allows us to grow in new ways and increase revenues and profits by sharing the development costs of three separate convenience businesses at premium locations in high-traffic areas," Robert J. Nugent, chairman and CEO of the chain, said in a release.

During the next five to seven years, up to 25 percent of all new company-operated restaurants will include a 24-hour, 2,000-square-foot convenience store with four to six pay-at-the-pump gasoline dispensers. The restaurants will be connected to the convenience stores by a common area that will include restroom facilities.

Hardly a newcomer to the co-brand business, Jack in the Box leases space at 33 convenience stores in California, Hawaii, Idaho, Missouri, Nevada, North Carolina, Tennessee, Texas and Washington. The company has successfully tested its own Quick Stuff concept at 12 locations in California, Texas and Arizona.

"With our own history in a convenience business, we are confident that our co-branded concept will enable us to compete more aggressively and extend the Jack in the Box brand in new and existing markets," said Nugent.