The Secret Sauce of In-N-Out Burger: 5 Lessons from an Icon

Recently, I finished reading Lynsi Snyder's book The Ins-N-Outs of In-N-Out Burger," the inside story of how the chain became a beloved cultural icon. As the president and owner of In-N-Out and the granddaughter of the founders, she offers unique insights into the brand.

In-N-Out Burger is world-famous, boasting legions of die-hard fans, including the late Anthony Bourdain and Warren Buffett. When a new store opens, lines of cars stretch around the block for weeks, if not months. No other restaurant or retailer—except maybe Apple—enjoys the same level of consumer love and loyalty as In-N-Out.

From Lynsi's book, I pulled five simple lessons that I’ll dive deeper into over the next week.

They include:

1. Commitment to Quality: The founders were deeply committed to quality, even personally inspecting meat to ensure it met their standards.
2. Simplicity in Offerings: In-N-Out maintains a simple menu, avoiding complexity to ensure a consistently great customer experience.
3. Quality Over Expansion: In-N-Out prioritizes quality over rapid expansion, growing at a controlled pace to maintain its brand integrity.
4. Cultural Impact: In-N-Out became a cultural icon due to the quality of its food, the cleanliness and cheerfulness of its employees, and its celebration of West Coast culture.
5. Employee Satisfaction: The company prioritizes keeping employees challenged and happy with good pay and opportunities for advancement, which translates into better customer experiences.

Lesson #1: A Commitment to Quality

As I learned while building a large business in the restaurant industry, quality is elusive. A customer may enjoy a fantastic meal at one location one day but have a terrible experience at another location at the same hour.

Famed economist Milton Friedman famously said that no single individual could ever produce a No. 2 pencil all on their own. The "lead"—actually graphite—must be mined underground, mixed with clay sourced elsewhere, formed into cores using special machinery, then encased in wood from another source using specialized equipment made elsewhere. And so on.

It's the same with restaurants.

Quality ingredients must be sourced from farmers and manufacturers, handled carefully during delivery, stored and prepared consistently by well-trained workers, sold in a pleasant way by happy employees in a clean environment—and all at a price consumers find reasonable. Rush any of these steps, and you're in trouble.

In-N-Out's journey began in 1948 with Harry and Esther Snyder's modest burger stand in Baldwin Park, California. Their approach was hands-on and meticulous:

• Harry pioneered the first two-way speaker system for drive-thru ordering.
• He personally inspected beef shipments, ground the beef and shaped patties.
• Employee selection and training were carefully curated.

This foundation of quality persists today:

• Superior meat quality: In-N-Out controls production and distribution, delivering fresh, never-frozen beef every two days.
• Customer-first attitude: Associates aim to accommodate reasonable requests.
• Friendly service: Smiles and warmth are standard.
• Accessible complaint resolution: A human always answers the 800 number.

The quality of food and customer experience go hand in hand because no restaurant gets it right 100% of the time.

Mistakes happen -- mixed-up orders, incorrectly prepared food, cold meals -- they're inevitable. But when customers feel loyal to a brand and invested in its success, they'll go to great lengths to work through problems, forgive negative experiences, and continue supporting the restaurant.

This loyalty is especially important in today's world of social media, food delivery apps, and online reviews. A single bad experience can quickly lead to negative reviews reaching hundreds or thousands of people.

A commitment to quality is essential for any new restaurant brand; it’s not something that can be rushed. Lasting quality results from a reinforcing partnership between great food, happy workers, and satisfied customers. It takes time to get these elements right and extreme attention to detail over long periods to earn trust and build relationships between workers and customers.

How Does Starbucks Compare?

Let's take a look at how Starbucks, which recently has faced tough times, compares to In-N-Out in these five areas...

1. Commitment to Quality: ?? The original Starbucks was all about quality coffee and experience. Over the past 25 years as the company has grown wildly, consumers have observed a decline in quality and in-store experiences.
2. Simplicity in Offerings: ?? Compared to its first menu, today's Starbucks menu is expansive and ever-changing.
3. Quality Over Expansion: ?? Starbucks began in 1971 and today has nearly 40,000 stores.
4. Cultural Impact: ?? Starbucks has made a huge cultural impact and counts millions of raving fans.
5. Employee Satisfaction: ?? Starbucks has been challenged by unionization efforts and complaints. A study funded by the Schultz Family Foundation rated Starbucks poorly regarding how it treats its workers, particularly concerning pay and promotion opportunities.