In-N-Out Burger

In-N-Out Burger

Company 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 Ken Iriart, VP of Human Resources Carl Van Fleet, VP of Planning Keith Brazeau, VP of Quality Control
Revenue	estimated US$ 360 million (2006)
Website	www.in-n-out.com

File:Ucirvineuniversitytower.jpg

In-N-Out headquarters at University Tower in Irvine

In-N-Out Burger is a privately owned and operated fast-food restaurant chain in the Western United States. Founded in 1948 by Harry Snyder and his wife Esther Snyder, and headquartered in Irvine, California, In-N-Out Burger has since expanded to Arizona, Nevada, and southern Utah.

The restaurant chain has developed a loyal customer base 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 wages – starting at $10 per hour in California, as of January 2008.

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. It was almost three years before a second location was opened in the San Gabriel Valley. At the time of Harry's death in 1975, the company had expanded to 18 stores, all located in Southern California. Rich Snyder became the company president. From 1976 until his death in 1993 they grew to 93 stores.

In 1984, the company established In-N-Out University, located directly adjacent to the original Baldwin Park restaurant, for the purpose of training its management-level employees in a "real world" setting. As the university was a full service restaurant, its operations were similar to that of any other In-N-Out restaurant and to the casual observer it was like any of the others except for its larger size (floor area). In 2004 the original university was demolished and a new, "state of the art training facility" along with a new restaurant with a 75-seat indoor dining area was constructed. After its completion, the original location was closed. The original kitchen is planned to be preserved as part of an upcoming In-N-Out Museum.

On December 15 1993, In-N-Out's president, Rich Snyder, son of the founders, 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. Snyder was aboard a charter plane. The charter aircraft followed in a Boeing 757 for landing, became caught in its wake turbulence, rolled into a deep descent and crashed near the intersection of State Route 55 and Edinger Avenue. The crash investigation led to the FAA requirement for an adequate period between heavy aircraft and following light aircraft to allow wake turbulence to diminish. As a result of this crash Rich's brother, Guy, assumed the presidency.

In 1992, In-N-Out opened its first non-Southern California restaurants in Las Vegas (one at Tropicana Avenue west of Interstate 15 and the other on Nellis Boulevard just north of Charleston Boulevard). Expansion then began into Northern California, including one location in San Francisco, at Fisherman's Wharf, and with additional Las Vegas-area restaurants opening. By 2000, locations in Arizona were established. In-N-Out opened other Nevada restaurants in Reno, Sparks, and Carson City in fall of 2004. In 2007, the opening of the first store in Tucson broke company records for most burgers sold in a day and in a week.

In June 2007, In-N-Out 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 the In-N-Out style and that the restaurant was serving menu items, such as "Animal Fries", with trademarked names. A judge issued a temporary restraining order against the look-alike, but the issue has yet to be definitively resolved. The company expanded into Utah in 2008. A judge issued a temporary restraining order against the look-alike, but the issue has yet to be definitively resolved. The company expanded into Utah in 2008. The company expedited construction of its first Utah location in the town of Washington, in response to the Facebook group, "Official IN-N-OUT Market Survey: Provo, Utah," started by Brigham Young University student Branden Espinoza in early 2007. Within a month after going live, the group had 2,500 members who sent hundreds of emails to company headquarters requesting expansion into Utah. The user base now reports rumors of a land purchase by In-N-Out in American Fork.

In 1999, Guy died of an overdose of Vicodin. Esther Snyder, the matriarch of the founding family, subsequently held the presidency until she died August 4, 2006 at the age of 86. The company's 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 the following 12 years. Mark Taylor, former Vice President of Operations and brother-in-law to Lynsi Martinez, became the company's fifth president.

Foodborne illness lawsuit in 2003

In 2003, the Marler Clark law firm of Seattle filed a lawsuit against In-N-Out Burger on behalf of the mother of a young girl who allegedly contracted an E. coli O157:H7 infection in 2001 from eating at the In-N-Out Burger in Kettleman City, California. The girl survived but suffered kidney damage according to the lawsuit. Reportedly, the chain toasted its hamburger buns on the same grill where the meat was cooked. The suit was settled in April 2003 on undisclosed terms. [1]

Turbulence in 2006

On January 5, 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 sole heir Lynsi Martinez and allied corporate executives of trying to force out Esther Snyder and attempting to fire Boyd unreasonably. Pre-empting the suit, Martinez and Snyder appeared in a special December video message to employees with Operations VP Mark Taylor telling employees not to believe everything they hear.

The company responded with a lawsuit of its own alleging that Boyd had construction work done on his property and charged it to the company, as well as favoring contractors with uncompetitive bids. This escalated into a defamation lawsuit against accounting firm Grant Thornton and its employee Lawrence A. Rosipalja over alleged intimidating and misleading statements made to In-N-Out employees about the corporate dispute. Boyd was suspended from his role as co-trustee of 65% of the company stock and Northern Trust Bank of California took Boyd's place as co-trustee until a hearing on May 10, 2006.

In April the judge dismissed two of In-N-Out's claims against Boyd. A trial date of October 17, 2006 was set. This trial never occurred, as a settlement was reached in early May. Most terms were private under a confidentiality agreement between all parties. Boyd was permanently removed from his role as an employee and co-trustee.

Advertisement

The In-N-Out model is in stark contrast to its traditional rival, McDonald's. This is reflected in In-N-Out advertising, which focuses on the food, compared to McDonalds' ads which promote the "experience". Other major competitors include Carl's Jr., Burger King, Dairy Queen and A&W, but none have inspired the customer loyalty of In-N-Out.

All locations are company-owned. The privately-owned corporation does not currently plan to franchise or to take the company public.

The original In-N-Out in Baldwin Park, California only provided a basic menu for its customers. In-N-Out still has a limited menu consisting of only three different sandwiches: hamburger, cheeseburger, and "Double Double" (double meat/double cheese); as well as french fries, three flavors of milkshakes, sodas and other drinks. There are additional named items that are not on the posted menu, but these are all serving variations of items on the limited menu. The names of these variations reside on the chain's "secret menu," which is not a secret at all and is accessible on the company's web site.

The items on the "secret menu" include:

• Animal Style (Burger or Fries): The fries are topped with 2 slices of melted cheese, spread, and grilled onions. The burgers are cooked using mustard, and are then topped with pickles, extra spread, and grilled onions.
• Grilled Cheese: Everything that the cheeseburger includes, minus the meat patty. Can be ordered with or without onions as well as "animal style" or "protein style".
• Protein Style: Any burger that is offered on the menu will be wrapped in lettuce rather than using a bun.
• M x C (3x3, 4x4): "M" meaning number of meat patties and "C" meaning number of cheese slices. Therefore, the 3x3 is three meat patties and three slices of cheese. The 4x4 is four meat patties and four slices of cheese. There is a recorded serving of a 27x27. However, a relatively new corporate policy dictates the maximum size an In-N-Out location is to prepare is 4x4. The stated reason for this new restriction is simply that burgers larger than 4 patties and 4 slices of cheese are not "visually appealing."
• Double Meat: Simply the Double Double without cheese.
• Veggie Burger: A burger without meat or cheese- only vegetables are used.
• The Flying Dutchman: Two meat patties and two slices of cheese. No bun, vegetables, or spread are included.
• Well Done Fries: Fries are cooked longer than others, resulting in a crispy fry.
• Light Fries: Fries are not cooked as long, resulting in a softer fry.
• Neopoliton Milkshake: Combination of chocolate, vanilla, and strawberry shakes.

See also: In-N-Out Burger menu items

Store operations

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

Many In-N-Out stores are based on one of a set of templates or "cookie-cutter" blueprints (chosen based on available space and expected traffic levels) that have changed over the years. Other 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 in San Francisco, the restaurant in Westwood in Los Angeles and the restaurant in Valencia. The typical location's interior layout includes the following:

• customer service counter with several computers and registers
• indoor dining room (benches and fixed chairs)
• kitchen (called the stand)
• food preparation area (where tomatoes, onions, etc. are processed)
• storage areas for the paper goods (napkins, bags, etc.)
• storage areas for the "dry" food goods (potatoes, buns, etc.)
• walk-in refrigerator (no freezers) for the perishable goods (lettuce, cheese, spread etc.)
• A separate meat refrigerator for the patties
• mechanical/electrical rooms
• restrooms
• employee locker rooms

The typical exterior layout includes the following:

• one or two drive-through lanes with corresponding service windows
• outdoor dining area (tables and benches, and overhead canopies)

Variations of this layout exist depending on the age of the restaurant, physical lot size, city zoning ordinances, and the restaurant's relationship to neighboring structures or its proximity to the street.

All of the designs encourage customers to watch the food being prepared. In-N-Out's success is based on the quality of the food. They proudly show that the fries start as whole clean potatoes only minutes before, that the lettuce is hand-leafed rather than sliced, the burgers and buns are grilled together, and everything comes together to be served without the use of heatlamps or microwave re-heaters.

As a result of a larger restaurant site, newer restaurants include an indoor dining area in addition to the outdoor dining area. Conversely, because of the greater ability to serve 'dine-in' customers, these stores have only one drive-through lane. Because the kitchen is larger, there are generally multiple registers, two or three grills, larger countertops, multiple fryers, etc. Depending on the location, and particularly if it is in a heavily developed or densely built area, a few locations with indoor dining areas do not have drive-throughs.

The In-N-Out located in Barstow, California, is fitted with four grills and ten fryers, queue, and cavernous dining room. The majority of this location's business is a result of those traveling between Southern California and Las Vegas on Interstate 15, putting Barstow at the middle of a long trip. It is common for the restaurant to be highly busy during the day; the announced order numbers will cycle past 100 between the time a customer joins the line and finishes their meal. Many customers are long haul truck drivers who walk as far as a mile from the truck stops where their big rigs are parked.

The signature colors for In-N-Out are white, red, and yellow. The white is used for the buildings' exterior walls and the employees' (associates') basic uniform. Red is used for the buildings' roofs and associates' aprons and hats. Yellow is used for the decorative band on the roof. Variations in the application of the colors on the building will occur depending on the architecture of each restaurant.

The first few In-N-Outs (such as those in Pasadena, Baldwin Park, Covina, and Azusa) 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. This feature made In-N-Out very popular with law enforcement and emergency services personnel, avoiding the possibility of being trapped in line when a radio call came through. The customers in cars waiting in line have a clear view of the kitchen interior through large windows. Storage of food and supplies is in a separate building, which is connected to the kitchen only by sharing the roof, so it is common for a driver to be asked to wait a moment, while workers carry replenishments to the kitchen across the rear lane.

Due to their size, the kitchens at these classic stores are limited to a single customer service register, one cooktop grill, a countertop, two sets of fryers (for the french fries) with two fry baskets each, one set of soda and shake dispensers, a sink, and a "spinner" that is used to centrifugally remove excess water from the freshly diced potatoes.

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 only a few hundred feet away, but staffers at the new location frequently hear nostalgic references to the original. 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.

In-N-Out also offers a cookout trailer that can be hired for private or corporate events. This trailer offers hamburgers, cheeseburgers, double-doubles, grilled cheese, 21 oz. fountain drinks, and potato chips (instead of fries). A hot oil vat is unsafe in a moving vehicle, hence the potato chips. Trailers are occasionally used at grand openings to lessen the store's load.

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

A subtle element of the franchise is the frequent appearance of crossing palm trees in front of many 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'. This is also in keeping with In-N-Out's traditional palm tree logo, which reflects the Snyder family's Christian beliefs as well as the chain's Southern California roots.

Corporate culture

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

In-N-Out pays its employees significantly more than the federally mandated minimum wage of $5.85 per hour and California's minimum wage of $8.00 per hour — currently starting pay is a minimum of $10.00 per hour. For its full-time associates, the company offers complete employee benefits, and provides 'fringe' benefits in the form of annual company picnic, gifts at Christmas, the opportunity to participate in a variety of other company-sponsored activities, as well as paid holidays and paid vacations. According to the company's website, on average, each of their 215+ store managers earn just under $100,000 annually, and have been with the company for 13 years. The restaurants are closed on Christmas, Thanksgiving, and Easter. It is one of the few chains to receive a positive mention in the book Fast Food Nation.

In-N-Out is active in the communities it serves. Every year the company provides free burgers to participants marching in the Rose Parade, provides cans for donations, matches customer donations 3-to-1 (up to $200,000) in April for National Child Abuse Prevention Month, and underwrites various fundraisers to support local charities and non-profit organizations.

Advertising

A company motto of "Quality you can taste".

In-N-Out generally relies on positive 'word of mouth' for its advertising. Television advertisements are sporadic; for the most part, when the ads do appear, the hamburger, or product, is the focus of the commercial. In-N-Out rarely relies on spokespersons or actors for its commercials, although at one time John Cleese and John Goodman voiced radio spots. Radio advertisements are equally rare and are generally limited to the characteristic jingle: "In-N-Out, In-N-Out. That's what a hamburger's all about." In the past the Snyders have sponsored Christmas music programming and given voiceovers expressing the meaning of the holiday. In addition to the jingle, there are several In-N-Out slogans including: "Quality You Can Taste" and "Cleanliness You Can See".

In-N-Out uses billboards strategically located on roads leading to individual restaurants, such as "2.5 miles ahead", and the board will have a large replica of a Double-Double on it. At one time, some of the billboards released "steam", making the hamburgers appear hot.

In-N-Out's use of the occasional radio spot and billboard, simultaneously echoing the sequential billboard ads of the 1950s and apprising West-Coasters traveling through spacious California that a precious In-N-Out is nearby — an oasis in the wilderness — may be the ideal campaign for an establishment that wants to both evoke the burger joints of the 1950s and has almost no need whatsoever for advertising due to the continually immense demand for In-N-Out burgers.

The business enjoyed a free endorsement 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. The company was delighted, Executive Vice President Carl Van Fleet being quoted, "It doesn't get much better than that for us, we're kind of a small company, and we don't have any celebrity endorsers. But I think we just got the best one we could have."[2]

Popularity

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

The burger chain, with its reputation for adhering to the notions that fast food should be made from scratch, has achieved widespread popularity and, in areas that it serves, has become favorite among celebrities (an early example being Bob Hope). Vanity Fair has even served In-N-Out burgers at its post-Oscars parties. Angelina Jolie confessed that she left the 2003 Academy Awards ceremony early, and, dressed in her glamorous outfit, stopped at an In-N-Out on the way home. Steve Carell has said that he always goes to In-N-Out after every awards show and movie premiere. Actor Tom Cruise is also known to be a big In-N-Out fan to such an extent that most of his films will often have the company's van providing unofficial craft services. Paris Hilton, spokesperson for Hardee's and Carl's Jr. in 2005, was arrested for DUI in 2006 claiming, "I was just really hungry, and wanted to have an In-N-Out Burger."

The chain has also become an anti-corporate alternative to fast food restaurants such as McDonald's (which was founded the same year as In-N-Out in nearby San Bernardino). When the location at San Francisco's Fisherman's Wharf 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.

Even the opening of a new In-N-Out location 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.

In 1999, after Sergeant Andrew Ramirez, who had been a POW for a month in Serbia, was released, his first request was for a Double-Double. (His mother got one to him.)

In-N-Out has even inspired famous chef Thomas Keller (owner of the French Laundry), a fan of the chain, to open a hamburger restaurant. He was quoted as saying in an interview with Powell.com: "But once in a while you might see me at In and Out Burger; they make the best fast food hamburgers around."

In the cult classic "The Big Lebowski", the characters make a stop at an In-N-Out Burger in North Hollywood

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, 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, or "R-9's"

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."

• Company letterhead paper

"God Bless America" * The Customer is Everything to Us

See also

• Zip's Drive In
• Arctic Circle Restaurants

Further reading

• Hawn, Carleen (2006-08-07). "In-N-Out Burger is giving McDonald's a run for its money".

External links

• In-N-Out Burger
• Yahoo! - In-N-Out Burgers, Inc. Company Profile