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1. In-N-Out Burgers Divya Mishra & Team Presented by

3. CURRENT SITUATION & KEY ISSUE

4. TARGET MARKET & COMPANY ANALYSIS

5. CPEST & SWOT ANALYSIS

6. PORTER’S FIVE FORCES

8. Leading fast-food retail chain with 171 locations in California, Nevada and Arizona

9. A private, family-run, non-franchised company

10. Known for its made-to-order hamburgers, fresh ingredients and efficient service

11. Maintained the steady rate of expansion with traditional menu and a simple, customer-friendly philosophy

13. Provide team-oriented atmosphere whereby goal-setting and communications exist

15. KEY ISSUE The key issue is if and how the company should expand its operations? Established the line of succession in leading and controlling all the operations with out franchising

16. TARGET MARKET & COMPANY ANALYSIS

17. Target Market Generational Customers Young singles Tourists College/School Students

18. Company Analysis In-N-Out

19. Company Analysis Contd.. The fast food industry is at the maturity stage of the life cycle graph. The growth rate of In-N-Out is currently 8-10% which is way higher than the industry average of 4 %. The store average revenue is estimated to be $1.2 million per store by 2003. The company has a loyal customer base; it is applying controlled expansion strategy to retain the traditional taste.

20. The company has opposed franchising. The company considers employees as the heart of the company. The company is paying more than the industry average to the employees and thus enjoys higher employee retention ratio. The employees are paid 8.25$ to 9.25$ per hour almost 1.50$ to 2.50$ more than California’s minimum wage. The employee receives benefits that include paid vacations ,401(k),retirement plan with matching company contributions and discounted medical, dental and vision coverage. Company Analysis Contd..

21. CPEST

23. International: Competition among big players like McDonald & Burger king

24. National

25. McDonald is largest food chain

26. Burger king on second spot

27. Wendy occupies the third spot

28. Price war: Wendy($4.75), McDonald ($ 4.25), Burger king ( $3.50)

29. Product: variety in menu and meal options

30. Promotion: remodeling the restaurants, new store format, free toys, movie tie-ins

32. Competition at local level is more in quality of food and themes of the restaurant

33. Competition among fast food burger chains as well as casual dining restaurants like Panera bread, Subway is increasing.

35. Food handling

36. Staff must wear special aprons /hats to maintain hygiene

38. Disposable income of consumers is high

39. Restaurants in the fast casual segments experiencing unit sale volume growth of up to 40%

40. Cost of material is rising

41. Oil prices rising

43. Increased focus on the nutrient content of food

44. Increased demand for casual dining theme restaurants

46. Drive through option

47. Online placement of the orders as a result of increased used of internet.

48. Increasing use of technology for inventory management

49. Touch screen computers at the point-of- purchase to provide quick service

50. Restaurants are introducing wireless networking, internet terminals into the stores.

51. SWOT ANALYSIS

52. SWOT Analysis

53. SWOT Analysis Contd..

54. FIVE FORCES

55. Five Forces

57. ALTERNATIVE RECOMMENDATIONS

58. Alternative Recommendations Expand regionally in a slow, controlled manner: This would include expansion of the In-N-Out’s operations within the current operating states Expand aggressively by pursuing national growth: Aggressively increase the number of stores in current operational states and develop new stores throughout the country at the same time. Expand the company by pursuing new target markets: Increase the product line by offering more varieties to the menus. Instead of expansion, focus on maintaining and increasing the profitability of current locations: Keep the operation of the company as is, focusing on the current stores and maintain the current customer base.

61. Questions