In-N-Out Burger Case Study

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INTRODUCTION TO MARKETING (MKT333) Case Study #3 In-N-Out Burger The first In-N-Out Burger restaurant opened in 1948 in Baldwin Park in Southern California. It was the nation's first drive-through hamburger stand. The original menu offered a simple burger and fries. The Snyder's early business philosophy was, "Give customers the freshest, highest quality foods you can buy and provide them with friendly service in a sparkling clean environment. By 1970 the chain had 18 outlets. Son Rich Snyder took over as president when his father died in 1976. Between 1976 and 1993 In-N-Out Burger expanded the chain to 93 locations and established a commissary facility to give the company greater control over its ingredients and created a company university to train new management. By 2003, the company had 171 locations in California, Arizona, and Nevada. In 2007, an opening in Tucson broke company records for most burgers sold in a day and week. The crowd was so large news helicopters circled overhead to film the spectacle. The chain expanded to Utah in 2008 and in 2011 the company expanded into Texas where they now have 16 locations. Today In-N-Out Burger has 281 locations and more than 18,000 employees. Analysts estimate annual revenues (2012) at more than $500 million with average revenue per location at $1.8 million which is more than double the national average. The company's operation focus has led it to pursue a very controlled expansion strategy. In-N-Out Burger is a privately-owned company. The Snyder family has staunchly refused to franchise maintaining that it is impossible to maintain quality when control has been relinquished. In-N-Out's red-and-while color scheme and 1950s decor has remained virtually unchanged through the decades. The company's packaging highlights a golden arrow stretched over the words "In-N-Out" representative of the Americana

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