In-N-Out isn’t your typical burger joint, and it insists expanding its footprint won’t change that.
For nearly eight decades, the West Coast restaurant chain has remained a privately owned, family-owned business that has cultivated extremely loyal customers and a quirky identity despite being located in only a handful of states. But recently, the phenomenon has grown and will soon extend to Tennessee.
Since Lynsi Snyder took over as president of the California-based company in 2010, it has nearly doubled in size, from 230 stores in four states to 402 in eight. In-N-Out Burger is opening in Washington, its ninth state, followed by New Mexico and Tennessee.
Snyder said she remains cautious about expanding too much or too quickly and remains focused on keeping prices lower than competitors. Even before taking the reins, she said she “felt such an obligation to look out for our client.” When everyone was doing these jumps, we weren’t doing it.
That could be an advantage as the burger wars adjust to an economy that continues to experience a historic inflation crisis.
Some major fast-food franchises reported disappointing sales late last year, as many diners moved away from the drive-thru to seek better value in grocery store aisles. In February, Wendy’s rushed to “clarify” its plans to implement “dynamic pricing” after customers complained it would mean more expensive burgers and fries during busier times.
At In-N-Out, a Double Double — two beef patties with two slices of cheese — sells for $5.90 to $6.05 in California, the company said.
Unlike In-N-Out, the largest fast food competitors are franchised, allowing individual store operators to set their own prices, which can often be higher for similarly sized sandwiches. When NBC News recently placed online pickup orders at the closest McDonald’s, Wendy’s and Burger King locations to the same central Los Angeles address, a Big Mac cost $6.59, a Dave’s Single $6.29 and a Whopper $6.49, respectively.
In-N-Out still uses many of the same wholesalers that Snyder’s grandfather used in the 1940s and ’50s, she said. This is one of the reasons the company has grown so deliberately; Expanding into a new region may require establishing new relationships with untested suppliers, potentially compromising quality, price, or both.
The company is not going against industry trends with its growth plans. Large quick-service restaurants are also growing, with McDonald’s, Chicago sandwich chain Portillo’s and others seeking sales growth by changing their geographic footprint. But while some big brands are targeting the Sun Belt, where the populations of several states and cities have increased since the pandemic, Snyder said In-N-Out is keeping its center of gravity on the West Coast.
That could pose some business challenges, particularly in California, where restaurateurs say a new minimum wage for fast-food workers makes it harder to keep menu items affordable. The requirements, which took effect this month, mean companies with at least 60 national locations must pay their workers at least $20 an hour. Some responded by reducing their workforce in the state and warning that they would pass on higher labor costs to restaurants.
However, In-N-Out was already paying its associates between $20 and $21 an hour. Since the mandatory hike, the company said it has increased that range from $23 to $24.
“We want them to go the extra mile to take care of our customers, so we want to pay them well,” Snyder said. “I’ll take care of them.”
Still, In-N-Out Burger joined a restaurant industry coalition that opposed California’s wage law. The company contributed more than $12.8 million to Save Local Restaurants, a group that sought to overturn the fast-food minimum wage, according to information filed by the company with state authorities. The effort, however, was mooted after the restaurant industry negotiated a deal with union leaders last fall, paving the way for the wage increase to take effect.
Snyder declined to comment on the campaign against the wage bill. A company spokesperson said: “In-N-Out Burger is proud to offer all of our associates competitive salaries, bonuses for managers and consideration for promotion within the organization for qualified associates. »
Snyder’s grandparents founded In-N-Out Burger in 1948 as a small stand with a pioneering drive-thru speaker system in what was then the rural suburbs of Los Angeles. The company grew regionally in the decades that followed, but when Lynsi was 17, a series of family tragedies had left In-N-Out without Snyder at the helm. She started at the company working the register at a new location in Redding, California, and rose through the ranks of various departments, including meat and merchandising, before taking control a decade later .
“There can be a stigma associated with being the child of the owner,” Snyder said. “I think wanting to be respected, doing things the right way and not having that special treatment was where I had in mind.”
She credits the experience with helping her gain the confidence to do things her own way — like proudly displaying Bible verses on In-N-Out packaging or letting certain technology trends slide. For example, she said “no to mobile ordering,” “because it has a huge impact on the customer service experience.”
“There are a lot of things that could be cheaper, easier, but that’s not the system we’re using,” Snyder said.
She expects the company to remain private, adding that it has turned away many potential buyers. Franchise? That won’t happen either. Snyder said she wants the family legacy to continue, especially now that her oldest son has gotten into the business.
“Just seeing him in his uniform, it’s hard not to get a little emotional and wish my dad or my uncle could see him,” she said.
And despite plans to expand east, she said hungry New Yorkers shouldn’t wait for an In-N-Out in Times Square.
When asked if the East Coast was on the table, Snyder said, “As long as I’m here, I probably say never.”
This article was originally published on NBCNews.com
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