The Wolf of Franchises 🍟
The Wolf of Franchises 🍟

@franchisewolf

21 Tweets 13 reads Jul 10, 2022
In-N-Out Burger has a cult following unmatched by any other brand.
New restaurant openings create 14+ hour lines that require cops to manage the overflowing traffic.
Here's their "secret" sauce to an obsessive customer base 🧡
Relative to other big burger chains or franchises, In-N-Out has far less locations:
β€’ In-N-Out: 380+ units
β€’ Five Guys: 1,675+ units
β€’ Whataburger: 830+ units
β€’ McDonald's: 40,000+ units
But when it comes to the average revenue per location, In-N-Out leads the pack with a reported ~$4.5 million.
Compare that to:
β€’ Culvers: $3.06M
β€’ Wendys': $2.1M
β€’ Five Guys: $1.2M
β€’ McDonald's: $2.9M
β€’ Whataburger: $3.1M
When a new In-N-Out opens, CHAOS ensues.
Not only do they fly out all-star employees to manage the madness, they also hire off duty cops for traffic control.
Tweets from the grand opening in Colorado says it all.
To understand how it came to this, let's go back to the start..
The first In-N-Out opened in just a ~10 ft space in 1948 in Baldwin, California.
Founded by Harry and Esther Snyder, the couple hand-picked fresh ingredients each morning.
Their approach to growth was simple - maintain quality at ALL costs.
Today In-N-Out is run by the 3rd generation, Lynsi Snyder, who's been at the helm since 2010.
Their path to success is a story of consistency -
In-N-Out has *barely* changed since Lynsi's grandparents founded it in 1948.
This is evident in 3 key areas πŸ‘‡
1. MENU SIMPLICITY
Since inception 70+ years ago, only 5 items have been added to In-N-Out's 15 item menu:
β€’ Lemonade
β€’ Dr. Pepper
β€’ Milkshakes
β€’ Hot chocolate
β€’ The famous "Double-Double"
Meanwhile, fast food brands like McDonald's & Burger King have 50+ options.
2. COMMITMENT TO QUALITY
To ensure freshness, In-N-Out will never open a location more than a day's drive from 1 of their 6 meat processing facilities.
Meat gets delivered daily to every store, none of which have a SINGLE heat lamp, microwave, or freezer on site.
Lettuce is "hand-leafed", buns are made with slow-rising dough, & the tomatoes + onions are sliced each morning.
A former employee was quoted saying:
β€œI can say without a doubt that it’s the cleanest, freshest, fast food you can ever have”
3. COMMITMENT TO EMPLOYEES
In-N-Out provides far better benefits than your typical QSR.
All full + part time employees receive 401k's, dental/vision coverage, & PTO.
Entry level workers make above minimum wage, and managers can earn over $250,000 for overseeing 1 location!
Unsurprisingly, In-N-Out's benefits resonate well with employees:
β€’ Manger's average tenure is 17 years
β€’ CEO Lynsi Snyder had a 96% approval rating on Glassdoor in 2021 from 26K+ employees
That makes her the highest employee-rated female CEO in the country.
Many businesses focus on adding more revenue streams, expanding aggressively, etc.
But In-N-Out is the ultimate example of "if it ain't broke, don't fix it".
The formula isn't sexy: it's quality X relentless consistency, and it values principles over profits.
To put their growth into perspective:
On average, In-N-Out has opened just 5 restaurants per year since 1948.
Meanwhile, Subway at it's peak was opening 7 locations PER DAY!
The family receives buyout or IPO offers on a monthly basis, but their answer has always been 'no'.
Rich Snyder, son of Harry & Esther, said in 1989:
"There's money to be made by doing those things, but I don’t want to lose what I was raised with all my life.”
CEO Lynsi won't need extra funds anyways.
Her net worth is ~$4.2B, as she owns almost all of In-N-Out after receiving equity on her 25th, 30th & 35th birthday.
Perhaps the Snyders are onto something when they say "doing things the old-fashioned way is the freshest idea of all”.
If you enjoyed this thread, I write about franchises (+ In-N-Out πŸ˜‰) & the entrepreneurs behind them.
Give me @franchisewolf a follow to catch them in your feed.
And feel free to like & retweet this story to share it with others!
Sources:
youtube.com
youtube.com
forbes.com
#in-n-out-heiress-and-company-president-lynsi-snyder-started-out-by-working-in-the-kitchen-of-an-in-n-out-restaurant-7" target="_blank" rel="noopener" onclick="event.stopPropagation()">insider.com
in-n-out.com
TLDR:
βœ… Founded in 1948 by Harry & Esther Snyder
βœ… Now in the 3rd generation of leadership, they've expanded without compromising quality
βœ… In-N-Out is in 7 states today and chaos ensues with every new opening they have
βœ… They have the highest AUV of any burger brand
P.S.
If you're not a big In-N-Out fan, be careful about saying it in front of a diehard πŸ‘€
Random find: Andrew Garfield after the Oscars was very happy with his In N' Out
Another celeb In-N-Out customer:
Adele tweeted this after a shaky performance at the Grammy's in 2016 πŸ˜‚

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