In-N-Out Burger Case Study

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Brooke Jacobsen Susan Carder MKT 333 13 September 2015 Case Study #1 In-N-Out Burger Questions: 1. Why do some business analysts say that In-N-Out's business model is "counter intuitive"? In-N-Out is counter intuitive because it’s not like most fast food restaurants. First off it is not a franchise like most places for example, McDonald’s, Taco Bell, and Wendy’s. It is Family owned. Another reason is that the menu is basic. It offers 6 main groups and a “secret menu”. One known thing across the work industry is that In-N-Out values their employees, they are paid more than minimum wage and their managers make over $100,000 dollars with benefits. You don’t typically hear that about other fast-food joints. 2. Why is it said that In-N-Out Burger has a type of "cult following"? In-N-Out Burger is said to have a cult following because of how loyal their customers are. They make sure that they stop at In-N-Out Burger on their trips or some will even drive farther to go to one and wait in line for a long time. Customers will brag to others they had just eaten In-N-Out and some will even purchase their memorabilia. They have high review ratings even from people that live 1,000 miles away from an In-N-Out Burger. Some customers make sure they bring along maps or have the app downloaded on their phone. 3. Why do you think In-N-Out Burger has an estimated 20% profit margin while McDonald's reports a 6% profit margin? I think In-N-Out Burger has a bigger profit margin than McDonald’s because In-N-Out has a simple menu and McDonald’s changes theirs frequently. In-N-Out has also been run the same strategic way since its opening, while McDonald’s changes it strategy and marketing frequently. In-N-Out also seems to have a more customer loyalty basis, while McDonald’s seems to be just a pit stop fast food joint and is known to not be fresh and gross. 4. How would you

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