This document provides an overview of the In-N-Out Burger fast food chain. Some key points:
1) In-N-Out Burger focuses on fresh, high-quality ingredients for its burgers, fries, and shakes. They do not freeze or microwave foods and prepare each meal fresh per customer order.
2) The family-owned company has remained small in scale, operating primarily in Western states, to maintain control over its supply chain and preparation methods.
3) Customers demonstrate strong loyalty to In-N-Out Burger and its simple menu. They are eager to work for the company and excitedly await new location openings.
4) In-N-
1. C S P September 2011 121
P
ull up to any of the more than
250 In-N-Out Burger restau-
rants, and you’ll see a striking
resemblancetoanotherfast-foodchain—
but in color only.
The chain’s red-and-white motif,with
asignature yellowboomerangarrow,may
look like a McDonald’s restaurant, but
the company has a much different appeal.
Anchored in the nation’sWestern region,
In-N-Out Burger basks not in Happy
Meals or Big Macs, but in food char-
acterized by purity on its menu: 100%
vegetable oil, 100% ice cream and 100%
pure beef.
There is a certain curiosity,if not mys-
tery,about this 63-year-old family-owned
company that shuns the press (includ-
ing this one) and yet two years ago was
named the country’s best quick-serve
restaurant in a survey of 94,000 users.
Here are just a few of the ingredients
that distinguish In-N-Out:
▶ Customization: From inventory
to retail, a sense of exclusivity pervades.
Tomatoes are grown specifically for the
company’s burgers, and buns are baked
just for them. Potatoes are pared and
sliced at each location.
▶ Freshness: In-N-Out does not use
microwaves or freezers. No meal is pre-
pared until the customer places an order.
What’s Red
and White
and Sizzles?
‘Secret’ menu, devoted fans make
In-N-Out Burger a cult favorite
By Jim Romeo
At a Glance
In-N-Out Burger
Founded: 1948
Headquarters: Irvine, Calif.
Locations: 260 locations, mostly in
California; scattered locations in other
Western states including Utah,Wash-
ington,Texas,Arizona and Nevada.
Revenues: Private corporation,though
Orange County Business Journal esti-
mated its 2010 revenues at $465 million.
PhotosbyBrentSchmidt
[special foodservice section]
2. C S P September 2011122
▶ Family Control:The eatery refuses
to franchise and has not expanded too far
East of its original Southern California
base.With few exceptions, the menu has
not varied in more than 60 years. And
many of its employees have worked the
counters for two decades.
In a word, the company is about one
thing: culture.
“This is as much a part of the In-
N-Out brand as are the palm trees out
front,” says James Sinclair, a principal
with Los Angeles-based OnSite Consult-
ing, a national hospitality and restaurant
consulting company with a focus on food
and beverage and fast-food restaurants.
“Their growth model has to include new
distribution plants so that their loyal
customers don’t ever question the fact
that the product is fresh and not frozen.
This also gives In-N-Out control over
the raw goods; they are never in a posi-
tion to hope that the stores are ordering
from the right company or that the local
storemanagerunderstandswhatthefresh
product should look and/or taste like.”
In-N-Out Burger is a study in no-
nonsense food, served up with a hard-
to-explain appeal.
Happy CuStomeRS, Happy WoRKeRS
A visit to In-N-Out feels like an outtake
from the movie “American Graffiti”: a
trip down memory lane with traditional
burgers, fries and shakes, from which a
devout customer loyalty emerges.
In some Western states, for example,
locals have launched signature drives to
petition bringing an In-N-Out to their
town. When one opened in north Texas,
customers camped out the night before
to be among the first to order.
From its red festooned palm trees on
its cups and fry trays to the online store’s
fries and burger Christmas tree orna-
ments and In-N-Out golf balls, some-
thing about the whole In-N-Out package
creates a built-in network of fans who
promote the brand, unsolicited.
When an In-N-Out was about to open
inArroyo Grande,Calif.,a fan posted the
following on an online forum in anticipa-
tion, a sentiment resembling that of a
heavy-metal groupie:
“Iampumped tohave In-N-Out open
here in [Arroyo Grande]. … As for the
line, it took me 30 minutes total to stand
in line and receive my food.I went about
12:45 p.m.opening day,so I didn’t expect
to wait any less, and there was a line just
to get into the parking lot being blocked
off by all the drive-thru-ers. I’m sure it
will be busy for a long,long time,though.
But always worth the wait.”
Not only do customers want to
patronize the food offering,but they also
wouldn’t mind working for the company.
In 2008, when In-N-Out announced it
would be hiring about 50 people for a
In-N-Out’s
Menu Lexicon
If you’ve been to an In-N-Out,you already
know the slang. If you haven’t and don’t
want to come across as a newbie, here’s
your quick guide:
Animal Style:
Refers to extra spread,onions and pickles
fried into the burgers as they’re cooked.
Double-Double:
Double meat, double cheese.
3 by 3 selection:
Three patties stacked high with or
without certain fixings.
4 by 4:
Same as 3 by 3 but with four patties.
Protein Style:
Your favorite burger wrapped in lettuce
instead of a bun.
3. C S P September 2011124
new location to open in west Sacramento,
approximately 500 circled around the
block to place their application.The same
episode played out in Utah the following
year and in Santa Rosa, Calif., the year
after that. It happens all the time. Folks
are eager and anxious to be a part of the
In-N-Out staff.
Itmakesoneask,seriously:Whatisthe
story behind this excitement and success?
DennisLombardi,executivevicepresi-
dent of foodservice strategies for Dublin,
Ohio-based WD Partners, believes much
of it can be attributed to a controlled geo-
graphical West Coast presence, a limited
menu and “offering the theater of fresh
food,”he says.“Customers love to watch
them hand-cut the french fries.”To watch
thebrigadeof redpants,whiteshirts,black
bowties and white aprons slice and dice
potatoes is a spectacle in itself and part of
the pageantry of fast-food served up with
a smile. It complements the freshness in
its food.
“Does freshness and quality matter?”
Lombardi asks rhetorically. “Yes, they
absolutely do.And the rise of‘fast casual’
has increased the focus on higher-
quality menu offerings, products and
In-N-Out Burger is a
study in no-nonsense
food, served up with a
hard-to-explain appeal.
4. C S P September 2011126
ingredients. But it’s not the only consideration for customers.
Value, cleanliness, speed of service and a convenient location
are also very important attributes when people are choosing
where they will eat.”
“The founders,Harry and Esther Snyder,held the exception-
ally strong belief that to be successful, you served the freshest,
highest-quality burgers and fries; treated your employees well;
and [treated] your customers even better,”says organizational
psychologistBillieBlair,presidentandCEOof ChangeStrategists
Inc.,LosAngeles.
Simple Formula Wins
In-N-Out doesn’t doesn’t seek out fame and glamour, but it
seems to get it anyway because of an unspoken dedication to
ordinary people wanting good traditional American burgers
and fries. Sinclair of OnSite Consulting says In-N-Out is a
classic offering of quality and service coupled with nostalgia
and ambiance.
“In-N-Out does not misstep,” says Sinclair. “They know
what works for them and they do not get tempted to change
due to greed. You don’t see them in amusement parks or on
Hollywood Boulevard. They are on highways and major bou-
levards.They have always gone after the‘everyman’consumer.”
In some ways, its branding strategy seems easy: Make
the ordinary extraordinary, and think like a customer.“This
company shows the power of a strong brand,” says branding
expert Scott Creamer, CEO and founder of The Screamer Co.,
Austin, Texas.“Burgers are commodities and competitors are
everywhere. But In-N-Out Burger made itself special.”
The chain hasn’t spent much on advertising over the years,
Creamer says; it prefers instead to build its brand through old-
school word-of-mouth marketing. The company capitalized
on that in the early ’80s, when it gave away bumper stickers
and used them to initiate a sweepstakes, which turned into a
popular promotion with little investment.
“The company motto is, ‘Quality you can taste,’ ” says
Creamer.“Sure, they’re serving up burgers, fries and shakes,
basic stuff, but it tastes healthier than the usual fare.
“Consumers felt a connection with In-N-Out’s simple,
almost quaint brand, and it was clear that Rich knew the value
in preserving that,” Creamer continues, referring to the son
of Harry Snyder, In-N-Out president since 1974.“I think the
brand harkening back to an earlier time when food was simple
and not laden with the overprocessed additives,etc.,is another
smart aspect of this campaign. It’s a great visual/psychological
marketing strategy. The same is true of its limited menu. It’s
what we were used to before we became the nation of choices.”
Another interesting component of its branding strategy is
that less hype means more demand. Rob Frankel, an indepen-
dent branding expert, says In-N-Out’s approach underscores
the trademarks of a successful brand: authority,credibility and
clarity.“It chooses to keep its executions basic and free of slick
overhype,” Frankel says.“As a result, the public understands
and can articulate why they prefer In-N-Out to other brands.”
Menu Modesty
In-N-Out’s menu is something of a lesson in the grandeur of
simplicity.There’snothingsophisticatedaboutitsoffering:burg-
“Any private equity firm that I know
would love to own In-N-Out. It’s
an excellent brand with an excellent
reputation.”
5. C S P September 2011128
ers,fries,andshakes—commonchoicesforaclassicburgerjoint.
But there’s a unique parlance in what one asks for in an order.
The company ironically refers to it as its “not-so-secret”
menu, developed by customer preference. For example,“Ani-
mal Style”refers to extra spread, onions and pickles fried into
the burgers as they’re cooked. A “Double-Double” is double
meat, double cheese. The “3 by 3” selection is simply three
patties stacked high with or without certain fixings.“4 by 4”is
the same with four—yes, four—patties.
There are no menu gimmicks at In-N-Out Burger.“Their
‘secret’ menu,” says Lombardi of WD Partners,“was created
by their own loyal customer base (hence, not-so-secret),
and predicated on the fact that In-N-Out will happily create
custom orders. It was never any marketing campaign, but it
certainly helped them build word-of-mouth buzz.”
Lombardi likens this “insider” culture to Starbucks’ early
growth period.“Their ‘super customers’ took pride in know-
ing the brand’s coffee vocabulary, and being able to order
coffee beverages using the baristas’ lingo,” he says. “Menu
gimmicks can never take the place of offering good food and
good service.And no one in the foodservice industry considers
In-N-Out Burger a‘ho-hum’ restaurant choice.
“Any private equity firm that I know would love to own
In-N-Out.It’s an excellent brand with an excellent reputation.”
Not Ray Kroc
In-N-Out developed as a company at about the same time that
McDonald’s did.
“The Snyders made the personal decision not to expand
for expansion’s sake,”says Blair of Change Strategists.“In fact,
they were actually opposed to expansion but were talked into
branching out by their employees. In other words, they were
actually opposed to the‘fast food’that Ray Kroc of McDonald’s
espoused. Their philosophy has stood the company in good
stead through the years—it’s been hugely successful in Cali-
fornia, and customer demand was the reason for expansion to
other states.”
Perhaps author Stacy Perman sums up the company best
in the prologue of her book “In-N-Out Burger: A Behind-
the-Counter Look at the Fast-Food Chain That Breaks All
the Rules”:“Not a mere burger joint, In-N-Out was an iconic
institution that obviously stood apart.As I worked on the book,
I grew to believe that the story behind its success had something
to do with the way the chain evoked the kind of passionate fol-
lowing that could only be described as a cult phenomenon.”n