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Jack in the Box applies artificial intelligence to site selection

jack in the box
Jack in the Box is supporting growth with AI.

Jack in the Box is utilizing artificial intelligence (AI) technology to optimize market expansion and analysis of where to place new stores in existing markets.

The quick-service hamburger chain is deploying the AI-based location intelligence platform from SiteZeus to identify areas across the country where consumers are most likely to visit a Jack in the Box restaurant. The solution offers features including real-time insights, white-space analysis, and sales forecasting.

Jack in the Box is also using the SiteZeus software's data modeling to better understand the factors driving each store's success and develop regional strategies. The retailer leverages the platform's sales forecasts to help it more efficiently pinpoint promising sites in order to acquire prime real estate before competitors have the opportunity.

“SiteZeus' white-space analysis will help us prioritize growth opportunities and quickly enable us to guide franchisees toward the best opportunities," said Tim Linderman, senior VP, chief development office, Jack in the Box.

"The key selling points for us were the speed with which SiteZeus was able to create and validate a model and the ability to update that model as often as we'd like," said Jason Scarbrough, lead financial analyst at Jack in the Box.

Jack in the Box signs big development deal

The retailer is rolling out SiteZeus on the heels of signing an agreement with Jeff Yablun and Frank Conley of Cedar Tree Restaurant Group for 37 new restaurants and 46 existing stores in four Southeast markets.  The markets include Nashville, Tenn.; Baton Rouge, La.; Greenville, S.C.; and Charlotte, N.C.

The deal came after the brand’s fourth quarter earnings call, where it was announced that Jack in the Box is projecting positive net unit growth for the first time in four years. Out of the 267 new franchise commitments that have been signed with Jack in the Box since mid-2021, the Cedar Tree 37-unit development agreement represents its single largest deal.

In addition, Jack in the Box has been upgrading its digital capabilities and undergoing shifts in the C-suite. In October 2022, it launched a brand-new ordering website and native mobile app. In December 2022, the company announced that Tim Mullany, executive VP and CFO, will be leaving for personal reasons, effective February 2, 2023. Mullany joined Jack in the Box in January 2021 and led the company’s acquisition of Del Taco.

Founded and headquartered in San Diego, Calif., Jack in the Box Inc. operates and franchises its namesake chain, which has more than 2,180 namesake restaurants across 21 states, and Del Taco, the second largest Mexican-American QSR chain by units in the U.S., with approximately 600 restaurants across 15 states.

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