In-N-Out headquarters at University Tower in Irvine
|Founded||Baldwin Park, California, (October 22, 1948)|
Number of locations
|Lynsi Snyder (President)
Mark Taylor (COO)
Roger Kotch (CFO)
|Revenue||Estimated US$625 million (2012)|
In-N-Out Burgers, Inc. is a regional chain of fast food restaurants with locations in the American Southwest. Founded in Baldwin Park, California, in 1948 by Harry Snyder and his wife Esther Snyder, the chain is currently headquartered in Irvine. In-N-Out Burger has slowly expanded outside Southern California into the rest of the state as well as into Arizona, Nevada, Utah, and Texas. The current owner is Lynsi Snyder, the only grandchild of the Snyders.
As of January 7, 2015, In-N-Out employed over 18,000 staff and had 300 locations with no location more than a day's drive from a regional distribution center. As the chain has expanded, it has opened several distribution centers in addition to its original Baldwin Park location. The new facilities, located in Lathrop, California; Phoenix, Arizona; Draper, Utah; Dallas, Texas; and Medford, Oregon, will provide for potential future expansion into other parts of the country.
In-N-Out Burger has resisted franchising its operations or going public; one reason is the prospect of quality or customer consistency being compromised by excessively rapid business growth. The company's business practices have been noted for employee-centered personnel policies. For example, In-N-Out is one of the few fast food chains in the United States to pay its employees more than state and federally mandated minimum wage guidelines – starting at US$10.50 per hour in California, as of April 2013. The In-N-Out restaurant chain has developed a highly loyal customer base, and has been rated as one of the top fast food restaurants in several customer satisfaction surveys.
- 1 History
- 2 Legal issues
- 3 Menu
- 4 Store design and layout
- 5 Advertising
- 6 Culture
- 7 The In-N-Out Burgers Foundation
- 8 Original restaurant
- 9 See also
- 10 References
- 11 Further reading
- 12 External links
In-N-Out's first location was opened in the Los Angeles suburb of Baldwin Park, California in 1948 by the Snyders at the southwest corner of what is now the intersection of Interstate 10 and Francisquito Avenue. The restaurant was the first drive-thru hamburger stand in California, allowing drivers to place orders via a two-way speaker system. This was a new and unique idea, since in post-World War II California, carhops were used to take orders and serve food. According to the company's website, the Snyders had a simple plan that 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 west of the intersection of Grand Avenue and Arrow Highway in Covina, California, three years later. The company remained a relatively small southern California chain until the 1970s. The Snyders managed their first restaurants closely to ensure quality was maintained. The chain had 18 restaurants when Harry Snyder died in 1976 at the age of 63.
In 1976, 24-year-old Rich Snyder 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 20 years, the chain experienced a period of rapid growth under Rich's leadership, expanding to 93 restaurants.
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 were added. However, after opening restaurant No. 83 in Fresno, California, on 15 December 1993, Rich Snyder and four other passengers died in a plane crash on approach to John Wayne Airport in Orange County, California. The charter aircraft they were on had been following a Boeing 757 in for landing, became caught in its wake turbulence, and crashed. The ensuing crash investigation led to the Federal Aviation Administration requirement for an adequate distance between heavy aircraft and following light aircraft to allow wake turbulence to diminish.
Upon Rich Snyder's death in 1993, Guy Snyder assumed the presidency and continued the company's aggressive expansion until he died from an overdose of painkillers in 1999. He was president for six years, expanding In-N-Out from 83 to 140 locations. His mother Esther subsequently took over the presidency.
The 21st century
Locations in Arizona were established in 2000, while other Nevada restaurants were opened in Reno, Sparks, and Carson City in late 2004. In-N-Out became a huge success in these new locations. In 2007, the opening of the first restaurant in Tucson, Arizona, broke company records for most burgers sold in one day along with the most sold in one week.
In 2008, In-N-Out expanded into a fourth state by opening a location in Washington, Utah, a suburb of St. George. By late 2009, the chain expanded into northern Utah with three new locations situated in Draper, American Fork, and Orem. More locations opened in the spring of 2010 in West Valley City, West Jordan, Centerville, and Riverton.
In May 2010, In-N-Out announced plans to expand into Texas, specifically within the Dallas–Fort Worth area with the first two locations opening in Frisco and Allen on 11 May 2011. The chain would later expand in 2013 to the Austin region. As of December 16, 2013, there were 21 restaurant locations in the Dallas–Fort Worth area, and two (with a third under construction) in the Austin area. These new locations in Texas required the company to build a new patty production facility and distribution center in Texas, according to company vice president Carl Van Fleet. In March 2014, the company confirmed its first location in San Antonio.The fall of 2014 saw the restaurant open its 22nd Texas location in Killeen. The company plans to expand to greater Houston in the near future in addition to opening a location in Waco. On November 20, 2014 In-N-Out opened their first location in San Antonio.
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 non-family member to hold the position, although he does have ties to the family. The company's current heiress is Lynsi Snyder, daughter of Guy and only grandchild of Esther and Harry Snyder. Snyder, who was 23 years old and known as Lynsi Martinez at her grandmother's death, owns the company through a trust. She gained control of 50% of the company in 2012 when she turned 30, and will gain full control when she turns 35.
After participating in various roles in the company, Snyder assumed the presidency in 2010, becoming the company's sixth president. However, most major decisions are made by a seven-member executive team. Snyder does not intend to franchise nor sell, and plans to pass on ownership of the company to her two children.
Rich Boyd lawsuit (2006)
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. The company then responded with a lawsuit of its own, alleging Boyd had construction work done on his personal property and charged it to the company, as well as favoring contractors with uncompetitive bids. 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. Ultimately, Boyd was permanently removed from his role as an employee and co-trustee.
Chadder's infringement lawsuit (2007)
In June 2007, the company filed a lawsuit against an American Fork, Utah, restaurant named Chadder's for trademark infringement, claiming that the "look and feel" of the restaurant too closely resembled that of In-N-Out, and that the restaurant violated trademarked menu items, such as "Animal Style", "Protein Style", "Double-Double", and so forth.
The company was tipped off by Utah customers contacting the customer service department asking if In-N-Out opened a location in Utah under a different name or if they had any affiliation with the restaurant in any way. Several customers stated they ordered trademarked items such as Animal and Protein styles.
On 7 June 2007, In-N-Out's general counsel visited the Chadders restaurant in American Fork and "viewed the premises and operations and ordered a meal that was not listed on its menu. He requested an 'Animal style Double-Double with Animal fries,' and his order was filled." Utah District court Judge Ted Stewart issued a temporary restraining order against the look-alike. Chadder's opened another location near the Salt Lake City area and one in Provo.
In 2009, In-N-Out opened a restaurant in American Fork less than a mile from the Chadder's restaurant. Per their website, Chadder's started selling a "Stubby Double" instead of "Double Double". The Chadder's restaurants in Utah have gone out of business since In-N-Out restaurants have opened in Utah.
The In-N-Out menu consists of three burger varieties: hamburger, cheeseburger, and "Double-Double" (two hamburger patties and two slices of 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" (a Thousand Island dressing variant).
There are, however, additional named items not on the menu, but 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. These variations include 3x3 (which has three patties and three slices of cheese), 4x4 (four patties and four slices of cheese), Neapolitan shakes, grilled cheese sandwich (comes with the same ingredients as the burgers except the meat, plus two slices of melted cheese), Protein style (wrap with lettuce; comes with the same ingredients as the burgers except buns), and Animal Style.
Both Protein and Animal Style are house specialties that the company has trademarked because of their association with the chain. Animal Style fries come with two slices of melted cheese, spread, and grilled onions on top.
Animal style burgers are cooked in a thin layer of mustard, and in addition to the lettuce and tomato it also includes pickles, grilled onions, and extra spread. Hot peppers are also available by request.
Until 2004 In-N-Out accommodated burger orders of any size by adding patties at an additional cost. A particularly famous incident involving a 100x100 (100 patties, 100 slices of cheese) occurred in 2004. Once word got out of the incredibly large sandwich, In-N-Out management disallowed anything larger than a 4x4. However, one can order what is called a "Flying Dutchman" which consists of two meat patties and two slices of cheese by itself (no bun, condiments, or vegetables).
Store design and layout
|This section needs additional citations for verification. (August 2012)|
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. These restaurants store food and supplies in a separate building, and it is not uncommon for a driver to be asked to wait a moment while employees carry supplies 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 restaurants. The original Covina restaurant, 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.
Like many chain restaurants, newer In-N-Out restaurants are based on a set of templates or "cookie-cutter" blueprints, which are chosen based on available space and expected traffic levels. While external appearance of its buildings may vary to meet local zoning and architectural requirements, the interior floor plan and decor in most recently constructed In-N-Out restaurants are identical. However, some restaurants are designed to stand out, such as the restaurants at Fisherman's Wharf, San Francisco and Westwood, Los Angeles.
Today's typical location has an interior layout that includes a customer service counter with 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.
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 an "X" in front of the restaurants. This is an allusion to founder Harry Snyder's favorite movie, Stanley Kramer's It's a Mad, Mad, Mad, Mad World, in which the characters look for a hidden treasure and find it under "the big W" made by four palm trees, with the middle two forming an "X".
Like other fast food chains, In-N-Out uses roadside billboards that attract customers to the nearest location. Billboard ads typically display an image of the trademarked Double-Double burger. The chain uses short radio commercials, often limited to the jingle, "In-N-Out, In-N-Out. That's what a hamburger's all about." Television commercials, which are less common, feature the hamburger's visual appeal. In-N-Out seldom uses celebrities in ads, although John Cleese and John Goodman have voiced radio spots. In the past, the Snyders' also sponsored Christmas music programming with voice-overs expressing the meaning of the holiday. Such commercials have caused controversy among some listeners.
In addition to conventional, paid advertising, In-N-Out benefits from positive word of mouth spread by enthusiastic fans. For many years, it gave customers free bumper stickers which simply said "In-N-Out Burger". (Many of these were altered to read "In-N-Out urge"). The company helps devoted customers advertise its brand by selling souvenir clothing with the In-N-Out logo. Celebrity fans and free endorsements in mass media also promote the business. When Heisman Trophy winner and Ohio State quarterback Troy Smith raved about In-N-Out cheeseburgers during a press conference before the 2007 BCS National Championship Game, a senior executive said, "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." Huell Howser was allowed, in what is believed to be a first, to film with his television cameras inside a store for a California's Gold Special. The show also included a behind-the-scenes tour of the In-N-Out Headquarters.
The burger chain has achieved widespread popularity which has led 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.
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. Local business leaders in San Francisco's Fisherman's Wharf district said 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, with one saying locals would ordinarily "be up in arms about a fast-food operation coming to Fisherman's Wharf," but "this is different." California native and Colorado Rockies player Jason Giambi would often visit In-N-Out Burger when on the West Coast with his former team, the New York Yankees. He said he tried to open an In-N-Out Burger restaurant in New York, but was unsuccessful.
The chain also has fans in a number of renowned chefs including Gordon Ramsay, Thomas Keller, Julia Child, Anthony Bourdain, and Mario Batali. Famous London chef/restaurateur Gordon Ramsay ate In-N-Out for the first time when taping Hell's Kitchen in Los Angeles, and it soon became one of his favorite spots for take-out. Ramsay was quoted, saying about the experience: "In-N-Out burgers were extraordinary. I was so bad, I sat in the restaurant, had my double cheeseburger then minutes later I drove back round and got the same thing again to take away." Thomas Keller, a fan of In-N-out, celebrated with In-N-Out burgers at the anniversary party of his restaurant, The French Laundry. Keller also plans on opening his own burger restaurant inspired by his Los Angeles experience of In-N-Out. Julia Child, one of the first celebrity champions on the chain, admitted to knowing every location of the restaurant between Santa Barbara and San Francisco. Child also had the burgers delivered to her during a hospital stay. Anthony Bourdain reportedly said that In-N-Out was his favorite fast food meal; later naming the restaurant as "the best restaurant in Los Angeles." In-N-Out was one of the very few restaurant chains given a positive mention in the book Fast Food Nation. The book commended the chain for using natural and fresh ingredients and for looking after the interests of employees regarding pay and benefits. An In-N-Out food truck catered Vanity Fair's 2012 Academy Awards after party.
Jack Schmidt was the first person commissioned to paint the original In-N-Out located in Baldwin Park, CA for In-N-Out Burger Inc. His paintings were later reproduced on advertisements, shirts, and other consumer products. His paintings capture the car culture, beautiful weather, and the easy-speed of In-N-Out Burger The art pieces illustrate the beautiful climate that is associated with Southern California. Beautiful sunsets, sunny blue skies, and towering palm trees are always present.
In-N-Out prints discreet references to Bible verses on their paper containers. These consist of the book, chapter, and number of the verse, not the text of the passage, in small print on an inconspicuous area of the item. The practice began in the 1980s during Rich Snyder's presidency, a reflection of the Christian 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 replicas
- 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."
- Employee paychecks
- Matthew 6:19—"Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal."
- 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 (no longer in use for customers, they are now used by employees only)
- 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."
- License plate keychain
- 1 Corinthians 13:13—"And now these three remain: faith, hope and love. But the greatest of these is love."
- Fry Boat
- Proverbs 24:16—"For though a righteous man falls seven times, he rises again, but the wicked are brought down by calamity."
The In-N-Out Burgers Foundation
The In-N-Out Burgers Foundation, was established as a 501(c)(3) nonprofit organization in March 1995, and classified as a "Human Services: Fund Raising & Fund Distribution" organization under the NTEE system. Based in Irvine, California, the foundation "supports organizations that provide residential treatment, emergency shelter, foster care, and early intervention for children in need." Its grant-making activities are restricted to eligible nonprofit groups that are located or provide services in areas where In-N-Out has a presence. Consequently, grant proposals are only accepted from applicants in a limited number of counties in Arizona, California, Nevada, Utah, Texas, . In 2010, the most recent year for which financial reporting is publicly available (and before the opening of the company's Texas locations), the foundation contributed $1,545,250 to 231 grantees in Arizona, California, Nevada, Utah. Grant-making is funded through donor contributions and In-N-Out-sponsored fundraisers; typical grants are between $2,000 and $20,000.
The first In-N-Out restaurant that opened in 1948 was demolished when the Interstate 10 (then U.S. 60/70/99, the Pomona Freeway) San Bernardino Freeway was built from downtown Los Angeles to the San Gabriel Valley. The freeway runs over the original location. A new restaurant was completed in 1954 near the original Baldwin Park, California location, but was closed in November 2004 and demolished on 16 April 2011 despite discussions about using it as an In-N-Out museum chronicling the origins and history of the company. In-N-Out built a replacement restaurant on the other side of the freeway next to the original In-N-Out University (opened in 1984). A new In-N-Out University was built on the property. The University building houses the training department, which was moved from Irvine, California. In addition, the company restaurant was moved from In-N-Out's Baldwin Park headquarters to the new lot, which holds the restaurant and university, less than a thousand feet away. A replica of the 1948 In-N-Out is being built where the 1954 replacement was torn down.[when?]
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