{"id":3658,"date":"2015-12-08T20:16:13","date_gmt":"2015-12-09T01:16:13","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/in-n-out-burger-simplicity-is-the-ultimate-sophistication\/"},"modified":"2015-12-08T20:16:13","modified_gmt":"2015-12-09T01:16:13","slug":"in-n-out-burger-simplicity-is-the-ultimate-sophistication","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/in-n-out-burger-simplicity-is-the-ultimate-sophistication\/","title":{"rendered":"In-N-Out Burger: \u201cSimplicity is the ultimate sophistication\u201d"},"content":{"rendered":"

The Business<\/strong><\/p>\n

In 1948, Harry Snyder founded In-N-Out Burger \u2013 California\u2019s first drive-thru burger stand \u2013 on a ten-square-foot parcel of land in Baldwin Park.\u00a0 Its mission, unchanged over nearly seven decades, is simple:<\/p>\n

Serve only the highest quality product, prepare it in a clean and sparkling environment, and serve it in a warm and friendly manner.<\/em><\/p>\n

Since its inception, In-N-Out Burger has enjoyed tremendous success, growing annual sales to approximately $400mm per analyst estimates and consistently earning a #1 ranking in the fast food burger chain segment, ahead of competitors such as Wendy\u2019s, Five Guys\u2019 and Fuddruckers.\u00a0 With 310 stores currently in operation across the Western U.S. and Texas, the family-run business maintains a loyal consumer base and cult following.\u00a0 Dedicated patrons are known to drive hours for a renowned hamburger or prioritize a stop at In-N-Out during trips to the west coast.<\/p>\n

Operating Model to Deliver Mission<\/strong><\/p>\n

As stated on the restaurant\u2019s website, \u201cWe only serve burgers, fries and drinks, making a high-quality hamburger patty is everything to us\u201d.\u00a0 This relentless focus on simplicity and quality manifests itself in a variety of ways through the firm\u2019s business and operating models.<\/p>\n

Selective Expansion and Franchise Policy<\/u><\/p>\n

To the vexation of many east coast residents, In-N-Out employs a selective expansion policy, choosing only locations where the company can deliver fresh ingredients.\u00a0 Specifically, corporate policy mandates that all locations must be within 300 miles of the company’s distribution facilities.<\/p>\n

The firm owns and operates its patty-making facilities in California and Texas, delivering fresh ingredients to its stores daily.\u00a0 Complete vertical integration and control of the supply chain from start to finish minimizes cost and, coupled with a strict no-franchise policy, ensures consistency in food quality and customer experience across locations.<\/p>\n

\"Locations\"<\/a><\/p>\n

Store Operations and Menu<\/u><\/p>\n

At In-N-Out, burgers are made-to-order and, with a constant supply of fresh ingredients, there is no need for heat lamps, freezers or microwaves.\u00a0 Milkshakes are made with real milk; french-fries are cut in-store using whole potatoes shipped from the farm.\u00a0 To warrant compliance with these standards and incentivize proper management, internal inspectors make frequent surprise visits to restaurant locations.<\/p>\n

The menu itself is a prime example of In-N-Out\u2019s intense focus on simplicity to maximize quality and minimize expenses.\u00a0 Items on the menu are largely unchanged from the original stand and exhibit a rare marriage of quality and affordability:<\/p>\n