In-N-Out Burger.html

 
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In-N-Out Burger
Type Private
Founded Baldwin Park, California, USA (1948)
Headquarters Irvine, California
Area served California, Arizona, Nevada, Utah
Key people Lynsi Martinez (Owner)
Mark Taylor (President)
Roger Kotch (CFO)
Revenue Estimated US$ 216.8 million (2007)1
Website http://www.in-n-out.com/

In-N-Out Burger, usually called In-N-Out, is a chain of fast food restaurants located in the Western United States. Founded in 1948 by Harry Snyder and his wife Esther, and headquartered in Irvine, California, In-N-Out Burger has since expanded outside Southern California to the rest of the state, and to Arizona, Nevada, and southern Utah as well.2 In-N-Out has never franchised, and plans to remain privately owned.3

The In-N-Out restaurant chain has developed a loyal customer base456 and is one of the few fast food chains in the United States to pay its employees significantly more than state and federal mandated minimum wage– starting at $10 per hour in California, as of January 2008.7 The In-N-Out logo has become an iconic image and symbol of Southern California culture.8

Contents

History

In-N-Out drink in front of Southern California palm trees. In-N-Out's packaging features coconut palms.

In-N-Out's first location was opened on October 22, 1948 by Harry Snyder and his wife Esther Snyder at the northwest corner of what is now the intersection of Interstate 10 and Francisquito Avenue in the Los Angeles suburb of Baldwin Park, California. According to the company website, the Snyders had a simple plan which is still in use today:

Give customers the freshest, highest quality foods you can buy and provide them with friendly service in a sparkling clean environment.

A second In-N-Out was opened in the San Gabriel Valley three years later, and the company remained a relatively small Southern California chain until the 1970s. Only 18 restaurants were in existence when Harry Snyder died in 1976 at the age of 67.9

Second generation and expansion

In-N-Out headquarters at University Tower in Irvine

In 1976, Rich Snyder, 26 years old at the time, became the company president after his father's death. Along with his brother Guy, Rich had reportedly begun working in his father's In-N-Outs "from the ground floor" at an early age. Over the next twenty years, the chain experienced a period of rapid growth under Rich's leadership, expanding to over 90 stores.3 On December 15, 1993, Rich Snyder and four other passengers died in a plane crash on approach to John Wayne Airport in Santa Ana, California after opening store #93 in Fresno, California.10 The charter aircraft they were on had followed a Boeing 757 in for landing, became caught in its wake turbulence, and crashed. The ensuing crash investigation led to the FAA requirement for an adequate distance between heavy aircraft and following light aircraft to allow wake turbulence to diminish.

Upon his death, Rich's brother Guy Snyder assumed the presidency and continued the company's expansion into the 1990s. In 1992, In-N-Out opened its first non-Southern California restaurants in Las Vegas, Nevada. Expansion then began into Northern California, including the San Francisco Bay Area, while additional Las Vegas-area restaurants continued to open.

In 1999, Guy Snyder died from an overdose of the pain-killer Vicodin.5 He was only president for 6 years, but in this time In-N-Out had expanded from 93 to 140 locations.3 Esther Snyder, his mother and one of In-N-Out's original two founders, subsequently took the presidency.

A new age

Locations in Arizona were established in 2000, while other Nevada restaurants were opened in Reno, Sparks, and Carson City in fall 2004. In-N-Out became a huge success in these new locations. In 2007, the opening of the first store in Tucson, Arizona broke company records for most burgers sold in one day along with the most sold in one week.11

While the company grew, it struggled to maintain its family roots. Esther Snyder died in 2006 at the age of 86 and passed the presidency to Mark Taylor, former vice president of operations. Taylor became the company's fifth president and first outsider to hold the position, although he does have ties to the family. The company's current heiress is Lynsi Martinez, daughter of Guy and only grandchild of Harry and Esther Snyder. Martinez, who was 23 years old at her grandmother's death, will gain control of the company in stages over 12 years.1213

In 2006, a lawsuit exposed a possible family feud over the chain's corporate leadership. Richard Boyd, one of In-N-Out's vice presidents and co-trustee of two-thirds of the company stock, accused Lynsi Martinez and allied corporate executives of trying to force out Esther Snyder and attempting to fire Boyd unreasonably. Pre-empting the suit, Martinez, Snyder and Taylor appeared in a December video message to employees, telling them not to believe everything they hear.4 The company then responded with a lawsuit of its own, alleging that Boyd had construction work done on his personal property and charged it to the company, as well as favoring contractors with uncompetitive bids.5 Boyd was then suspended from his role as co-trustee and Northern Trust Bank of California took his place (as co-trustee) until a hearing set for May 10, 2006. However, in April the judge dismissed two of In-N-Out's claims against Boyd. A trial date of October 17, 2006 was set but never occurred, and a settlement was reached out of court.14 Ultimately, Boyd was permanently removed from his role as an employee and co-trustee.15

In-N-Out soon became involved in yet another lawsuit. In June, 2007, the company filed suit against an American Fork, Utah restaurant named "Chadders" for trademark infringement, claiming that the "look and feel" of the restaurant too closely mimicked In-N-Out, and that the restaurant violated trademarked menu items, such as "Animal Fries."16 A judge issued a temporary restraining order against the look-alike, but the issue has yet to be definitively resolved.1718

Menu

A selection of menu items, clockwise from the top-right: A cheeseburger with onions only, a plain Double-Double, two orders of regular fries, and an order of fries made "Animal Style"

In-N-Out has a limited menu consisting of only three different sandwiches: the hamburger, cheeseburger, and "Double-Double" (double meat/double cheese). French fries and fountain drinks are available, as well as three flavors of milkshakes. The hamburgers come with lettuce, tomato, with or without onions (the customer is asked upon ordering, and may have them fresh or grilled), and a sauce, which is called "spread."

There are, however, additional named items that are not on the menu, but are available at every In-N-Out. These variations reside on the chain's "secret menu," though the menu is accessible on the company's web site.19 These variations include 3x3 (which has three patties and three slices of cheese), 4x4 (like the 3x3 only with 4), neopolitan shakes, flying dutchman (two patties, two cheese, no buns or condiments). By adding patties at an additional cost, one could conceivably create a burger of any size; 100x100 burgers have even been ordered before.20 As of recently, the highest amount of patties assembled can only come out to a 4x4; this is to ensure a quality product.citation needed

Store design and layout

In-N-Out restaurant in Pinole, California with one drive-through lane and an indoor dining area

The signature colors for In-N-Out are white, red, and yellow. The white is used for the buildings' exterior walls and the employees' basic uniform. Red is used for the buildings' roofs and the employees' aprons and hats. Yellow is used for the decorative band on the roof and iconic zig-zag in the logo. However, variations in the color scheme do occur.

The first In-N-Outs had a common design, placing the kitchen "stand" between two lanes of cars. The "front" lane is nearest the street, and the "back" lane away from the street. A metal awning provides shade for several tables for customers desiring to park and eat, but there is no indoor dining. A walk-up window faces the parking area. In these stores, storage of food and supplies is in a separate building, and it is not uncommon for a driver to be asked to wait a moment while employees carry replenishments to the kitchen across the rear lane.

This simpler design is a popular image on In-N-Out ads and artwork, which often shows classic cars such as 1965 Mustangs and 1968 Firebirds visiting the original stores. The original Covina store, located on Arrow Highway west of Grand Avenue, was forced to close in the early 1990s due to re-engineering and development of the area. A modern design, drive-up/dining room restaurant was built a few hundred feet away. The new building is much larger (approximately half the size of the entire lot upon which the earlier restaurant sat), and is often filled to capacity.

The In-N-Out Burger at the corner of Gayley and Le Conte in Westwood, Los Angeles near the UCLA campus, designed by Kanner Architects

Like many chain restaurants, newer In-N-Out stores are based on a set of templates or "cookie-cutter" blueprints, which are chosen based on available space and expected traffic levels. However, some stores are designed to be unique to fit into the surrounding architecture, or to stand out. Notable "unique" In-N-Out locations include the store on Fisherman's Wharf, San Francisco, the restaurant in Westwood, Los Angeles and the restaurant in Valencia, Santa Clarita.

Today's typical location has an interior layout which includes a customer service counter with several computers and registers in front of a kitchen and food preparation area. There are separate storage areas for paper goods (napkins, bags, etc.) and "dry" food goods (potatoes, buns, etc.), as well as a walk-in refrigerator for perishable goods (lettuce, cheese, spread etc.), and a dedicated meat refrigerator for burger patties. The customer area includes an indoor dining room with a combination of booths, tables, and bar-style seating. Outside seating is usually available as well, with tables and benches. Most newer restaurants contain a one-lane drive-through.

Example of palm trees crossed in an 'X' that can be found in front of many In-N-Out Burger restaurants

There are other design elements common among today's In-N-Out locations. Matching In-N-Out's California-inspired palm tree theme, palm trees are sometimes planted to form a cross shape in front of the stores. This is an allusion to founder Harry Snyder's favorite movie, Stanley Kramer's It's a Mad, Mad, Mad, Mad World in which individuals look for a hidden treasure and find it under "the big W" made by four palm trees, with the middle two forming an 'X'.

Advertising

A company motto of "Quality you can taste".

In-N-Out has a dedicated fanbase, and benefits highly from the positive word of mouth spread by its enthusiastic following. The company assists their fans in propagating its iconic label by displaying In-N-Out clothing in every store, which is readily available online, something unique for a fast food chain.21 The chain has many celebrity fans (see below), and enjoys a variety of free endorsements from the media. When Heisman Trophy winner and Ohio State quarterback Troy Smith went into a passionate description of the restaurant at the BCS National Championship Game podium, Executive Vice President Carl Van Fleet was quoted as saying, "It does not get much better than that for us, we're kind of a small company, and we do not have any celebrity endorsers. But I think we just got the best one we could have."22 The 1998 cult classic The Big Lebowski contains a scene with the main characters happily enjoying their In-N-Out burgers.

The well-known "secret menu" and hidden passages on products may also function as a form of viral marketing. In some cases, In-N-Out directly uses its positive image and dedication to quality as a selling point. This is most evident in its two slogans: "Quality You Can Taste," and "Cleanliness You Can See." The company's use of references to the bible and reputation for unique employee benefits may more indirectly propagate this positive image. The references to its Southern California roots (such as the palm-tree motif) most likely appeal to its niche market in California, and may even appeal to others outside California.citation needed

Like other chains, In-N-Out uses billboards strategically located on roads leading to individual restaurants, with relevant information such as distance to the restaurant and driving directions. These ads commonly feature the recognizable image of a Double-Double. In keeping with their image, commercials are usually understated and straight-forward. Radio commercials are common in some areas. The commercials are short, and are generally limited to a characteristic jingle: "In-N-Out, In-N-Out. That's what a hamburger's all about." Television commercials are less common. When the ads do appear, the visual appeal of the hamburger is generally the sole focus. In-N-Out very rarely relies on spokespersons or actors for its commercials, although at one time John Cleese and John Goodman voiced radio spots. In the past, the Snyders also sponsored Christmas music programming and gave voice-overs expressing the meaning of the holiday.

Culture

Popularity

The In-N-Out Burger sign at Fisherman's Wharf in San Francisco

The burger chain has achieved widespread popularity which has lead to celebration by some when brought to new locations, and the opening of a new restaurant often becomes an event. When one opened in Scottsdale, Arizona, there was a four-hour wait for food, and news helicopters whirled above the parking lot.2

The chain's image has also made it popular in more non-traditional ways. For example, In-N-Out is still considered acceptable in some areas with a strong opposition to corporate food restaurants, such as McDonald's. When the location at Fisherman's Wharf, San Francisco opened, local business leaders said that they opposed every other fast food chain except In-N-Out because they wanted to maintain the flavor of family owned, decades-old businesses in the area.6 The chain has vocal celebrity fans which leads to publicity in news articles on them, and has also been featured in movies.

Bible references

Bible reference on the bottom of an In-N-Out drink cup

In-N-Out prints discreet references to Bible verses on their paper utensils. The print is small and out of the way, and only contains the book, chapter and verse numbers, not the actual text of the passages. The practice began in the 1980s during Rich Snyder's presidency,23 a reflection of the beliefs held by the Snyder family:

  • Burger and cheeseburger wrappers
Revelation 3:20—"Behold, I stand at the door, and knock: if any man hear My voice, and open the door, I will come in to him, and will dine with him, and he with Me."
  • Beverage cups and antenna toppers
John 3:16"For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life."
  • Milkshake cups
Proverbs 3:5—"Trust in the LORD with all thine heart; and lean not unto thine own understanding."
  • Double-Double wrapper
Nahum 1:7—"The LORD is good, a strong hold in the day of trouble; and he knoweth them that trust in him."
  • Paper water cups
John 14:6—"Jesus saith unto him, I am the way, the truth, and the life: no man cometh unto the Father, but by me."

References

  1. ^ "In-N-Out Burgers, Inc. Company Profile".
  2. ^ a b "The Secret Behind A Burger Cult", New York Times (2002-08-14). Retrieved on 21 July 2007. 
  3. ^ a b c "History". Retrieved on 2008-11-01.
  4. ^ a b Pomfret, John (2006-08-06). "In Calif., Internal Lawsuits Served Up at Burger Chain".
  5. ^ a b c "In-n-out burned by exec's lawsuit". Los Angeles Business Journal (2006-08-06).
  6. ^ a b "In-N-Out Burger Beefs Up the Wharf Chain's followers now have S.F. site" (2006-08-06).
  7. ^ Rubenstein, Steve (2006-08-07). "Chain reaction / San Francisco job applicants come by the dozen to interview for jobs at a new In-N-Out restaurant / $9.25 per hour plus meal".
  8. ^ Pellegrini, Frank (August 21 2000). "Restaurant Review: The In-N-Out Burger". Time. Retrieved on 2008-11-01.
  9. ^ "Esther Snyder, In-N-Out Burger Founder, Dies at 86", New York Times (2006-08-13). Retrieved on 4 April 2008. 
  10. ^ "In-N-Out Burger -- Company History" (2006-08-06).
  11. ^ "In-N-Out Burger's all-stars set record with Tucson opening" (2007-06-15).
  12. ^ "In-N-Out matriarch Snyder dies at age 86" (2006-08-06).
  13. ^ "Esther Snyder, matriarch of In-N-Out Burger, dies" (2006-08-06).
  14. ^ "In-N-Out ordered to alter some claims in lawsuit". Money (2006-08-06).
  15. ^ "In-N-Out, former VP reach secretive settlement" (2006-08-06).
  16. ^ "In-N-Out wins one over Chadders" (2007-06-30).
  17. ^ "In-N-Out Burger Suing American Fork Burger Joint" (2007-06-19).
  18. ^ "In-N-Out wins one over Chadders" (2007-06-30).
  19. ^ http://www.in-n-out.com/secretmenu.asp
  20. ^ http://www.supersizedmeals.com/food/article.php/20060125050438458
  21. ^ http://www.time.com/time/nation/article/0,8599,53002,00.html
  22. ^ http://www.cleveland.com/osufootball/plaindealer/index.ssf?/base/sports/116790370573501.xml&coll=2
  23. ^ Savio, Kelly (2006-08-09). "The Ins and Outs of In-N-Out". Gilroy Dispatch.

Further reading

External links

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