In-N-Out Burger Study Case

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1. Why do some business analysts say that In-N-Out's business model is "counter intuitive"? There are five main points prove the business model is "counter intuitive”. First of all, The In-N-Out Burger’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. Secondly, In-N-Out's menu has remained largely unchanged at all the time. The menu just included six kind of foods: hamburgers, cheeseburgers, double-doubles, French fries, milkshakes, and soft drinks. It only makes a few food items, it consistently makes them well and it earns the trust of customers. In addition to ordering from the official menu, customers also order from the "secret menu" customizations. Third, In-N-Out takes pride in its corporate culture that values and rewards its employees. Generally, In-N-Out Burger pays their employees at least $2.00 per hour more than their competitors. Such as restaurant managers average more the $100,000 per year plus a full benefit package! As a result, in an industry noted for high turnover (200% to 300% range) In-N-Out's turnover is about 50%. Next, the In-N-Out Burger do not spend a lot of money on advertising as usual. Finally, the In-N-Out Burger was the nation's first drive-through hamburger stand, the company was brave in innovation. 2. Why is it said that In-N-Out Burger has a type of "cult following"? The In-N-Out Burger business philosophy was, "Give customers the freshest, highest quality foods you can buy and provide them with friendly service in a sparkling clean environment. For example, in a recent survey of fifty-three fast food restaurants, several thousand consumer believe the In-N-Out Burger is the best food, service and

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