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IN-N-OUT BURGER

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Garrett Johns

on 15 April 2015

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Transcript of IN-N-OUT BURGER

BY GARRETT JOHNS
IN-N-OUT was Founded in 1948 by Harry and Esther Snyder in Baldwin Park, CA.

Harry was accredited with inventing the two-way speaker box for drive through ordering.

In 1963 a production plant was opened to control quality of the meat going into the restaurant.

Harry Snyder's died in 1976. At that time were only 18 drive-thru locations in California.
First Generation
They don't treat workers like they are disposable

Refer to workers as associates rather than employees

Pay $10.50 per/hr to all associates

Full time employees receive many benefits
Value Associates
Social Responsibility
Swot Analysis
Since 1984, In-N-Out Burger has been helping abused children.

The foundation was established in March 1995 as a nonprofit foundation. The Foundation’s purpose is to assist children who have been victims of child abuse, and to prevent others from suffering a similar fate. The Foundation is to directly help abused and neglected children. In-N-Out pays all costs associated with the Foundation so that every penny raised goes directly to the children.
Quality Control
First distribution plant built in California in 1963
Second plant was built in TX in 2013
Private butchers, warehouses, truck lines


IN-N-OUT BURGER is currently in only in five states California, Nevada, Arizona, Utah, and Texas.

Monthly random inspections to each store.
Strengths
Location
Simple Menu
Freshness
Loyal Customers
Cleanliness
Employee centered policies
Affordable with good quality

Current Standings

Headquarters is in Irvine, California and owned by Snyder's granddaughter.

Currently employes 18,000 and has 300 locations.

In-N-Out prints discrete Bible verses on its paper containers.
In-N-Out University
In-N-Out University was set up to train associates to become future managers.

Reinforces company vales of friendliness, cleanliness, consistency, and quality.

80% of mangers worked their way up from associates.


How many of you have heard about IN-N-OUT BURGER?


How many of you have seen or heard an IN-N-OUT BURGER advertisement? (radio,social media, TV)


How many of you have actually had a burger from In-N-Out?
CLASS DISCUSSION
Weakness

Competitively, limited menu items
Limited number of branches in US
Limited menu choices
Opportunity
Add new items to the menu
Expansion of branches on national level
Franchising
Advertise the brand aggressively through various channels

Treats

competition from other local and international players
Health consciousness amongst people
Volatility in price of raw materials
MISSION STATEMENT
1: Providing the freshest, highest quality foods and services for a profit and a spotless, sparkling environment whereby the customer is our most important asset.

2: Providing a team oriented atmosphere whereby goal setting and communication exist and to provide excellent training and development for all of our associates.

3: Assisting all community's in our market place to become stronger, better and safer places to live.
Rich Snyder Harry's son took over as President in 1976, and with Guy Snyder's help established a commissary at Baldwin Park.

Rich then opened In-N-Out University in 1984 to train his employees


While Rich was President, In-N-Out grew from those 18 locations in 1976 to 93 locations at the time of his death in 1993.

After Rich's death Guy Snyder became Chairman of the Board and CEO in 1993.

Guy Snyder led In-N-Out into the future with continued expansion throughout California, Nevada and Arizona. While Guy was Chairman of the Board, In-N-Out grew from 93 locations to 140 at the time of his death in 1999


Second Generation
Esther -- Harry’s widow -- maintained control of the company until her death in 2006 at age 86

After Esther's death her only granddaughter, Lynsi Torres, was given control of the company

She now controls the company through a trust that gave her half ownership when she turned 30

Full control when she turns 35

The company has no other owners

Lynsi opened In-N-Out's second distribution center in Dallas, TX.
THIRD GENERATION
Adverting Strategy
RECOMMENDATIONS
CLASS DISCUSSION

Why do you think In-N-Out burger became so successful with such little advertisements?


Why do you think The Company Store was such a successful means of advertisement?
In 1948 Billboards were the main advertisement

Radio jingle was created in 1949 "IN N OUT, IN N OUT THAT WHAT A HAMBURGER IS ALL ABOUT" still current

In 1975 the first T-Shirt was made in memorial of Harry Snyder

Late 70's bumper stickers were made

In 1981 the first TV commercial aired

In 1988 the last TV commercial aired

In 1989 The Company Store was opened

Word of mouth is still there biggest advertisement

Build a Distribution center in Virginia

Virginia allows the company to open up restaurants traveling as far up to Massachusetts, as far down to Georgia and as far west to Tennessee

Social Media out-cry supports decision

Advertisements would begin with TV commercials on the east coast grabbing attention of existing supporters

Facebook, Twitter, Internet, and In-N-Outs website will see an increase on activity.

Radio Ad was play IN-N-OUT original jingle "N-N-OUT,N-N-OUT, that's what a hamburger is all about"






CLASS DISCUSSION
If IN-N-OUT were to successfully expand to the east coast how many of you would try them?
CLASS DISCUSSION
All three generations of IN-N-Out burger became CEO's before the age of 30. Do you think their young age was an advantage or disadvantage?
Full transcript