Contract Offers Renew Fizz in Cola Wars

Jack in the Box Restaurants Switch to Coca-Cola

An estimated 300 Jack in the Box franchise restaurants are switching ranks when it comes to soft drinks. San Diego-based restaurant operator Foodmaker Inc. renewed its contract with Coca-Cola Co. to serve Coke at its 1,000 company-owned restaurants. Terms of the new contract call for the 300 franchise-operated restaurants to drop Pepsi and pick up Coke in March. The contract offers more evidence that the cola wars are heating up. Coca-Cola controls an estimated 65% of the restaurant supply business, while PepsiCo Inc. has 25% of the market. Pepsi hopes to build market share now that it has spun off the KFC, Pizza Hut and Taco Bell restaurant chains. Rival restaurant chains were hesitant to do business with PepsiCo while it owned the chains.