Monday, May. 05, 1975
Jack v. Mac
With the spunk of a David attacking Goliath, the Jack-in-the-Box fast-food chain is slinging pebbles at the monarch of hamburgerland, McDonald's. For the past seven weeks, TV ads in seven U.S. cities have touted such Jack attractions as spotless premises, new uniforms, quick service and indoor seating. So far, so conventional--but as the ad ends, the TV screen fills with the well-scrubbed faces of eight Jack-in-the-Box employees who squeal: "Watch out, McDonald's! Watch out, McDonald's!"
The brash ads open a new battle in a marketing war that so far has been fought mostly over menus. Jack's officials claim that Jack's Bonusburger begat McDonald's Big Mac--but concede that McDonald's Fillet O'Fish begat the Moby Jack. In early morning skirmishes, Breakfast Jacks fight Egg McMuffins. In its ads, Jack long tried to counter Ronald McDonald with Rodney Allen Rippy, a five-year-old who demonstrated on TV his inability to stuff a Jumbo Jack burger into his mouth.
Long Toco. Jack's aim, of course, is to catch up with McDonald's. It has a very long way to go. The Jack-in-the-Box chain, which is owned by a subsidiary of Ralston Purina Co., comprises 800 restaurants in 24 states; last year they racked up sales of $268.5 million. McDonald's owns or franchises 3,400 restaurants in the U.S. and 17 foreign countries; in 1974 chain wide sales totaled $1.9 billion. But Jack's sales have risen 15% since the "Watch out, McDonald's!" ads began running. They will go up even more next month, predicts Marketing Vice President John Castiglione, when Jack unsheathes a new weapon: a 7 1/2in.-long Super Taco.
McDonald's officials take the direct assault with unruffled patriarchal calm. Says Public Relations Director Matt Lambert: "We couldn't be anything but pleased that their advertising stresses our success." Anyway, the fast-food battle is a three-or even four-front war. Burger King, another contender in the hamburger hassle, has funded a $3,000 "John Denker Scholarship" at the California Institute of Technology to honor a Caltech student who recently sabotaged a $47,000 McDonald's-sponsored contest. Denker found a loophole that allowed him and 25 fellow students to submit more than 1 million computerized entries and win close to half the prizes. Meanwhile, McDonald's is test-marketing a $1.10 fried-chicken plate. If it succeeds, it would not only steal a march on Jack-in-the-Box and Burger King, but put itself into thigh-to-thigh combat with another fast-food giant: Kentucky Fried Chicken.
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