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In-N-Out Burger

In: Business and Management

Submitted By creytonmcdermett
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In-N-Out Burger History and Overview.
The history of In-N-Out Burger starts with the company’s founders, Harry and Esther Snyder. Harry was a WWII veteran who worked as a caterer of baked goods. Esther was a surgical nurse in the Navy, and later got a degree in Zoology. They met each other at the restaurant Esther was managing after she graduated from college. Neither had experience in the fast food industry, which was just starting at that time, but in 1948, the couple opened the first In-N-Out in the Los Angeles, California. Harry was the first to allow drivers to make orders over a two-way intercom system, creating the first Drive-thru experience. Snyder had a simple goal for his restaurant, to give the customers “the freshest, highest quality foods you can buy” while providing “friendly service in a sparkling clean environment”. Soon people started to become interested in this idea. Two years later the couple opened the Second In-N-Out Burger. The chain had huge potential to explode but the couple was very focused on quality control. This resulted in only 18 restaurants being opened over the next 28 years before Harry Synder passed away in 1976 from lung cancer. After Harry died his son who had worked in the restaurants all his live, took the role as company president being just 24 years old. While Rich controlled the company it experienced huge growth. In twenty years the company opened over ninety In-N-Out Burgers. Over this time only one new thing was added to the menu and that was a lemon-lime soda. One of the things special about In-N-Out is the “secret menu”, customers can order a burger “Animal” style which means a “mustard grilled” double-double burger covered with grilled onions and extra In-N-Out special sauce. Today the company website has the whole “secret menu” on it. Rich died in 1993 at the age of 41 in a private plane crash while trying to land at John Wayne Airport in Orange Country, California, along with Philip R. West, In-N-Out Burger’s chief operating officer and executive vice-president. After Rich Snyder died his brother Guy Snyder took over the company through the rest of the ’90s, expanding the company to over 140 locations. In 1999, Guy died from an overdose of painkillers. So that left the company in the hands of the original co-founder Esther Snyder. While competitors like McDonalds grew to thousands of locations, Esther continued the slow pace of In-N-Out’s expansion. In 2000, the chain crossed the California line into Arizona. The family’s control of the company seemingly came to an end with Esther’s death in 2006 at the age of 86. The job of President was then passed to Mark Taylor, former vice president of operations. The chain grew into Utah in 2008 and then to Texas in 2010. Around the same time, Guy’s only daughter Lynsi Martinez, replaced Taylor as president of the company. Today the chain is widely known as one of the few fast food chains to pay employees well above the minimum wages thresholds dictated by the state and federal government.
Strengths and Weaknesses. In-N-Out Burger has much Strength. Most of them come from the company’s desire to maintain the original goal of the company set by Harry Snyder, to give the customers “the freshest, highest quality foods you can buy” while providing “friendly service in a sparkling clean environment”. That goal sets the fast food chain apart from the majority of their competitors. A well-recognized brand is one of the strengths of the company. People know when they go to an In-N-Out the staff will be kind and friendly, as well as when a customer purchases a meal they know it is the freshest, best quality products available. People trust the fast food chain because it is family owned and it’s a company that’s been in business for over 60 years. The employee wages at In-N-Out are much higher than the industry standard. They also have one of the lowest employee turn over rates in an industry that is know to have high turnover rates. Most people that are managers and higher ranked in the company started at the bottom, In-N-Out is a place people can build a career with benefits, paid vacations, and high pay. While having high wages, good food, and a friendly staff, the company still manages to offer food at affordable prices. A Cheese Burger with fries and a drink is just five-dollars and fifty cents. The company owns all of its restaurant. There are none that are franchised. This ensures that they all will be same high quality that Harry and Esther Snyder intended them to be. The last Strength of the company is The In-N-Out Burger Foundation. Since 1984, the foundation aims to give hope to abused and neglected children. Even with such a strong company In-N-Out Burger does have a few Weaknesses. Compared to other fast food chains the In-N-Out menu is very small. Cheeses Burger, Double-Double, Hamburger, Fries, Drinks, and shakes is the whole In-N-Out menu. Another weakness would be the lack of availability to the restaurant to the country. There are only branches in the southwestern United States.
Opportunity and Threats. In-N-Out has many Opportunities to grow and become bigger. They have a very small menu, expanding it may make sense. Putting the more popular “secret menu” items could be an option. Expanding the company is another opportunity they have. Half the country doesn’t have access to the fast food chain. This would lead to more revenue which they could put back into the company to help preserve what they believe in. Starting an aggressive ad campaign to promote In-N-Out Burger could equal more revenue also. Threats to the company would be competitors. Bigger chains could take business away from In-N-Out. The big chains have more money and resources and could aim to take out In-N-Out Burger. Another threat is a healthy eating and living movement. Burgers and Fries aren’t healthy for you and most people that eat healthy wouldn’t eat at In-N-Out or any fast food chain.
What I Think. The strategy In-N-Out has used to do business has worked well for them. I think they should continue with their slow growth plan. The goal is to give the customers “the freshest, highest quality foods you can buy” while providing “friendly service in a sparkling clean environment” and I think that is what they have done. A high growth strategy would result in more revenue and more profit but In-N-Out would lose the great service they have. Eventually I think they could move in to other parts of the U.S. but they should make sure to maintain the quality of In-N-Out Burger. In-N-Out doesn’t want to change what they are doing, they’ve adopted a “no-change” philosophy. The reason I think other chain don’t try to do the same is because they already have a set ways of doing things, they have a reputation for being what they are. It would require down sizing and potentially making less money and since money what those big companies are after I don’t know why they would want to try to do what In-N-Out has successfully done.
Strengths: 1.A well-recognized brand. 2. 274 locations.
3.Wages higher than most fast food chains. 4.Affordable and good quality food.
5.All restaurants are owned by the company and not franchised
6.Child Abuse Foundation Weaknesses:
1. Limited menu.
2.Limited number of branches in US.
Opportunities: 1. Add new items to the menu.
 2. Expansion.
3. Franchising.
4. Advertise the brand aggressively. Threats: 1.Competition
2.Health consciousness.…...

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